In either case, neither banking nor securities regulators seem to have a handle on these companies, which typically offer lump sums to down-on-their-luck military veterans and other retirees who are willing to forgo payments in exchange for a discounted lump sum.

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When the interest rate used to calculate a lump sum increases, the lump sum value goes down.

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As mentioned earlier, when interest rates increase, lump-sum pension values go down.

FORBES: Expert View

"I still get a lump in my throat when I walk into the drawing room, come down the steps into the drawing room, " he says.

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Although history suggests you might do better diving into the market with a lump sum (because, over the very long haul, markets have gone up more than they've gone down), dollar-cost averaging has a lot of appeal these days.

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