lump sum or monthly payment |
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byoyobrown
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 09 Jun 2011
Location: florida |
lump sum or monthly payment |
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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.
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Thu Jun 09, 2011 1:40 pm |
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Corporate85
New Member
Cash: $ 0.65
Posts: 3
Joined: 10 Jun 2011
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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.
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Fri Jun 10, 2011 7:15 pm |
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moneyclass
Contributing Member
Cash: $ 6.25
Posts: 28
Joined: 04 Feb 2011
Location: Cleveland, Ohio |
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.
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Sat Jun 18, 2011 2:26 pm |
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jdk1970
New Member
Cash: $ 1.05
Posts: 5
Joined: 20 Jun 2011
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Age matters here |
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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.
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Mon Jun 20, 2011 11:31 pm |
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chrisgayle
Contributing Member
Cash: $ 7.40
Posts: 37
Joined: 11 Jun 2011
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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.
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Tue Jun 28, 2011 9:51 am |
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allaboutcompany
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 10 Oct 2011
Location: UK |
I would take a lump sum if I were you
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Mon Oct 10, 2011 1:33 pm |
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globaldoc2001
Senior Member
Cash: $ 75.25
Posts: 366
Joined: 30 Aug 2011
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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.
Business Tax Filing
Debt Consolidation Companies
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Sat Nov 05, 2011 1:12 pm |
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noah herman
Member
Cash: $ 2.40
Posts: 11
Joined: 19 Mar 2013
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Re: lump sum or monthly payment |
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Hi byoyobrown,
My personal suggestion is go through lump sum. because it will give more than 3 %.
Thanks
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Tue Mar 26, 2013 9:49 am |
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Anton Martin
Full Member
Cash: $ 15.00
Posts: 73
Joined: 23 Nov 2012
Location: Florida, USA |
Re: lump sum or monthly payment |
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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.
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Fri May 24, 2013 10:36 am |
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