Take a Lump Sum?
I read with interest your article on the decision to take a lump sum versus a lifetime payout (“A Lump-Sum Payout Might Make Sense,” Dec.). I look at my asset allocation on what I call an “extended balance sheet” basis where my pension payout is a bond and my Social Security is kind of like a TIPS bond. When I look at this “global” picture, including my IRA and taxable investments, the refined asset allocation indicates I have much more room for more risky, equity-type investments. In addition, the “longevity insurance” represented by the lifetime payout allows a longer investment horizon and additional sustainable risky investments. Another issue to consider is time spent on investing activities. While I like to manage my own investments (that’s why I subscribe to Kiplinger’s!),…