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lump sum or monthly payment

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byoyobrown
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lump sum or monthly payment  Reply with quote  

I have a problem, i am in county government 30yrs.i am 60yrs. old the wife 2yrs. younger. the pension plan have 500k. should i take the monthly payment of $2500 for me and the wife for life with a 3% annual increase or the lump sum. i need help must decide in two months.
Post Thu Jun 09, 2011 1:40 pm
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coaster
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I think a lot depends on your health and the longevity of your blood relatives. If you expect to live a long time, the monthly payment is the better choice. If you expect to die early, the lump sum is the better choice.

Actually, the 3% annual increase in the monthly benefit does swing a little more weight toward that option. If you take a lump sum likely you'll annuitize it and then you'll have a fixed payment for life.
Post Fri Jun 10, 2011 6:44 am
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Corporate85
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Lump Sum. You can make more than 3%/year in any market.

Take the money and control it yourself.

People allow annuities to give them a sense of security but fail to realize the lost opportunity of making more money with a larger lumpsum up-front (to either spend or leave for their loved ones)

As long as you aren't reckless, take the boat of cash and invest it wisely.
Post Fri Jun 10, 2011 7:15 pm
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coaster
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The gentleman is age 60. Are you taking that into consideration?
Post Sat Jun 11, 2011 5:39 am
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moneyclass
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if you take the lump sum your gonna have to manage it or pay someone to manage it. take the payments you have peace of mind and know your getting the same amount of money every month.

to me in retirement i want peace of mind and no worries on my money.
Post Sat Jun 18, 2011 2:26 pm
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jdk1970
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Age matters here  Reply with quote  

quote:
Originally posted by coaster
The gentleman is age 60. Are you taking that into consideration?


I have to agree... I think once you are over 60, you need to be careful about lump sums and investing. There are other factors to consider, of course.
Post Mon Jun 20, 2011 11:31 pm
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chrisgayle
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Pension income is taxable. If u get lump sum into your Individual Retirement Account, then will have much more control over when you remove the funds and pay the income tax. This could be the big benefit for you. With lump sum distribution, you could give a name of beneficiary to receive money after you and your spouse are gone.
Post Tue Jun 28, 2011 9:51 am
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allaboutcompany
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I would take a lump sum if I were you
Post Mon Oct 10, 2011 1:33 pm
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debedwards
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You should go with lump sum. You're 60 and you don't know what the future holds for you so it's best that you have control of your money right away.

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Post Sat Nov 05, 2011 2:51 am
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globaldoc2001
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Taking the lump sum would always be the best. I am not intending to say anything that may offend anyone here, but at 60 years old, we can never tell what is going to happen sooner or later. A slight accident can cause so much money. Having the full amount in your control would give you the security that should anything happen, the money is there.

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Post Sat Nov 05, 2011 1:12 pm
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noah herman
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Re: lump sum or monthly payment  Reply with quote  

Hi byoyobrown,

My personal suggestion is go through lump sum. because it will give more than 3 %.

Thanks Smile
Post Tue Mar 26, 2013 9:49 am
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Anton Martin
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Re: lump sum or monthly payment  Reply with quote  

quote:
Originally posted by byoyobrown
I have a problem, i am in county government 30yrs.i am 60yrs. old the wife 2yrs. younger. the pension plan have 500k. should i take the monthly payment of $2500 for me and the wife for life with a 3% annual increase or the lump sum. i need help must decide in two months.


I would like to suggest you to take monthly payments if you don't have other income sources and even if you have still it will be good decision to take monthly payments. As it will help you to save part of your monthly income to save regularly and keep you away from running out of money.
Post Fri May 24, 2013 10:36 am
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