Also because that lump sum is all there is. If you take the annuity they put the lump sum into an investment account and then pay you out of the proceeds (from which they take a cut, of course), and you can get the same returns they get, without losing their cut, doing it yourself.
They also take a big wet bite out of the total when you do a lump sum pay out. Then you pay taxes on it too. Oh and of you do the 20 year payout and die they keep it all. You can’t transfer it.
Biggest mistake people do is put it all towards a house for a low or no monthly mortgage. It’s better to invest it. Buy two. One to live in and a multi to rent out.
Yeah, my plan would be to buy a (small, perhaps even cozy) house to live in right now because my living situation is not ideal, set some small portion of it aside just to blow on stupid shit to get it out of my system, and then invest the rest to ensure that I can live off the proceeds for the rest of my life. Anything beyond what is necessary to secure myself a modest but comfortable lifestyle is going to be given away to help people.
Also because that lump sum is all there is. If you take the annuity they put the lump sum into an investment account and then pay you out of the proceeds (from which they take a cut, of course), and you can get the same returns they get, without losing their cut, doing it yourself.
They also take a big wet bite out of the total when you do a lump sum pay out. Then you pay taxes on it too. Oh and of you do the 20 year payout and die they keep it all. You can’t transfer it.
No doubt, but it’s still a lot better than doing the annuity. Half of fuck you money is still fuck you money.
Biggest mistake people do is put it all towards a house for a low or no monthly mortgage. It’s better to invest it. Buy two. One to live in and a multi to rent out.
Yeah, my plan would be to buy a (small, perhaps even cozy) house to live in right now because my living situation is not ideal, set some small portion of it aside just to blow on stupid shit to get it out of my system, and then invest the rest to ensure that I can live off the proceeds for the rest of my life. Anything beyond what is necessary to secure myself a modest but comfortable lifestyle is going to be given away to help people.