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It is important to be aware of the options available when you are considering taking a lump-sum payout or monthly payments.

A large chunk of money can feel very tempting, but it might not always be the best idea. There are many things that need to be taken into account before making such an important decision.

One thing that needs to be considered is what type of investment strategy you have in place for your future income stream. If you don't have any investments set up yet, then taking a lump-sum payment could make sense because it would all go towards investments instead of being spent on day-to-day expenses like groceries and utilities which would come out of your monthly payments. This way, if anything did happen to you, the money would still be there to cover monthly expenses. If you did have a monthly income stream set up for your future, then taking a lump-sum payment would not make sense because there wouldn't be enough left over each month to pay for your bills.

Another thing worth considering is inflation and what it will do to your lump-sum payout. It is true that you can invest the money, but if your investment strategy doesn't pay off (or is delayed in paying off), then you could end up with less than what you started out with after inflation has had its say.

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