Should you take the lump sum settlement or pension?

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Should you take the lump sum settlement or pension?

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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