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URL:  https://boards.fool.com/dear-bxm4fr-these-are-my-thoughts-that-i-31395995.aspx

Subject:  Re: Pension - lump sum or annuity? Date:  9/3/2014  6:18 PM
Author:  rwmfool Number:  75723 of 100418

Dear bxm4fr,

These are my thoughts that I considered a year ago.
Lump Sum
Pro-you have control of your lump sum money
Pro-it can grow very well (depending on your investment capabilities)
Pro-no one can take it from you or reduce the amount once you have it
Pro-when you and your spouse pass, your children could inherit the remainder
Pro-taxed only when you withdraw it
Con-you could waste it away (depending on your investment capabilities and spending habits)

Annuity
Pro-steady income for as long as you/spouse live (great if you live till 90!)
Pro-less worry because it is a steady income (don’t have to worry about what the market will do)
Con-when you pass, your children won’t get anything directly from the annuity
Con-taxed with each payment
Con-could annuity provider change or modify the payout at a later date? (not likely I think)

other recommendations:
Best advice I ever got - make sure mortgage and other bills are paid off before you retire.
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