For birdsong, due to the unfortunate timing, the lump sum almost definitely would have been better. But you can never know those things in advance.Thank you for sharing your experience!You save all your life and plan well but nothing is a guarantee for the future. I know the struggle of the OP to try and make the best decision. Good that the OP came here to get the input from the many wise bogleheads good with numbers and experience.
If I can ask, what would you do if he had the option of getting a lump sum and you could do it over? I know the facts of know how things turned have probably changed some of your thoughts on the situation. Do you think it would have been better had you gotten the lump all those years ago? You have an insight on this topic that may would like to hear about!
Again thank you for sharing and the wise words of advice!
Here is a comparable situation. A husband and wife are weighing options for an old pension. Default is 50% survivor annuity. Lump sum is one option at 300k. They decide on lump sum but papers have aged and new ones must be issued. Husband, primary annuitant passes.
So wife automatically gets 50% survivor but company will still offer a lump sum. But now it is based on 50% annuity and only her life expectancy. So now the lump sum offer is only 120K
Smaller payment for likely less projected time yields much smaller lump sum even when actuarially neutral choices.
Statistics: Posted by LotsaGray — Mon Apr 01, 2024 11:30 pm — Replies 11 — Views 728