Options

[Bazile]

£ 15000 - Yearly payment
£ 36000 - one off lump sum

or

£ 13000 - Yearly payment
£ 65000 one off lump sum

Am i thinking correctly as follows-

If i chose the higher lump sum , i would receive £ 29000 more now ( but with a lower yearly payment )

The higher annual payment would be a difference of £ 2000 more , and it would take 14.5 years to get the extra £ 29000 i would get now

I don't know if i've asked the question i've got in my head

Is the above correct and what do you think is a better option - higher yearly payment or higher lump sum now ?

[ubasses]

If you invest the lump sums in an ISA ( which will take more than 1 year due to limit) the income will also be tax free. If you are married use can use your wife's allowance as well.

[fiction-factory]

Anyway the first £1000 of interest pa is tax free for a basic rate tax payer so unless you took the maximum lump sum and put it in a high interest, non ISA, account, tax on interest probably wouldn't be a factor unless you already have savings

[davebro]

"What - you blew it ?"

No - on the advice of a financial adviser (experts eh!) I took out an insurance with-profits bond which performed very poorly.