In this video, Brian helps to answer the question,
How do you know if a lump sum pension buyout is right for you?
The first step is to ask yourself, do you need the income from the pension?
If you don’t, you may want to rollover the lump sum benefit into an IRA account.
If you do need it, find out what the payout amount is and check with commercial annuity carriers to see what that can buy in a lifetime annuity. If the annuity payments are higher, take the payout and then buy your own annuity payment stream. If the pension benefit is higher, keep the pension.
It’s that simple.
Remember, it helps to have a retirement road map so that you can easily answer these questions. Contact us today to meet and discuss your options with a Wealth Manager.