Quote:
Originally Posted by dewilson58
$375,000 is simple math too. 
The OP has $265k.
Mine was a simple example to show the OP.....a 13 year breakeven is BS.
The OP can use LT US Bonds for the 5%.............I was not giving him/her investment advice. |
Typo. I corrected my post. Using $265,000 the math comes to 13 years, 2 months which is close enough to call it a 13 year breakeven point.
Not investment advice but you mentioned CDs which actually are not terribly liquid. Not familiar with LT US Bonds but I assume the LT portion means those are not terribly liquid either.
My point is, if the annuity is fixed and if the company can be trusted to survive 20+ years then you can't guarantee something better using the market. The market *could* turn out better but it might not. CDs or Bonds at 5% would give 17 years (if your calculations are correct).
If the question, "When R U going to die?" is important to the OP then he might not want to bet on the answer, "In the next 17 years."
If I am missing something, someone please point it out.