Break-Even Age: When Cumulative Payments Overtake the Lump Sum
This lesson is part of the course
In this lesson
You track 30 years of annuity payments, cumulative and discounted, and find the age at which Maya has received more than the lump sum, without and with the time value of money.
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Lessons in this course
- Present Value of a Level Annuity at Different Discount Rates Locked
- The Annuity's Implied Return: RATE by Age at Death Locked
- Break-Even Age: When Cumulative Payments Overtake the Lump Sum Locked
- Mortality-Weighted Value: Survival Probabilities × Payments Locked
- Inflation: COLA vs Fixed Annuity in Real Dollars Locked
- Drawdown from the Lump Sum: Balance Path, Run-Out Age & a Chart Locked
- Probability of Running Out: Return Scenarios & a Weighted Shortfall Locked
- Joint & Survivor Options: Reduction %, Survivor Factors & Household Value Locked