Do you have a choice between a lump sum and a monthly pension at retirement? Which should you choose. Here are three factors that you should consider before you decide.
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Retiring next year at the age of 50 after 21 years. I will be taking a 15% partial lump sum option because that is the max they allow. Is there anyway to use part of the plop to pay my house off and not get taxed on the distribution of those funds.
Took the lump, invested in annuities, as it worked out, I make $200 more a month income, plus if we both pass, anything left in the annuities gets passed to kids, not so with the pension
Are u able to change to a lump sum if u have already started to collect monthly?
Thank you.
You have people l
Take LS before a recession coming.
Yeah but lump sum would only lost a few years and pension is for the rest of your life
When human nature is factored in, it is a bad idea for most people to take the lump sum. 70% of lottery winners are broke within 7 years. It is likely the same for people who take a lump sum from their pension. None of the people who receive a large amount of cash either from the lottery, a pension, an inheritance or a lawsuit plan on going broke, it just happens.
i have the option and want to take the lump sum can you tell me what taxes come out and how do i avoid the 10 % fee because im 56 not 59 ??? im in california
I'm glad I came across this video, I ask politely ,does anyone know how I can go about growing $50k dollars I have? I am very open to all suggestions and recommendations. God bless
You can literally watch 100 videos on this topic, and it’s 50/50 on what to do : annuity vs lump. I think the 6% return rule is a solid consideration, I know there is the “ nothing left for family” if you take the annuity, but I don’t see how you can spend your retirement watching your return on your money everyday
Dumb. Never take a lump sum too early
I just filled out the paperwork for my late husbands pension. Given a choice of a large payment .. at least for me.. each month or half of that for the rest of my life. Both options have good ideas, but going for the lump sum . I just dont trust the company he worked for since they been wanting to get rid of pensions for yrs now.
In about 9 yrs I'll be 62 and probably calling it quits. When that time comes, I'll see what my monthly amount will be, as opposed to what they offer as a lump sum. If the monthly amount adds up to a yearly amount of more than 6.5 percent of the lump sum amount, then I'll stick with the pension. If it adds up to less than that, I'll take the lump sum, roll it over into an IRA and buy a bunch of solid dividend stocks, added to my 401K dividend stocks, and live off of that till my FRA at 67 when I throw SS into the mix. I don't think I have to worry about my company not paying the through the life of the pension bc they are a solid utility company that's been paying pensions for more than a hundred years without a skip. But for me I kind of how I will have to go with the lump sum because then I'll leave a little more for my family when I'm six feet under.
I have a University plan that I can take a lump sum from, it is in a state with extreme financial difficulties (hint: state name sounds like Ill – Noise). The only rub to taking the lump is that 50% of our health insurance would be covered(I was there 10 years) BUT if reform comes and they reduce benefits I'm stuck with an annuity and not the flexibility. So guess which way I'm leaning.
But how do you get to the books to see if the pension is solvent enough to pay the obligations for 25-35 years? If my pension payout is 8 percent it makes the decision much tougher without all the info on ability to pay and insurance backup
Hey Derrick what age can you claim your lum some social security benefits
Your not guaranteed anything…… take the lump sum!
My friend had a pension. GM went bankrupt and defaulted the plan. My friend only gets half of what he was promised. Take the lump sum.