Should I Accept a Lump-Sum Pension Offer from My Old Employer?

Several years ago, my previous employer offered former staff members a lump-sum pension buyout. We were given the option of receiving a steady monthly amount over the course of retirement or a one-time cash payment (ideally put directly into an individual retirement account (IRA) to avoid taxes and penalties and to allow the assets potential for future growth). In addition to making this decision for myself, because I was a financial adviser, I was able to help several former co-workers evaluate their options.

This difficult decision came to mind again recently when General Electric offered a lump-sum payment option for roughly 100,000 eligible former employees who had not started taking their monthly pension plan payments.

If you find yourself having to choose between a lump sum or an ongoing monthly payout (annuity), there are many factors to consider. I believe it's most helpful to focus