<prompt> Human: choice between 25k a year for life or a 390k one time lump sum, which would you do? Relevant facts: 30 years old, married, currently no kids, No credit debt, No car payments, Student loan balance 40k, stable employment with total pre-tax income 175k per year, 50k general savings, 15k 401k, currently we rent 1.7kmonth but hope to buy in the next 2 years. I estimate that the 25k would be about 17.5kyear after tax and the 390k would be about 255k.  <response>: Using social security mortality tables...they seem to be using a discount rate 5.75 or 6 depending if Male or Female. So basically do you think you can beat a guaranteed 6 return. If you want to take the risk to beat it, lump sum. If you want the 6 rate take the annual. Assuming payment comes from a source that can be expected to meet obligations long term. 