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No. of Recommendations: 1
WalkingOnMarbles: "If I take the annuity immediately, then I also qualify for retiree medical benefits. I can't actually use the medical benefits now, since I qualify for benefits through my spouse, but I can defer them provided I take the annuity now. These medical benefits are not guaranteed, so they might not be there in a few years due to cost cutting."

This will be kind of simplistic, but it looks like you are being asked to buy a "pig in a poke".

You will be parting with real money for something that you cannot currently use and which may disappear at any time.

I know that medical insurance issues are difficult and that private insurance can be expensive, bu in order to assess the present value of that potential insurance, you will be WAG(ing)a bunch of unknowable numbers and I am unsure how you can have much confidence in the end result value.

As others have noted, the annuity also forces you to trade away all the potential upside of the portfolio that would result from taking a lump-sum.

Regards, JAFO
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