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Investments glossary

Lump-Sum Payment


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Quotes of the day:

Business strategies can interestingly be assimilated with medicinal drugs. There are no better or worse strategies. There are only adequately adopted business strategies or inappropriately selected and implemented strategies.

— Abderrahman Hassi

A lump-sum payment is an often large sum that is paid in one single payment instead of broken up into installments. It is also known as a bullet repayment when dealing with a loan. They are sometimes associated with pension plans and other retirement vehicles, such as 401k accounts, where retirees accept a smaller upfront lump-sum payment rather than a larger sum paid out over time. These are often paid out in the event of debentures.

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