My father has passed and was a public school teacher for the system in Georgia. They are offering my brothers and I a lump amount of $31K per person vs. a monthly lifetime benefit of $747 per person.
The monthly benefit seems to be the Immediate Fixed Annuity (http://ift.tt/1CyX9Tk). We are all in our twenties so the value will diminish over time with inflation, however if the monthly benefit is invested in a standard market fund/ETF the future value would (assuming historical averages & add'l 40 yr lifespan) exceed expected inflation and produce a larger return than the lump sum's long-term potential.
I'm not very familiar with the fixed annuity so I'm wondering if I am missing any key pieces of information to know of. I understand any commentary provided is not legal or financial advice to act on.
TLDR: In 20s, Take Lump or Monthly (& re-invest in market?) Lump - $31,402.25/person Lifetime Monthly Payout: $747.35
Submitted February 12, 2017 at 03:40PM by Maczen http://ift.tt/2khnWC2
