A couple is deliberating whether to take a lump sum of $2.9 million or monthly payments of $15,600 from the husband's pension. With a projected $4.8 to $5 million retirement portfolio and additional Social Security benefits of $65,000 a year, it's critical for them to analyze their financial situation and retirement goals. Cashing out offers immediate financial access, potentially aiding an early retirement, but requires careful consideration of long-term needs and sustainability, especially with no cost-of-living adjustment included in monthly payments.
Taking a lump sum from a pension can entice immediate financial freedom, but evaluating long-term benefits through a break-even analysis is crucial.
Considering their financial goals and future needs, the couple must decide whether immediate access to $2.9 million or $15,600 monthly payments for security is best.
#pension-decisions #financial-planning #retirement-strategies #lump-sum-vs-monthly-payments #break-even-analysis
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