I will shortly be ending my employment and I have the choice of receiving a lump sum or monthly payments from my pension plan. Which is the better option?
A. There is no right answer for everyone. A financial advisor can calculate the value of the pension versus the lump sum, depending upon the rate at which you anticipate that you can earn on your investment of the lump sum. After that, the answer depends upon whether you want the security of fixed payments which will end upon your death or whether you wish to be more aggressive ( and accept more risk), in which case you may be able to gain a greater return and leave an estate upon your death.
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