Reported 10 months ago
Deciding between taking a $250,000 lump sum or $2,750 monthly pension payments involves evaluating factors such as the lump sum amount, monthly payment amount, recipient's age, health, financial literacy, and need for flexibility. A financial advisor can assist in making an informed decision by considering life expectancy, potential investment returns, survivor benefits, inflation, and investment safety. Ultimately, a well-managed portfolio could exceed the required returns, making the lump sum option attractive. This decision-making process often requires calculations and assumptions, with a financial advisor being a valuable resource for guidance.
Source: YAHOO