- posted 10 years ago
I'm a US citizen with retirement coming in the next few months and I
need some advice on whether to take my pension as a lump sum or an
annuitized payment. The people I?d typically ask for advice all have
a vested interest in one choice or the other, so I?d like to get the
collected wisdom of the net.
The annuity on my life alone is ~$70k/yr, on my and my spouse with 50%
survivorship is ~$64K, and $58K with 100% survivorship. With interest
rates so low, the lump sum has risen to ~$950K. Our investments are
worth ~$2.5 million with just over half in retirement accounts. We?re
in our mid and late 50?s, my company provides health care for retirees
and we have no debts save for a manageable mortgage.
Three years ago I would have taken the lump sum without a second
thought. In today?s environment, though, I have no idea what I?d do
with the money. I?m mindful of what happened to tech stocks which
have been flat since the bubble burst a decade ago, and financial
articles run the gamut from predictions of a 14,000 point Dow next
year to double dip recession with serious deflation. What are some
factors and options we should be looking at?