I’ll answer a question with a question: Why do lottery winners always take lump sums rather than payments? It’s a guaranteed return vs.a variable return with growth potential based on management.
Two thoughts: Can you do as well or better than the managers of your annuity? And, what is the end result of the annuity when one passes and also when both have died? Will anything be passed on to beneficiaries? This can be a big plus for the lump sum option.
I am going back and forth. I am currently 58 and wanting to retire before FRA. The long term annuity option offers continuity in payments, not a great return (but they’re not known for that, right?) However, if I take an immediate annuity, it might satify both worlds – security and increased time for the retirement accounts to grow – without having to deal with the self provoked stress of managing withdrawal schedules, buckets, and so forth for a bit longer.
I’ll answer a question with a question: Why do lottery winners always take lump sums rather than payments? It’s a guaranteed return vs.a variable return with growth potential based on management.
Two thoughts:
Can you do as well or better than the managers of your annuity?
And, what is the end result of the annuity when one passes and also when both have died? Will anything be passed on to beneficiaries? This can be a big plus for the lump sum option.
I am very content living on monthly RMD payments from my 403b. I am 74, retired for 8 years, have no pension but waited until 70 to draw socsec.
It really depends on what you need. Spouse and I crunched the numbers and decided to take the annuity. Having a guaranteed income floor is assuring.
I am going back and forth. I am currently 58 and wanting to retire before FRA. The long term annuity option offers continuity in payments, not a great return (but they’re not known for that, right?) However, if I take an immediate annuity, it might satify both worlds – security and increased time for the retirement accounts to grow – without having to deal with the self provoked stress of managing withdrawal schedules, buckets, and so forth for a bit longer.