which is better a lump sum or an annuity 
there are pros and cons to accepting a lump sum payment rather than an annuity fixed payments over a period of time the right choice depends on the value of the lump sum versus the periodic payments and one s financial goals it is not always best to take the lump sum payment in lieu of periodic annual payments if offered the choice consider taxes investments and the net present value npv which accounts for the time value of money 