To the Good Folks, be careful with annuity investments as once you lock in there is no turning back. For myself took the lump sum plus my 401K and rolled the two together in a IRA. Good luck Good Folks of Verizon.
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Annuity starting to look better after these past few days.
We must be talking about 2 different annuity calculators. I entered in the dollar amount that I will be using to purchase the annuity( which in my case was the total of my lump sum buyout). Both mine and my spouses ages. I purchased a fixed annuity with a lifetime monthly payment ( same as the Verizon pension) and 100% survivor benefit. It also has a cashback benefit so that if my wife and I die prematurely, there will be some cash left for my kids. That's something the Verizon pension doesn't have. You should really speak to someone at fidelity. They will give you the real current monthly benefits available today. When I purchased mine, It was paying over $200 per month higher than the Verizon annuity plus the added benefit of the cashback for my beneficiaries if my wife and I die sooner than the next 18 or so years.
Fidelity annuity. I found the annuity calculator. It is several thousand less then the company annuity plan. Also fidelity’s calculator only gives you up to 20 years. That’s probably not going to last long enough.
To answer the question, of what company did I purchased my annuity from? I purchased from National Integrity Life Insurance Company. I purchased through my financial advisor at Fidelity. Fidelity only deals with top rated companies. The rates change constantly. They will tell you what A rated company has the best rates currently available. There is an annuity rate calculator on the Fidelity website that will give you an idea of the current monthly income. If you purchase a fixed rate annuity through Fidelity, there are no fees. Whatever the quoted monthly payment is, That's what you will receive.
Lump Sum - the monthly Pension amount is fixed and does NOT increase with inflation annually. Properly invested the LUMP SUM in the market over time, you can use these funds along with Social Security and other IRAs to manage your retirement lifestyle monthly expenses and travel. And when your time on earth has expired, your family will obtain most if not more of the initial Lump Sum based upon total net worth! Life is wonderful after Vz Career. With the Pension, the monthly $s move only to your spouse and then $0 once they pass. So, your children get Zero $ with a Pension. If you plan to only life 15 to 20 or more years in Retirement, consider the LUMP SUM!
To the person who took the lump sum and bought an annuity, what insurance company issued it? I can't find the same annuity (no market risk) that pays more than Verizon's.
If u take lump sum roll it over to an IRA to avoid paying taxes on that lump sum.
I took the lump sum and bought my own annuity. I get a couple of hundred dollars per month more than Verizon plus 100 percent survivor benefits for my wife and a cash out benefit for my kids if my wife and I die. The Verizon pension is managed by prudential insurance co now so it's not really different than if you buy your own annuity from an insurance company......I invested my 401k in the market. You don't want to risk everything.
These responses are all over the map , like they should be . Talk to a financial guy and figure out your own situation. What’s good for one , no good for the other .
Taking the annuity. No heirs and a healthy 401K. This is a diversification strategy for me; guaranteed return. I'd have to make 5% a year to match the annuity; Dow down almost 10% from its high. Not trusting the next four years in the market, maybe longer.
I took the lump sum, had my financial advisor invest for me and diversify my portfolio accordingly, she chose better investment options that Verizon with low/minimal fees. One thing to keep in mind about an annuity once you lock in your monthly payout, there is nothing factored in for inflation going forward, so the same amount you start receiving today is what you will be receiving 5, 10,15, 20 years from now on.
Take the lump sum , and 401 . Don’t trust VZ with future pension moves . They are slowing removing themselves from the equation
The buy out is so low. If you take the lump sum and live off the standard rate of 4%, it’s about 11 or 12k less per year then the annuity. Even if you take 5%, it’s still about 8 or 9k less per year.
not a chance.
- by taking a lump, you can invest it and generally come out ahead over your lifetime
- by taking a lump, you can leave what you don't spend to heirs
- by taking a lump, you remove Verizon from the equation completely (they can and have sold off pensions)
Speak to your financial planning about the best course for you. I'd think the only reason to take the annuity is if you don't think that you can manage the money yourself. However, if you choose the lump, you need to time it well based on interest rates. Again, speak to your advisor.