Lump-Sum Payment

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Dictionary Says

Definition of 'Lump-Sum Payment'

A one-time payment for the total or partial value of an asset. A lump-sum payment is usually taken in lieu of recurring payments that would otherwise be received over a period of time. The value of a lump-sum payment is generally less than the sum of all payments that the party would otherwise receive, since the party paying the lump-sum payment is being asked to provide more funds up front than it otherwise would have been required to.
Investopedia Says

Investopedia explains 'Lump-Sum Payment'

Lump-sum payments are often used in structured products that typically provide payouts over a series of times, such as annuities or other retirement vehicles. This type of payment is also used in structured settlements, and in some corporate retirement packages, in which the company will incentivize employees to retire early by providing all retirement funds up front.
Search results for

'Lump-Sum Payment'

  • Lump Sum Versus Regular Pension Payments

    http://www.investopedia.com/articles/retirement/05/lumpsumpension.asp
    ... Employers have various reasons for offering the lump sum payment. Your employer
    may use it as an incentive for older, higher-cost workers to retire early. ...

  • Avoiding A Big Tax Bill On Real Estate Gains

    http://www.investopedia.com/articles/tax/09/property-sale-installment-payment.asp
    ... received each year, this method will allow Hal to remain eligible for tax credits
    and deductions that the lump-sum payment would prevent him from receiving. ...

  • Pension Law Could Reduce Your Payout

    http://www.investopedia.com/articles/retirement/07/payout.asp
    ... consider that the Pension Protection Act of 2006 (PPA) could result in a drastic
    reduction of the amount you had anticipated receiving in a lump-sum payment. ...

  • Live Longer, Retire Younger: Can You Do It?

    http://www.investopedia.com/articles/retirement/07/insureretirement.asp
    ... not include the following features: Death benefit protection - where your beneficiaries
    will receive lump-sum payment if you die during the accumulation phase; ...

  • Selecting The Payout On Your Annuity

    http://www.investopedia.com/articles/retirement/05/071105.asp
    ... The other is taking a lump-sum payment. The annuitization method gives you
    some guarantee of monthly income for a determined period. ...

  • The Foundation Of Structured Settlements

    http://www.investopedia.com/articles/pf/09/structured-settlements.asp
    ... A structured settlement is aa financial or insurance agreement that a claimant accepts
    in the case of personal injury, rather than taking a lump sum payment. ...

  • Why Your Will Should Name Designated Beneficiaries

    http://www.investopedia.com/articles/pf/07/beneficiary_form.asp
    ... 911-Turbo? If you are concerned your beneficiaries couldn't handle a large
    lump-sum payment there are other options. Annuities and ...

  • 5 Ways To Stretch Your Retirement Budget

    http://www.investopedia.com/articles/retirement/07/stretch_retirement_budget.asp
    ... money-purchase and target-benefit pension plans offer employees two options for
    distributing their plan benefits: a lump sum payment or an annuity payment. ...

  • Internal Rate Of Return: An Inside Look

    http://www.investopedia.com/articles/07/internal_rate_return.asp
    ... In almost all cases where a prize winner is given an option of a lump-sum payment
    versus payments over a long period of time, the lump-sum payment will be the ...

  • Explaining Types Of Fixed Annuities

    http://www.investopedia.com/articles/retirement/05/071205.asp
    ... A Tour Through Retirement Plans Overview Fixed annuities can be bought from insurance
    companies or financial institutions with a lump-sum payment (usually most ...

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