Larry/Munroe
I annuitized $200,000 of a $2M networth plan in an Elm straight life, inflation annuity. I assumed none of the payment was taxable. Consumption dropped from 66127 to 66125, negligible.
However a side calculation shows a real IRR of 6.05% over the 27 year payout. All other plan assets earn 3% real. The annuity should have increased consumption.
Any idea?
Thanks
Charlie
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