When an individual is considering investing in the stock market, there are two main ways to go about it; get rid of your present stocks and get some money in the bank or buy some stocks first and then sell them later on. However, many people are not aware of which is the best way to invest. There is really only one way to do this and that is to get a lump sum of money from a government grant or some other type of funding. But what is the best way to do this? Lets take a look at the pros and cons of each.

For starters lump sum definitely is a much better option then monthly payments. However, payments are not always the best option. There are so many upsides and downsides associated with these type of investments. One of the largest advantages to getting a lump sum of money is that you’ll immediately have lots of money that can be utilized to pay off bills, vacation expenses, etc. However, you do have to remember that there are also tax consequences when getting money from a government grant.

Another advantage to getting a lump sum versus payments is that it can save you a ton of time. Imagine for a moment that you are trying to get a job with a company that is very large. They ask you for a resume and when you send them your resume they immediately contact you with a phone call asking for more information. Once you give them all the information they request they will contact your employer and possibly make you a much larger offer.

The next advantage is that if you are planning on having a long retirement you may not have enough money in your savings or pension plans to retire your current salary at the rate you are currently earning. Even if you do have some money now, it may not be sufficient to live the lifestyle you want or plan for your retirement. So this could be the ideal time to cash out and receive some nice lump sum payment. You will then be able to live the lifestyle you’ve always dreamed of retiring to. The amount of money you receive will depend on your current age and present value of your pension payments and annuity.

One thing that many people fail to realize is that retirement planning is an ongoing activity. The best time to start is while you are young. Once you reach a certain age you don’t want to waste time trying to figure out how you’re going to survive on a pension or an insurance policy. By starting early in your career, you can put away the money for your later years. And as we all know, your earlier years are your strongest years, so the better you prepare now, the better you’ll be prepared for your later years.

In summary, by paying your bills early you will be in the best position to avoid having to pay late fees, penalties and interest on your outstanding bills. This will also help you avoid the extra tax consequences that accrue if you wait until you become retired to begin paying off your debts. Start looking at your financial statements and your income potential today. If you have a lump sum payment to make, take advantage of tax benefits and early retirement planning today.