Why Might One Want to Select the Lump-Sum Payment Option

question 59

Multiple Choice

Why might one want to select the lump-sum payment option for one's retirement funds?

• A)Taking the lump-sum can be a hedge against inflation.
• B)The lump-sum option provides greater flexibility than other options.
• C)You can invest the funds and perhaps earn a higher return.
• D)Having access to the funds provides money for emergencies.
• E)All of the above

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Definitions:

Output

The quantity of goods or services produced by a company, industry, or economic system.

Housing Development

A planned residential community, often including various amenities, constructed by developers and divided into individual properties for sale.

Profit-Maximizing

A strategy or behavior that seeks to achieve the highest possible profit from business operations, given certain constraints and market conditions.

Damages

Monetary compensation that a court orders to be paid to an individual or entity as recompense for loss or injury.