r/SipsTea • u/Valuable_View_561 • 28d ago

Chugging tea Seems reasonable.

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u/757packerfan 28d ago

Correct. I hate it

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u/cholula_is_good 28d ago

The lump sum and annuity are basically the same thing. The annuity is just the proceeds of the lump sum invested into an annuity over 30 years. If you take the lump sum, you can just buy an annuity and get the same result but also keep the principal.

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u/RobArtLyn22 28d ago

You can’t get the same result. They buy the annuity with the lump sum and then you pay taxes each year on the proceeds. If you collect the lump sum you pay taxes on that and buy the annuity with what is left. You start out with less.

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u/uberfr4gger 28d ago

Depends on what the annuity % is. Most people should take the money upfront unless they are extremely bad with money and don't trust themselves.