If your annuity promises you a $50,000 lump sum payment in the future, then the present value would be that $50,000 minus the proposed rate of return on your money.

For example, consider a 61-year-old worker who is eligible for a lump sum based on the present value of a $40,000 annual pension. A lump sum based on November 2021 interest rates would total about ...

Winning a lawsuit can bring financial peace of mind, but a lump sum windfall can produce certain pitfalls that a structured ...

After nobody won Tuesday’s Mega Millions drawing the jackpot has jumped to an estimated $1.25 billion as an annuity and $625.3 million as the lump sum cash option. The options through which Mega ...

Deciding whether to take a $400,000 lump sum or monthly pension benefit of $2,000 requires calculating the relative value of each option. Generally speaking, the sooner you can receive the lump ...

Pension Lump-Sum Hypothetical Hypothetically, let's say your pension would pay $2,500, per month, in 10 years, and they offered you $500,000 now to take the lump sum.

You can invest the lump sum to generate growth or income while also drawing from it to pay expenses. If you invest $200,000 at 4% and withdraw $915 each month, after 19 years you’ll still have ...

On a recent episode of her “Women & Money” podcast, Suze Orman broke down three common investment strategies: lump-sum investing, dollar-cost averaging, and value-cost averaging.

In Figure 1, I compare a lump-sum offer of $500K to the 100% joint survivor pension option, which is $25K a year. Single investors use the single-life pension payout. The formula in this case ...

Dear Liz: I need advice on choosing between a lump sum retirement benefit and a monthly payout till death (with a cost of living adjustment).The monthly payout option also includes health ...