"One of the simplest ways to evaluate a lump-sum offer is to find out the extent to which the money compensates you for the loss of your pension. I asked New York Life Insurance how much it would cost me today to buy a deferred annuity that will pay me $423 a month, starting in 14 years. The answer: $45,896, which means my lump sum falls $13,808 short of what I would need to replicate my pension's guaranteed income with an annuity.... Of course, I can always invest my lump sum myself. But is it realistic to think that over the next 14 years I will be able to turn my $32,088 into $127,000? ... The answer: probably not, since I will need to earn 10.35% a year, net of investment fees."  MORE >>