So, I’m currently in the process of divorcing my husband, and one of the issues to settle is alimony. I can choose either a lump sum payment or monthly checks (indefinite unless I remarry, with adjustments for inflation). Opinions from people around me vary: some say the lump sum is better because it’s guaranteed, secure, and puts all the money in my hands right away. Others argue the monthly payment is better because it provides stability and consistent support. Personally, I’m leaning toward the monthly option, since I married young (at 20), never worked, and haven’t had much experience managing money. I worry I wouldn’t be “proficient” enough to handle a lump sum wisely.
The lump sum would be equivalent to approximately 210 months. We agreed on this amount because we were married for 17 years and 6 months at the time of our divorce filing. I’m saying approximately because in reality it’s a bit more than that since it’s the “clean cut” option.
In that case I’d personally take the lump sum and invest as much as possible of it into something like an ETF.