Buying a First Home
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Buying a First Home

After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.


Buying a First Home

Lifetime Annuity Vs. A Lump Sum Payout

Irma Bates

When you retire and can begin receiving your pension, you have a choice between a lump sum payment or a lifetime annuity. In the first instance, you get all of your money at one time, and in the second instance, you get a fixed check for the rest of your life. While the dependability of a steady income might sound like a good option, there are instances where taking the lump sum payout might be the better option. 

Do You Have Children?

If you have children, then you may want to consider taking the lump sum payout. The reason for this is that when you choose a lifetime annuity, your spouse can end up with only 50% of your pension when you die. On the other hand, if you take a lump sum payout and are smart with your investments, you should have plenty of money left over when you die to give to survivors as an inheritance. 

Are You a Good Investor?

If you take a lump sum payout, having a huge sum of cash at your disposal may lead to the temptation to buy whatever you want. If you are not wise with how much money you spend, you may end up with no money in a short period of time. On the other hand, if you take your money and invest it carefully, you can grow your money. Remember, however, that as you age, diseases like Alzheimer's and dementia become more of a risk, and if you fall prey to them, they can seriously injure your ability to invest. 

Do You Need the Money Right Away?

If you retire from a job, you may still work at another job if you choose to. In this case, you may be able to support yourself without the need for a pension check. In this case, you should consider taking the lump sum payout and investing your money so that it can continue to grow while you are able to provide for yourself. 

What Will Happen with Inflation?

Most pension plans do not factor in the increase in the cost of living due to inflation. Thus, while your pension check might be enough to get by right now, it may leave you living in pinched circumstances in just a few years. 

These are just a few of the factors that you should consider when you receive your pension. Suffice it to say that you must weigh your circumstances carefully and make a choice that fits the realities of your situation.