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Hi Folks,
Thank you for your thoughts.

Personally, my first impulse was to take the lump sum and roll it over into my IRA. Then the money will be under my control, and dependent on my investment choices. However the lump sum offer is only 85% of the current total of my pension.

The issue with a single life annuity is that once I die, the payments stop. But the payments are "guaranteed", in theory, until then. Assuming we invest the payment (minus taxes) each month, we may be able to invest 100% of the pension over the years. Or even more than 100% if I'm feeling healthy. This may be a great way to invest slowly over time.

Playing with excel tables, and I don't know if this is a coincidence or not, it seems like the two choices even out if I live out my life expectancy, invest the lump sum or annuity payments, and assume a 7% return on those investments for the same period. If I assume a 10% return, the lump sum choice seems better. If I assume a 4% return, the annuity seems better.

Of course this all assumes we don't need the money for 30 years, and there's no way to predict that.

Thanks again, we appreciate all the help we can get making this decision.

bxm
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