flintnational
Thinks s/he gets paid by the post
The calculation for this is straightforward. The hurdle rate is 5.75%, which is the amount the 405K would have to earn each year in order to begin taking 36K per year at age 63 until you turn 98 - 35 years. If you earn over the 5.75% you will do better taking the lump sum, if you and your wife die before 35 years it would have been the better financial decision. If you earn under 5.75% it will be unfavorable.
If you earn 7% by year 35 you are 1.6 million dollars to the better
Thanks Running Man. Thats a good way to look at this.
FN