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Some pension plans offer a hybrid option that combines the benefits of both a lump sum and an annuity. For example, you might choose to take 30 percent of your pension as a lump sum and convert ...
You can fund an annuity with a single lump-sum payment or through a series of payments over time. The insurance company then invests your money and promises to pay you back through regular ...
You can receive a lump sum from your annuity, a life option that pays over your lifetime and, if you choose, a spouse, other survivors or an estate, or a systematic stream of fixed payments that ...
Loss of control: If you take the monthly pension annuity, you generally can’t choose to take a lump sum later. Also, once you purchase a retail annuity, your money is considered illiquid and you ...
Let’s assume you have no cost of living adjustments on the pension annuity or rate of return on the lump sum payment. Then, at $462 a month and $5,544 annually, you need to reach 8.65 years to ...
An immediate annuity is a financial product sold by insurance companies that allows you to convert a lump sum of money into a stream of guaranteed income payments.
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