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Should you take the lump sum settlement or pension?

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Should you take the lump sum settlement or pension?
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I have a special warning for you. All over the internet, TV, radio, there are ads for people who say, hey if you have an annuity, a settlement, or a pension, how would you like to get your money up front all in a lump sum?

Well let me tell you, that siren song of getting your cash upfront is really a terrible thing for your wallet. Because any of these groups that offer to pay you a lump sum up front are going to rip you off like you can’t imagine, because they’ll take what could have become a lifetime of income for you and give you mere pennies on the dollar. There is never, ever a situation where you should take a settlement from a lawsuit or annuity or pension and cash it out for the money all at once, because then all at once your future goes up in smoke. I’m Clark Howard.

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Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
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