For all those who have been retired for a year or more, did you take a lump sum or monthly pension and how is your choice working out? Anything different you would have done in hindsight? Anything you wish you knew then when making your choice that you know now?
14 replies (most recent on top)
I had a craft and Management plan. I took full lump on craft and partial lump & annuity on Management side. It is nice having a monthly income and knowing you have money invested in the market. Do what is right for you and your family and trust, you will be ok. Good luck!
My wife and I took the Annuity, flanked by our Social Security checks. Lump Sum would have looked nice on paper but just one more thing to fret over when markets take a left turn. We are otherwise financially spread around.
No kids, but a few relatives that won’t be disappointed when the time comes, with the exception of that one nephew who never repaid the $3K loan then had the “nuts” to ask for another $3K!! Left him $3. In the Will! Too much?
Like it’s been said, it depends on your situation and what lets you sleep at night. Let a CFP help you get that sleep.
Depends on your situation and the advise of your financial planner. I’m not retired yet but I do have a fiduciary financial advisor who is a fee only not a commission based planner. There’s no conflict of interest with a fee only advisor. Commission based advisors are salesman.
It depends! How long do you think you will live? AT&T will guess based on your age, s-x etc... but that is only a guess. If you are 62 now and think you will live to 96, what do you think your rate of return will be on your investment (assuming lump sum) over the next 34 years?? When do you need the money? It's all very very individualized what's best. Most of the major assumptions (estimated age at death, immediate and long term $ needs) are things ONLY you can say. Financial planners can help with that, but remember, in general, they are sharks! A lot, a lot of sleazy financial planners out there want a piece of YOUR pie!!!! They all say they are looking out for your best interest - that's when you have to hold onto your wallet. Google "FIP LLC Lawsuit" for a good example of what kind of c-ap they try to sell.
Depending on the financial advisor and your situation you may receive different answers. Just remember that some financial advisors are there to make money so they may advise a lump sum because it is more beneficial for them than to you.
I shudder when I hear people say give your money to a financial guy. 2008 should have taught us all a lesson....I have bought some rental property and it is returning 15-20 per cent. I will purchase a annuity with about 250k(will never go BROKE) ....a small amount in the market for inflationary purposes. I have talked to MANY that have lost LARGE sums giving it all to a investment guy!! Start reading and planning!! Real estate is a SOLID investment! Use that lump to spring board you to financial freedom and look for another job. Good luck!
I retired last Sept and took the lump Doehave it and my 401K invested with my financial planner and it is doing good. I have taken a monthly amount much higher than the pension would have been, and I have withdrawn a good amount of money, and I have more now than I did when I retired. I know there will be a recession one day but I'm glad I took my money and put it in an IRA. I have somewhat conservative investments because I'm more concerned with keeping what I have without the risks. You should talk to your planner and tell them what you have in lump sum and 401k. My wife and I are glad we did what we did. One thing I really like about the lump sum is that if we keep it as long as we live we can give it to our daughter when we pass. That is one of the things I really like about the lump sum. You can place it in your will and give it to others.
YOU MUST TALK TO A FINANCIAL ADVISER. do not use thelayoff for this - i guess reading things is ok, but go talk to a pro
I took the lump sum.
Lump sum throw it in an ira and invest in the S&P 500. You will do good. Talk to money man first.
I think the bitterness and "don't rely on AT&T" sentiment is emotional and not necessarily rational. That said, many respected financial experts say to always take the lump, you'll wind up better off in the long run.
Easy choice... Take lump sum. You dont want ATT in control of your money. Roll over to IRA
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Lump. That and 401k invested with a financial planer.
7 figures.
Retired after 37 years as a tech.
I make almost as much now as I did working.
No way I’m relying on the company for a monthly check.