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.
Reading other comments, I see this amount would equal to 17 years of payments. There is no right answer. If it were me, I’d go for the lump, but I’m well aware that I am good at managing my own money in the sense that I don’t overspend, no matter what the bank account says. I’m naturally frugal.
I think the main considerations you need to take are: your personality, which you suggest you can’t trust yourself with that much money; on the other hand, the payee’s personality and the unexpected, ie., are they reliable enough to pay monthly or will they owe you? What if they die in a couple years? What if they go bankrupt? Etc. (not sure if there are system failsafes for these scenarios where you live).
I would suggest get the lump, deposit 80% of if or so in a fixed account with a high rate that won’t let you withdraw in a couple years, use the remaining 20% to keep yourself alive until you find a job. Once you get a bit more used to managing your own money you can decide what to do with the rest.