We encourage you to be responsible and keep the future in mind. The first thing to keep in mind is that it’s very easy to spend a lump sum right away without thinking about the consequences. While the monthly payment option protects your money from overspending, a lump sum should be handled with frugality and practicality in mind.
A large portion of this amount should be invested safely and wisely, particularly if you are very near to your own retirement age, and you do not have time to ride out market fluctuations. When investing, you should consider a conservative estimate of you and your spouse’s life expectancies weighed against your annual income needs, adjusted for rising healthcare costs.
Check out other topics here at Tickeron for more information on how to ensure the security of your retirement assets, and how to invest them for income.
What is a Lump-Sum Distribution from a 401(k)?
Can I Take a Periodic Distribution from my Pension Plan?