#lump-sum

2 articles

A $250K Pension Buyout Only Beats a $24K/Year Pension If You Can Earn Over 9%

We ran a $250,000 lump-sum offer against a $24,000/year pension (2% COLA) for a 65-year-old expecting to live to 85 — the breakeven discount rate lands just above 9%, well above conservative retirement-portfolio assumptions.

$50K Bonus: Lump Sum Beats DCA 67% of the Time (the Other 33% Is the Story)

Vanguard's research and our Monte Carlo runs converge on the same answer: lump sum wins about two-thirds of the time. The interesting question is what happens in the third where DCA wins, and whether you'd survive it.