Article: FACTORS TO CONSIDER IN ANNUITY VS. LUMP SUM

Q. I am trying to find information for making a retirement decision on whether to take a full annuity or take about half the annuity amount and take the rest in a lump sum that would be invested. The total per month would be less with the second option but there would be funds for heirs. All the money people I speak to say take the money and invest it. Some retirees say they like the peace of mind of getting a check every month and saving some.

J.B., Bethlehem, Pa.

A. There is no rule of thumb to follow when deciding whether to take a lump sum or an annuity because there is a very wide diversity in the offerings from company to company. Some companies offer annuity payouts that are so ...

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