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My original post was probably not worded very well. Actually, I was trying to determine what equivalent ROI would be needed on the lump sum value in order to generate the same income stream as the guaranteed lifetime annuity. Since I had to pick an end point, to be conservative, I assumed that I would live until 90 (who knows, might get lucky). This resulted in a required ROI of about 7.0%. If you assume that the income stream is required for fewer years, like to 75 or 80, the the required ROI goes down to about 5%, which is inline with the information from others.

The actual number that the corporate pension plan is using is not important, it appears to be in the 4-7% range. Given that, it seems an obvious decision to take the lump sum and invest it Foolishly (a Roth IRA adds an interesting wrinke to this). This is not the only egg in my basket and I still have 15-20 years before retirement. If this egg went away completely, I wouldn't be devastated (disappointed, yes). Thanks to all that contributed to this discussion.

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