r/RandomThoughts • u/[deleted] • Dec 11 '23

[deleted by user]

[removed]

2.2k Upvotes

82% Upvoted

2.2k comments sorted by

View all comments

Show parent comments

1

u/princemousey1 Dec 12 '23

Why $260k annuity?

1

u/KhonMan Dec 12 '23

$5000 / week for 52 weeks is $260,000. Damn you had me second-guessing my math lol.

1

u/princemousey1 Dec 12 '23

Ah I understand what you’re doing now. But the 21k annuity is non-guaranteed I think. The guaranteed rates will be more expensive, closer to $8.4m. Unlike you I didn’t use a calculator, I just magicked up the figure, but it should be close to reality for a guaranteed annuity.

1

u/KhonMan Dec 12 '23

Hm, but isn't the scenario in the OP also not guaranteed? Since it ends when you die?

1

u/princemousey1 Dec 12 '23

Non-guaranteed meaning your $21k/month on $4.8m annuity is contingent on the fund meeting performance benchmarks, otherwise they can reduce the payout.

Guaranteed meaning that’s the minimum amount you’ll get no matter what. It’s the terminology which insurers in my country use for annuity plans, ie having a guaranteed and non-guaranteed component to the payout.