I would take the Million. I do my own investing and usually beat 8%. Don’t start withdrawals until the 13 month. Then, at a lower rate of maybe $3700. Then, raise the withdrawal rate the next year and so forth until the balance gets to $1.2 million. Then, withdraw at an equivalent 5% per year from then on.
What if you have a sizable 401(k) in addition to an opportunity to take your pension as an annuity with 0 COLA or a lump sum. Annuity distribution rate is over 7% - I’m leaning toward the annuity with a 15 year guarantee
Lump sum. You can buy stocks with dividend payouts that easily beat the 5k per month. Bonus is you still haven't touched the principal.
I would take the Million.
I do my own investing and usually beat 8%. Don’t start withdrawals until the 13 month. Then, at a lower rate of maybe $3700. Then, raise the withdrawal rate the next year and so forth until the balance gets to $1.2 million. Then, withdraw at an equivalent 5% per year from then on.
What if you have a sizable 401(k) in addition to an opportunity to take your pension as an annuity with 0 COLA or a lump sum. Annuity distribution rate is over 7% - I’m leaning toward the annuity with a 15 year guarantee
Lump sum bet on black
In Vegas. Lol
Everyone is a hero in a bull market so of course the majority of comments will be to take the lump sum. 😂
Lump sum