Should we take a lump sum or the company annuity? - annuity company ratings
My husband wants to retire this year. We can not decide to make the penis (defined benefit) or lump sum payment. I do not think the company time (A) major, but who knows? The sum of security in today's economy?
Annuity Company Ratings Should We Take A Lump Sum Or The Company Annuity?
5 comments:
You can not really answer your question, yes or no. You should really speak with a Financial Planner fee in order to make you the best decision.
But here is an idea to play.
Use what you need, insured for 6 months to live in a regular savings account by the FDIC. You can take a lump sum and invest about 60% to 70% in government-insured CDs pay around 2.5%. You can run in different time scales, from 6 months to 5 years, so you have money to spend or invest every 6 months.
However, we hope your husband will live long. They need money for the long term growth of 2% or 3%. Then, perhaps, take the remaining 30% to 40% and start investing in index funds, low-cost mutual. You dollar cost average, which means 1/24th of the amount of investment and equity every month for 24 months. Or you could do, 1:12 per month for 1 year. Thus, a sudden fluctuations in the short term, not too bad.
At the end ofl Currently, 60% to 70% of their pension funds absolutely safe, while 30% to 40% is invested in long-term growth for 5 years or more.
Sounds complicated, it is. For this reason you need to talk about the speed at which financial planner for the lump sum or the decision, and if a flat rate, defined as the package to serve you for many years.
I wish he would have mentioned the name of the company.
There are many companies that are currently running there.
My grandady worked for Eastern Airlines - together the company.
He never has a cent of rent.
I take the lump sum, even if it poses a risk.
Call Schwab or Fidelity
Open a Roth - or what they recommend.
Buy a 5-year CD at 4% interest rate
Some CDs quarterly payment, the other months.
You can have money in bonds and interest income will be sent directly to your local bank account free of charge.
Move money automatically - or the transfer of the money himself.
They are essentially creating their own income.
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Under the assumption that the money continues to lose value over time, and assuming that your husband is longer for more than 10 years or life, then I think it's better, the lump sum immediately, and you invest in something relatively safe , with a reasonable profit margin. Oil and Gas, Walmart, something. I'm not an expert on investment, these are just my instincts.
Pension. The formula rate are not favorable, in addition to the rent, they are insured, he will continue for as long as you live. A federal pension guarantee corp org, guaranteed pensions, and they pay you if your company folds.
Please seek the advice of a good financial planner. Only they can sort out the details. It is not detailed enough to make the above description is for us an adequate assessment of the situation. There are too many unanswered questions to make an informed decision about us.
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