Hi all, looking for some advice on HON retirement. I left last year and had the lump sum pension plan (6%), Am I better off waiting until retirement age (20ish years) to get a single life annuity or just rolling this over to an IRA as a lump sum now?
Thanks!
you're better off rolling over the lump sum into an ira.
Take the lump sum
Consider that if you wait for Honeywell to pay out that your pension benefits will remain on their balance sheet until then (20 years you say). Simple question, how do you feel about Honeywell keeping their pension promise for the next 20+ years vs getting the money and managing it yourself now?
Sometimes you get what you pay for and asking for financial advice is right up there with something you shouldn't do. No one here knows anything about your risk tolerance, where you current stand in your progress towards your financial goals. People who pick index funds are just following main stream media advice that is not very specific. There are many financial product that provide a variety of benefits. A CFP is a good start, but they are not cheap, so it depends on your situation if it's worth spending the money.
Definitely consult a good financial advisor. I agree, steer away from annuities. And if you have any doubt about taking the lump look at GE and their underfunded pensions and being at risk. You never know if a company is going to endure.
There are good comments in the previous posts. I would recommend you spend several hundred dollars up front and discuss your financial situation with a local certified financial advisor with fiduciary responsibilities. With the correct investment strategy you can easily triple (or a lot more) your pension payout over the 20 years or so until your retirement. My personal opinion is to stay away from annuities, but that's just me.
I spoke with my fiduciary about this very thing last year because my instinct was to take the lump Doewas surprised that their advice supported that instinct. Their advice (summed up) if you want to be sure you are getting everything you have coming to you, get the lump sum.
No one knows what the future holds in terms of companies honoring pensions or, in terms of each of us, if we will be here to collect.
Take the lump sum, roll it into your managed fund, and let it get to work for you.
I'm keeping my Honeywell pension plan. Most of us near retirement age already have a sizable 401K balance at this point in our lives. I have most of my 401K in the S&P low fee index fund. That's a lot of risk so the pension plan helps even the risk out.
When I retired (RIF , thank you for that honeywell) i also rolled over to an IRA. i did mine at Fidelity Investments which I now have them manage. You tell them how aggressive or safe to be investing, the fees are based on your total investment. You should interview different companies to see who you are comfortable with.
I retired and was in the same 6% pension plan. I got a lump-sum and rolled in into a IRA at Charles Schwab. I suggest the same for you. I would not get an annuity unless you thought you would live another 30+ years. If you don't like to manage individual stocks, consider a few EFT's.