Thread regarding AT&T layoffs

I was just let go in May after 23 yrs and we had a financial advisor lined up. I took the lump sum and the 401k and had him invest. I wasn't leaving it with AT&T one second longer than I had to. Our financial advisor also ran all the numbers as a comparison and it was definitely better to take the lump sum.

You pay a 10 percent penalty if you withdraw funds before you are 59 1/2. Roll the cash over into another plan to avoid the penalty.

Big money. No whammies.

Getting advise from an anonymous forum may not be the best path. Please consult with your financial advisor. You also need to understand which Pension plan you are covered by. Management, non-management, Legacy T, or S etc…….. sounds like you need to do some additional research.

Take the Lump Sum and spin into an IRA that grows and works for you. You don't need a CFP in your pocket pinching you for 1%. You're relatively young, so find a balance of 75% equities including Dividend-based funds, and the rest in Treasury Bonds. But, you could just establish a FIdelity SPAXX account in get 5.5% off of the Lump Sum. Leave the Hennessy and Ho-s alone.

Take the lump sum , go to vegas and put it all on black baby !

use the pension lump sum vs monthly pension calculator. This will help you determine which is better.

https://www.calculator.net/pension-calculator.html

Maybe sit down with a fiduciary CFP to figure it.
There are more parameters for your situation that will be ferreted out.

Yes, you might have to pay for a session, but you are rich enough.

This may help. Note that the real answer depends on your personal financial situation/needs, and the assumptions you make about interest rates, life expectancy, and the like ... for me, taking the lump sum is the likely answer, as I have 2 kids I would like to leave something to ...

https://www.calculator.net/pension-calculator.html

Number one. If you have a significant other make sure they are involved with the process and understand the details. Takes a lot of stress out if he/she understands any significant changes that might need to be made including future plans. If you hear “You promised to take the grandkids to Disney for a week”, might as well find a local crack dealer depending on your bottom line situation.

You don’t have to do anything with the money. You can leave it in the pension

" postpone until the nov and interest rate drops..."

Keep in mind not everyone that has a pension are affected either way by interest rate fluctuations. Those that are in a cash balance plan are not impacted in that way (inverse to interest rate- or i.e- interest rates go down, better for lump sum), The cash balance is just what it is.

Take the lump sump but postpone until the nov and interest rate drops. Which can result in thousands of dollars more. Check with Fidelity.

Exactly this and if you can wait for Nov 2025 numbers it should be even better.

Take the lump sump but postpone until the nov and interest rate drops. Which can result in thousands of dollars more. Check with Fidelity.

Another thing to keep in mind is that ATT is actively selling the pension fund to 3rd parties and you have no say in which company controls the pension, or what rules that company lives by. So, your pension could go to an offshore company and your pension is no longer insured by the USA.

sit down with Fidelity and have them run the numbers and explain it all to you

Never, EVER trust the Stink with any annuity! GTFO and get your $ out of the Stink's reach! If you qaualified, and were thinking about taking the company annuity - take the cash balance and invest it in your own annuities.

Don't ever trust the Stink!

Set up meeting with Fidelity. Not that they have a perfect crystal ball on economic conditions 6-7 years from now but can give you a roadmap. They will usually ask you to bring or need some info. IE Social Security info that will make a difference depending on when you want or need to take it. This can be accessed through their website. Some pretty smart people on this site and take any comments that sound reasonable to compare with what Fidelity gives you. Also be realistic with your situation. If your roof is 10 years old it probably won’t last another 30 years and neither will your vehicles.

Most smart financial types I respect advise to always take the lump sum ASAP, and direct transfer roll it into an IRA ...and generally avoiding annuities due to high commissions and fees.

Someone advised me on withdrawing before you reach 65. The interest rate is 4.5% now, you can definitely do better if you rolled it over. I recommend option #1 especially if you have children. talk to a pension specialist in Fidelity first. Some are knowledgeable.

Take your money and run, when you take it roll it in to multiple 20 year guaranteed annuity's, That way if you need a lump some in a few year you can cash out a small one and get cash with out destroying a single large annuity. These accounts can be passed on to family or friends in death where you will lose AT&T pension when you pass.
You might get less then 5,000 a month in your annuity’s but it will all be yours.

What is the over/under on the interest rate necessary to take the $5K/year vs the $450K lump sum? How easy is it for you to get that interest rate? In what year are the two options equivalent? Your Fidelity advisor should be able to give you that information.

I’d do #1!!!! Please keep us posted on what you decide, as we all can learn together; best luck!

I would go with no 2. $60,000 a year plus all your other income is quite nice. Good luck.