gogreengo,As someone who has been investing for 40-some years, I would be all over the lump sum payout.Starting at 47 and using 65 for an end point:At 6% annual return, the $35K would be $254,430. Using a 4% withdrawal rate would give you $915 per month. Payments could slightly increase each year to $1,085 at 70.At 4% annual return, the $35K would be $199,131. Using a 4% withdrawal rate would give you $707 per month.Your math is terribly incorrect.6% compound on $35k for 18 years (65-47) is $99,901 (compounded annually). I have no idea how you got to $254,000 but that would be a rate of nearly 12% a year. Take 4% of that a year and you are looking at $333 a month, half of what they would get in their pension.4% compound would only be $71,000.I'll run a more detailed analysis of the options presented later (unless someone else beats me to it) but I had to respond to this gross over estimate before I started my day.As someone who has been investing for 40-some years,I mean no disrespect but when you use your previous experience to add weight to your opinion, you should really do a better job in the results. A simple eyeballing of the numbers and using the Rule of 72 and I immediately knew something was wrong with your math.Compound interest calc:http://www.moneychimp.com/calculator/compound_interest_calcu...Measure twice, cut once:http://www.bankrate.com/calculators/savings/compound-interes...
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