You can estimate that rate of return with the ... annual annuity payment amount, and lump sum offered. For example, suppose you’re a 64-year-old woman and have the choice between $28,000 per ...

Here are the steps in Excel: To see how this all works, let’s look at an example. In Figure 1, I compare a lump-sum offer of $500K to the 100% joint survivor pension option, which is $25K a year.

You can invest the lump sum to generate growth or income while also drawing from it to pay expenses. If you invest $200,000 at 4% and withdraw $915 each month, after 19 years you’ll still have ...

The secret to investment success is compounded returns, which work in a similar fashion This calculator works out how much a lump sum saved or invested, or regular monthly amounts put into the ...

To do this, they need to estimate how long ... in some situations. For example, if someone has significant debt, it may make more sense to take the lump sum and pay off what’s owed rather ...