My previous company sent me a letter offering me the opportunity to receive my pension benefit now, approx $72K, as a lump sum single payment or an annuity at age 65. I can have all or a portion of the lump sum payment transferred to an IRA, Roth IRA, or other qualified tax plan. I am 47 now and leaning towards a self directed IRA.

Any suggestions on which company to choose?

Thanks in advance!

5 ...

Report Post

Posted by Crbello4Hiceman

Lurking

Member since May 2011

502 posts

Posted on 10/24/12 at 2:22 pm to lsu1987

Why would you not want the annuity?

0 ...

Report Post

Posted by TheHiddenFlask

The Welsh red light district

Member since Jul 2008

18384 posts

Posted on 10/24/12 at 2:22 pm to lsu1987

So you worked for Pepsi?

0 ...

Report Post

Posted by Broke

AKA Buttercup

Member since Sep 2006

65050 posts

Posted on 10/24/12 at 2:49 pm to lsu1987

You need to see what the monthly benefit will be. Then divide $72,000 by that number and see how many months you get. You may end up better taking the annuity.

0 ...

Report Post

Posted by Layabout

Baton Rouge

Member since Jul 2011

11082 posts

Posted on 10/24/12 at 3:27 pm to lsu1987

Annuities are generally not a very good deal. You've got 18 more years to build up your retirement fund. Roll it over into a qualified plan and then continue to make contributions.

2 ...

Report Post

Posted by BestBanker

Member since Nov 2011

17490 posts

Posted on 10/25/12 at 7:10 am to lsu1987

Similar thread asking about IRA to Roth, with same answer: more information is needed to offer you a proper solution.

And to the "gentleperson" who offered their 2 cents worth on how annuities are not good: Annuities are how pensions are typically structured and guarantee the income for one's lifetime. Blanket statements of assumption are why most people make ineffecient and erroneous financial decisions.

1 ...

Report Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board