If you’re wondering how your retirement funds are protected in the case of a lump-sum payment compared to an annuity payment, watch this video for insights from our retirement planning expert Tyson Mavar.
___________________________________________________
#retirement #att #annuity #lumpsum #planning

1. LIKE our Facebook page:
2. VISIT our website:
3. FOLLOW our LinkedIn page for updates:

Disclaimer: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Fees are incurred when assets are under the management of advisors affiliated with The Retirement Group. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice. Securities offered through FSC Securities Corporation, member FINRA/SIPC. Investment Advisor Representative of & Advisory Services offered through The Retirement Group, LLC. The Retirement Group is not affiliated with AT&T. The Retirement Group 5414 Oberlin Drive San Diego, CA 92121 (800) 900-5867…(read more)

LEARN MORE ABOUT: Retirement Annuities

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Q&A for AT&T Employees: Retirement Fund Protection – Annuity vs. Lump Sum Payment

Retirement planning is an essential aspect of one’s financial life, and as an AT&T employee, you might find yourself in a position where you have to make a crucial decision regarding your retirement fund. One of the most significant decisions you will face is whether to receive your retirement funds as an annuity or a lump sum payment. To help you make an informed decision, we have compiled some frequently asked questions about retirement fund protection.

Q: What is an annuity?
A: An annuity is a financial product that provides a regular income stream during retirement. It is typically offered by insurance companies and can be purchased with a portion of your retirement savings. With an annuity, you receive periodic payments, either for a fixed period or for the rest of your life.

Q: What is a lump sum payment?
A: A lump sum payment is when the retirement funds are distributed to you in a single, large payment. This payment represents the entirety of your retirement savings and can be used as you see fit.

Q: How does each option protect my retirement fund?
A: Annuities offer protection against the risk of outliving your savings. With periodic payments, you can ensure a steady income stream for the rest of your life. On the other hand, a lump sum payment offers flexibility and control over your retirement funds. You can invest, save, or spend as you wish, and it may be more advantageous if you have alternative retirement income sources.

Q: What are the advantages of choosing an annuity?
A: Annuities provide a guaranteed income stream for life, regardless of market conditions. They offer protection against the risk of market downturns, as the insurance company holds the investment risk. Annuities also provide peace of mind, knowing that your income is protected even if you live longer than expected.

Q: What are the advantages of choosing a lump sum payment?
A: Opting for a lump sum payment provides you with complete control over your retirement funds. You can invest the money for potentially higher returns, pay off debts, or use it for any immediate financial needs. The flexibility of a lump sum allows you to adapt to changing circumstances and create a customized retirement plan.

Q: What are the risks associated with each option?
A: Annuities come with the risk of inflation eroding the purchasing power of your fixed payments. Additionally, if the issuing insurance company encounters financial difficulties, there may be a risk of losing a portion of your annuity payments. Lump sum payments carry the risk of poor investment decisions or, if spent irresponsibly, depleting the funds prematurely.

Q: Are there any tax implications to consider?
A: Annuity payments are typically taxed as ordinary income, while lump sum payments might have significant tax consequences. If you choose a lump sum, carefully evaluate the tax implications to avoid experiencing a sudden tax burden in a single year.

Q: How should I approach making this decision?
A: The decision between an annuity and a lump sum payment depends on your individual circumstances, financial goals, and risk tolerance. It is recommended to consult with a financial advisor who can assess your unique situation, evaluate your retirement needs, and provide guidance on the best course of action.

Deciding whether to choose an annuity or a lump sum payment for your retirement fund is a crucial undertaking. By weighing the advantages, risks, and tax implications of each option, you can make an informed decision that aligns with your financial objectives. Remember, seeking professional advice before making a choice can help ensure a secure retirement for years to come.