Thread regarding AT&T layoffs

Coulda, woulda, shoulda... like you coulda, woulda, shoulda saved more, spend less, and prepare for 2020 layoffs as announced years ago?

200k and 12k a year is nothing when you realize it could have been about 500k and 40k a year in about 6 more months, for the rest f your life. a lot of people here are getting screwed here big time.

$200K is really nothing in today's world.

I’ll take it!

$200000 with a conservative 6% return rate is $12000 a year. Not enough to live on but nothing to laugh at. To be a great addition to my retirement fund.

@LPdU I too have a very small pension, haven't found one financial advisor who can make me enough return to have it last a long time. $200K is really nothing in today's world.

Don't buy an different annuity with lump.

Get a fiduciary adviser at Vanguard or Fidelity. Use low fee ETFs.

best,

SS is only indexed for the inflation that the government will admit exists, which is less than half of the real inflation rate. Same guys paying the bills report the inflation rate.

I retired at 55. 37 years as an outside tech.
With a 50% survivor benefit, I'd have to collect the annuity for 22 years to equal the lump sum amount I walked away with.
Not even a decision....take the cash and invest it.
Cut ties.

I personally can't imagine taking the annuity either. Chief reasons for taking annuity seem to me to include: 1) highly risk averse (e.g., can't handle the gyrations of the stock market), 2) don't trust yourself to properly manage a lump sum (e.g., afraid you'll blow it on cars, vacations, etc.), 3) related to #1, most people just don't have enough to retire and comfortably finance a long life, so they feel like they have to opt for the known cash flow.

First is your choices require comparison like picking one home to buy over another. Talk with Fidelity Advisor, Vanguard, and anyone else and have them work up a free analysis. I did this. Then note annuities do not allow inheritance by your children, etc. Once you're gone, it's gone. Next, as said, annuities are fixed and after about 12 years, pay out less than a blend of equities and bonds because inflation chisels away their value. If you receive $50,000 this year and inflation is 2%, you'll need $51,000 next year to stay even. This continues indefinitely and you could run out of money. Talk to those advisers about a blend of stocks and bonds. Stocks protect you from inflation. The S&P 500 for instance has grown about 7% every year since 1926 including the great recession. That keeps 50% of you assets ahead of inflation. Bonds provide a continuous stream of income at the same time. Get a plan worked up and compare.

It’s all about building a STREAM of INOME. Im SS eligible, 2000 @ month. I take a part of my money 250k BUY a annuity(7 years I get my money back)...fixed annuity pays 3.7 per cent....that’s 925.00 @ month. Diversified and spent 100k(down payment) on a apartment complex...1300.00 @ month positive cash flow. I’m at 4200@ month ....I’ve only used 350k of my retirement!! Next a small slice in a Manged Fund for inflationary purposes....the rest will be split into other SAFE investments.(CD’s, Money Market Accounts). I can easily hit 5k a month revenue without sleepless nites worrying about the next stock market collapse. 60k in retirement is like making 85k at work! Subtract SS contribution(5330@ year), Medicare contributions (1246 @ year), state tax(4256 @ year), 401k contribution (5150 @ a year). Lump is definitely the way to go!!

I can’t imagine a scenario where you’d take the annuity unless you think you’ll live forever. Take the lump , and put it in even the most conservative fund and you’ll do merger than the annuity.

Not if you roll the lump sum into a fixed or indexed annuity

Annuities... High commission and high fees. No thanks.

Lump sum is almost always the way to go.
Your rate of return from the stock market on average will exceed the rate of inflation.

Not if you roll the lump sum into a fixed or indexed annuity assuming you don’t need it right away. Some annuities even increase your payout for a period of time. Shop around and good luck.

The annuity pension is subject to inflation risk as the original post indicates, but the lump sum is subject to market risk which can be equally devastating to one's financial well-being. Much depends on your personal situation, e.g., how long do you think you will live, importance of leaving an inheritance, managing the money yourself vs. a monthly check

Also keep in mind that many financial advisors' fees are calculated as a percentage of assets under management so there is a definite benefit for them if you take the lump. That's why it makes more sense to work with a fee-only financial planner who charges a set amount for the time spent working with you to develop a financial plan rather than charging a percentage EVERY YEAR of the assets being managed.

I am struggling with this decision now and it's a tough one. Good Luck!

I would caution each of you to not make financial decisions based on advice on a message board from anonymous non-financial professionals. Annuity vs. Lump sum is not a cookie cutter decision. Speak to a financial advisor to understand your options and make the best choice for your individual situation!!!

Good luck to everyone!

When one only has about $200K in their pension, since they were laid off many years ago, the annuity is the way to go.