Should I Take My Defined Benefit Pension As A Lump Sum Or Annuity?

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  • Опубликовано: 10 авг 2024
  • TJ has a defined benefit pension plan that he can take as a lump sum or annuity. Wes helps TJ crunch the numbers and find the best path for retirement.
    Original airdate: April 30, 2017 - Hour 2, Call 1.
    Wes Moss is the host of MONEY MATTERS - the country’s longest-running live call-in, investment and personal finance radio show - on News 95-5FM and AM 750 WSB.
    Send me your questions directly at bit.ly/3dPKcvd (contact box in top right corner)
    You Can Retire Sooner Than You Think bit.ly/3kiRhXJ
    Money Matters with Wes Moss podcast spoti.fi/3jk9wL8
    or on Apple Podcasts apple.co/3kwKvhj
    Twitter: bit.ly/2HqnWfe
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    Check out my website for more financial tools and articles: bit.ly/3dPKcvd
    Please note, this information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. There will be periods of performance fluctuations, including periods of negative returns. Past performance is not indicative of future results when considering any investment vehicle. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

Комментарии • 22

  • @ShoelessNomadThailand
    @ShoelessNomadThailand 4 года назад

    Wes I'm in the UK just love your channel

  • @Dirty__Dan
    @Dirty__Dan 4 года назад +1

    Solid advice. No money reserve take the lump sum. Already have a war chest then take the annuity and count it as further diversification.

  • @tedsterrett7204
    @tedsterrett7204 4 года назад +4

    I've been offered a lump sum or an annuity and the company that I work for is pushing me towards taking the lump sum by manipulating the numbers based on my age and tax status as it relates to the amount that I will receive. I don't have any liquid assets like the gentleman you spoke with, so I think I should take the lump sum and invest! Yes Mr. Moss I do want to retire sooner rather than later, life is too short to continue to make others rich now it's my turn. I'll be the first in my family to be able to retire, the rest of my family is either dead or dead broke!!!

    • @ariefraiser140
      @ariefraiser140 3 года назад

      Hope you retired as soon as you could. When most people's time to leave this life comes I seriously doubt one of their regrets will be not working longer to make more money.

  • @jackmasden244
    @jackmasden244 4 года назад +4

    This man has millions and he can't seem to figure out what to do with 138,000?

  • @stephtraveler7378
    @stephtraveler7378 4 года назад

    Great advice and shorthand math trick. Mine only returns 4% give or take. But, I'm significantly younger. ie. starting age for annuity. guess I'm taking the lump sum.

  • @DannyGmusicc
    @DannyGmusicc 4 года назад +3

    Hoarding money is an addiction, every option is ok no need to worry about the pennies

    • @ariefraiser140
      @ariefraiser140 3 года назад +1

      Amen brother. The guy is already a multi millionaire. Any choice he makes here isn't going to change his life one bit. If social security and this pension were his only source if retirement income all the agonizing over what to do with it would make sense.

  • @M.Campbell
    @M.Campbell 4 года назад

    The 6% test is very helpful.

  • @joeblow9295
    @joeblow9295 4 года назад

    will the trustee to trustee pension rollover exceed the $7.000max I R A contribution for 12 months

  • @rajbeekie7124
    @rajbeekie7124 5 лет назад +2

    It all depends on other assets the man has. If the man has limited wealth then the annuity is the way to go. This man has other income streams that can withstand a market shock.
    In this man's case, it seems it is best to take the lump sum. When he and his wife die the lump sum balance is there to pass on to the kids and grandkids. The annuity option leaves nothing.

    • @berniecelee5062
      @berniecelee5062 4 года назад

      No one can know when death will come. If death comes early, the lump sum would have been the better choice. He didn’t asked about health of the couple. How long did your parents live? annuity is usually not indexed.

    • @ariefraiser140
      @ariefraiser140 3 года назад +1

      I don't think he can go wrong either way. The gentleman has $2 million and between he and his wife around $5000 a month in fixed income. He can take the monthly payments and adjust his investments in his $2 million portfolio from a conservative to more aggresive investment since hus gauranteed income increased. He can take the lump sum and invest it with the $2 million.
      Nice problem to have.

  • @MarcP5267
    @MarcP5267 4 года назад

    Take the annuity excellent return.

  • @joeblow9295
    @joeblow9295 4 года назад

    will the trustee to trustee pension rollover exceed the $7.000max I R A contribution for 12 months

  • @joeblow9295
    @joeblow9295 4 года назад

    will the trustee to trustee pension rollover exceed the $7.000max I R A contribution for 12 months

  • @joeblow9295
    @joeblow9295 4 года назад

    will the trustee to trustee pension rollover exceed the $7.000max I R A contribution for 12 months