Originally Posted by obgyn65
Please can you explain why the OP is not a good candidate for an annuity ? In his shoes I would take it....
I wouldn't say he isn't a good candidate. However, he has multiple source of a COLA income so he doesn't necessarily need another source.
Looking at a couple of annuity calculators it appears you can get a around $2k/month for a $430K annuity at your age. I don't know your health particulars so I'd recommend check out some of the annuity calculators on the web. Generally speaking annuities offered by employers offer slightly better rates (a few percent) better than annuities sold directly and modestly better than ones sold by insurance agents.
If I had kids or other reasons to leave an estate. I'd definitely take the lump sum given your other sources of income. Even if you don't have kids, I think Midpacks logic is spot on. Interest rates are very low now so your monthly payment/ $100k invested will go up the longer you wait. First because of the likely higher rates and second your life expectancy goes down. For all intensive purposes buying an annuity is non reversible option. While you have a good amount saved in the 401K, I know of continuing care homes that require upwards of $750K buyin (it is mostly refundable to the estate) but provide guaranteed continued care. The bottom line is that is easier to take a lump sum and transform it into income than take income and transform it into a lump sum.
The money you have in your 401K should be more than sufficient to let you reach 59.5 without having to go through the hassles of a setting up 72(t).