Here's what to consider when deciding between a lump sum payout or fixed monthly pension income.

The time value of money (TVM ... and you are presented with two options: A lump sum payment right now worth $1 million or 10 annual payments of $100,000 each (totaling $1 million over that ...

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. As you might imagine ...

Choosing between a $500,000 lump sum and $3,500 monthly payments requires estimating the relative value of each option. For this example, assume the pension recipient is a 60-year-old male who has ...

The rates are known as the IRS Minimum Present Value Segment Rates. Wyman said three variables come into play in the lump sum calculation. First, there is the monthly pension amount for the ...

In this case, the monthly payments have a somewhat higher value, adding up to $594,000. However, because the lump sum would be invested for a longer period before she starts her withdrawals ...

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. While each ...

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 ... is the present-day value of the jackpot ...