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CVragel, you asked:

<< Thank you for your reply. I appreciate the thought on it. What if I would take the lump sum they are offering me ($31,435.50) and invest it totally--i.e. not relying on any of it for income? >>

If you take the lump sum of $31,435 and invest it and don't touch it (not taking any tax issues into account), you'd have about $79,856 at 6% and $144,443 at 10% rate of return at the end of 16 years. If you take the monthly installments of $410 and invest without touching it (again, not taking the tax issues into account), you'd have about $132,305 at 6% or about $194,500 at a 10% rate by the end of the 16 years. So, again, the numbers show that the lump sum offer doesn't look very good.
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