Aeowyn
Recycles dryer sheets
Just my 2 ₵ (from someone who doesn’t like annuities). I would take the cash payout. The annual payout they are giving you represents just over 6% of the lump sum payout. I feel confident that I could get a better return than this from a well diversified equity portfolio over the long term – and keep control of the principal.
Of course with an investment portfolio – you are taking risk. So if you are the zero risk type, then maybe it’s worth paying the annuity fees to get a lifetime income stream (actually annuities aren’t risk free – they are only as good as the company that is providing it).
But I’m more of a control freak type (don’t want the annuity company to have control over my money – you’re kind of locking in for life with them). I’m also comfortable with the ups and downs of the stock market and know (after being through a couple downturns) that I’m not the type of person to jump off the rollercoaster at the bottom.
Of course with an investment portfolio – you are taking risk. So if you are the zero risk type, then maybe it’s worth paying the annuity fees to get a lifetime income stream (actually annuities aren’t risk free – they are only as good as the company that is providing it).
But I’m more of a control freak type (don’t want the annuity company to have control over my money – you’re kind of locking in for life with them). I’m also comfortable with the ups and downs of the stock market and know (after being through a couple downturns) that I’m not the type of person to jump off the rollercoaster at the bottom.