Billy Blanks

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My math and assumptions need to be checked, but I would think about it like this: 30k now or 12k a year in 25 years? I use the 4% assumption quite a lot, ignoring the current lower interest rate bias to address the hypothetical question. That means you'll have $1200 of income (4% of 30k) now vs $12000 income (1k a month) in 25 years. So another way of phrasing the question is would you think an IRA could be used to grow that 30k by ten times in 25 years? Many projections show SP500 growth of 5 to 7% over the next 10 years. So assuming 6% growth your 30k would double every 12 years (rule of 72). In 24 years at the same rate your 30k invested in the SP500 in an IRA would be a little over $120k. That would only earn you $4800 a year in income. I'd go with the state retirement plan if the 1k a month in 25 years is real.

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Imho I think this is an easy one. Put it in a Roth IRA. I suggest a retirement fund based on year 2050. Something similar to a Fidelity Freedom 2050 fund. Easy to assume the fund would average 9% annually, easy. This means the value of the 30K will double every 8 years. So, after 24 years the 30K would be worth about 250K.
To receive 12K/yr as is the other option, this is the equivalent of 150K principle earning 9%.
In addition, withdrawls from the Roth will be tax free. The 1K payment will be taxable.

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Will your wife be able to get the $1,000 if something happens to you first?

I want my wife to get income and not accounts full of Ira money

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