No. of Recommendations: 2
SoCalRN: "We're down to the wire in deciding whether to take a lump sum of about $475,000 or to take an annuity of about $2,600/month when we retire in a few months. We're both 56 years old and in excellent health. . . . The $475,000 is about 1/3 of our investment pool. The other money is invested entirely in 401k stock mutual funds, Roth IRA stock mutual funds and a cash emergency fund."

Too much info missing?

Who is we?

$2,600/month starting soon, but does it adjust (or even disappear) when one of you dies?

Is $2,600/month fixed or does it adjust for inflation?

$2,600/month * 12/ 475,000 = 6.568%. Seems high for never adjusting second to die annuity, but I would still worry about inflation.

Just my $0.02. Regards, JAFO
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