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Personal Finance and Investing

bif

(23,980 posts) Sun Dec 11, 2022, 01:33 PM Dec 2022

Question about collecting a pension or taking a lump sum [View all]

My wife is eligible for her pension. It's not a huge amount of money. She can either collect $290 a month for the rest of her life (she's 65), or take a lump sum (around 40k). I'm thinking it would be better to get the lump sum and put it into a couple of stocks/funds that are paying 9%.

What's the best bet?

25 replies

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Question about collecting a pension or taking a lump sum [View all] bif Dec 2022 OP

This message was self-deleted by its author snowybirdie Dec 2022 #1

You can get snowybirdie Dec 2022 #2

KYN--Kayne Anderson is paying over 9% bif Dec 2022 #7

How much of that KYN 9% includes return of principal? It doesn't look so great at Morningstar progree Dec 2022 #11

I faced the same decision. My company offered an enhanced rate on the annuity, noticeably better MLAA Dec 2022 #3

She worked for a bank ages ago. bif Dec 2022 #8

Do you have to pay multigraincracker Dec 2022 #4

how is her health? lapfog_1 Dec 2022 #5

She's very healthy! bif Dec 2022 #10

Is there a Cost Of Living adjustment on the pension? Is the pension fund reliable over the long term Midnight Writer Dec 2022 #6

No COLA bif Dec 2022 #9

I had one of those small pensions and I cashed it in for the lump sum yellowdogintexas Dec 2022 #12

I cashed in mine for about 20k and... bif Dec 2022 #13

I would absolutely consider an annuity. A HERETIC I AM Dec 2022 #14

I already have an annuity bif Dec 2022 #16

Nothing stopping you from having more than one! LOL.... A HERETIC I AM Dec 2022 #17

Thanks. bif Dec 2022 #18

I am frequently astonished at the trashing of annuities here on DU. PoindexterOglethorpe Dec 2022 #22

My annuity has lost 23.3% in purchasing power in the last 6 years, due to inflation progree Dec 2022 #23

What I appreciate is the rock-solid dependability of the annuities. PoindexterOglethorpe Dec 2022 #24

So true, about annuities often being trashed here on DU. PoindexterOglethorpe Dec 2022 #25

I was offered a buyout at 62 for $104k, so far I have doc03 Dec 2022 #15

If she lives 20 more years and gets $290/month, that's a 6.148% annual average return progree Dec 2022 #19

How well is the pension fund managed? Is it underfunded? Pobeka Dec 2022 #20

After talking to our broker bif Dec 2022 #21