Kind of new to this so please bear with me. My parents passed away recently and I (40M) am faced with choosing a lump sum vs an annuity from my mom's pension. Taking the lump sum is about 80k less than the annuity which makes the annuity feel tempting. But everyone seems to keep saying the lump sum so that it has time to grow.
I also ha e the option of rolling to a beneficiary IRA which seems kind of like both worlds but so far, at least with who I have talked to. I could choose to have 2.5% fee applied at the front to ha e it in brokerage or could have 1% removed annually to ha e it actively managed.
I am just kind of at a loss of where to start even figuring out the math on where my breakeven would be taking the lump sum versus the annuity. I get that me being 40 is still young enough to be a little more risk heavy but still really unsure.
Only debt is the house. No kids.
Am I over thinking this too much?
Thank you in advance.