Q: I am 68 and retired. My pension, which is $610/month, has been sold. I was offered a lump sum of $100,000 or I can keep the $610/month. Which is better for me?

A: At $610/month you are receiving $7320/year. That is 7.32% based on the $100,000 offer, which is a very good annual yield – guaranteed to you. If you live longer than 13 years, which is very possible, you will have more money with your current monthly pension than the lump sum. I would keep the monthly pension.

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