with layoffs looming considering retiring. Thoughts on the negative if just taking the monthly payments until death vs limo sum which I would run out of money in my lifetime most likely if I did the lump sum.
7 replies (most recent on top)
Someone asked that on an Allstate retiree facebook page once and 99% said take the lump sum to an advisor and let them invest it for you. Most are not even touching principle yet.
DO NOT RETIRE NOW! Do not be afraid of a layoff, especially if you are close to retirement. That is a Godsend. You will get severance & unemployment if you get laid off (and can get your pension). If you retire, you just get your pension.
So you’re saying you’re retirement eligible and are seriously just thinking about this now? You’d have to be living under a rock to not know the consequences to the lump sum amount due to the rise in interest rates (Hint- did not increase). That said and if you are, indeed, living under a rock, then my apologies: Meet with a Certified Financial Planner (consults are typically free- They’re paid approx 1.3% of the investment amount if you go with them) and they’ll go over the numbers with each scenario.
I took a lump sum and am investing it. Get yourself a financial adviser. Totally worth it.
I ended up taking lump sum and rolled it into an IRA with my 401. Wanted to cut all ties as soon as I could. Letting someone else manage the $$. I also went back to work for about 2 years in a related field. But now doing GIG work for extra money.
If you are asking that question at this point in the year, you are a clown. If you were near or at retirement age last year, you should have retired with the lump sum. Now it is probably about 20% less now based on the interest rates that are used for the calculation. If you are taking the monthly payments, there is no impact
Make Allstate pay and manage it. Just get the monthly annuity from them unless you trust yourself to put it into CD’s every 6 months to make a little more money. Of course, taking the money and letting a respectable place manage it for you may be best so you can break ties with this mind bending cult influenced organization for good. .
Talk to a financial advisor. Nobody here knows your financial situation