Tag Archives: annuity

Lump sum payout versus annuity payments

While visiting John in STL recently, his girlfriend regaled with me a tale of a man (we’ll call Fred) who received a large settlement from his wife when they divorced. Fred then proceeded to move to Thailand (a lifelong dream of his) where he started a resort and began construction on a mini-mansion. Unfortunately he ran out of money shortly afterwards and is apparently now destitute These types of stories, with variations, are surprisingly common: someone wins the lottery and