Take a lump sum, annuity, or pension?
My former employer is offering a one-time opportunity to disburse or reallocate my traditional pension (defined benefit). Here are my options:
Lump sum/rollover (subject to tax/withdrawal penalty): $5,000
Annuity: $22/month for life payable immediately
Pension: $140/month payable at age 65
I’m 39.5 years old and am more a grasshopper than an ant in terms of my financial planning.
What should I consider?
This question is in the General Section. Responses must be helpful and on-topic.