Anyone here using MYGA's as a substitute for a Lifetime Annuity?

I like MYGAs that allow 10% Free withdrawal of the Total Remaining Balance annually. I did a comparison for a standard MYGA and a Standard Lifetime Annuity. I just used the estimators available on ImmediateAnnuities.com and BluePrint Income. Of course, if you requires regular monthly income from your stash with no intervention form you, it may not work for you although some companies will allow you to take a monthly withdrawal. I am using a $250k Premium as an example.

Assumptions:

1) A Rated Life Insurance Companies or better.

2) $250k Premium

3) 10% of total withdrawn per year just before the 1st year anniversary

4) Federal Tax withholding based on one's individual requirements.

5) Based on current 5.5% 5 Year MYGA rates, you could also do the same with longer durations.

6) MGA Distributions based on 10% withdrawal of capital at the first anniversary. Remember Interest is taken first then the capital is drawn down.

Results:

1) A joint lifetime Annuity based on our individual ages: Pays $1,462 a month (Some is Taxeable) . If both parties die it is gone. If one dies the other gets the distribution until they pass.

2a) A 5.5% 5 Year MYGA will allow a withdrawal of $1,375 of interest and a portion of the capital. Assuming we take 10% at the end of the first year one can take ~$26,375 or $2,198 a month. Leaving $237,375 left.

2b) $237,375 will make $13,055 in interest in the second year. So, you would be able to take $25,043 or $2086 per month in the second year and so on.

2c) If one continues to do the math, one will still have a substantial nest egg left after 5 years, at that time one could decide to redo the MYGA, Take the cash out, or convert it to a Lifetime annuity.

Assuming I have my math right, I think if one wants to manage it (not a lot of management) one could get a better deal than the lifetime annuity with a lot more options. Remember when a lifetime annuity is set up, that is it, it is done and not reversable (unless you can sell it of course).

What are your thoughts.