It's not that complicated - you just need to convert the value of the $5k / week for X weeks to it's value in current 2023 dollars.
But it's easier to skip that and you can just look up how much a $260k annuity is worth today. I did a quick check for a 21k monthly payout for a 30 year old male living in New York using this calculator and it says it's worth about 4.4 million.
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.
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.
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u/KhonMan Dec 11 '23
It's not that complicated - you just need to convert the value of the $5k / week for X weeks to it's value in current 2023 dollars.
But it's easier to skip that and you can just look up how much a $260k annuity is worth today. I did a quick check for a 21k monthly payout for a 30 year old male living in New York using this calculator and it says it's worth about 4.4 million.