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So this is a weird one, which has sent us off to the drawing board. We've made our decision, but I thought I would stick a thermometer in the board and see what the temperature is here.

Mrs. Goofy recently got a mailing from a previous employer that she has a pension coming (honestly, she didn't know.) She is 62, in reasonably good health (father alive at 93, mother died at 70). The pension will provide around $200/mo for life*, they are offering a one-time "give out" of $34,000 to get it off the books.

Facts we had to consider while deciding: I am 70, about to be forced next year to extract $55,000/yr from an IRA which will count as income, we have another $25/yr in rental income, another $20k from SS, and another decent slug from interest and dividends. That's a long way of saying I'm not going to be able to manipulate our income into low- or no-tax levels ever again. So the "new found" $200/mo will be in a higher tax bracket than it might otherwise be.

There is a deadline date in about a month, after which the "give out" option will not be available.

No kids, no heirs. Just charities to think about.

So. Take it all now, or take it monthly forever? (In our life this is not what you'd call a big decision, but it did present an interesting and unexpected problem to solve.)

*There are other annuitized options, including spousal survival and others which reduce the monthly payout, but since I am 8 years older than her and in worse health, those are moot as far as this decision goes.
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