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What is the best choice for a prior employer's pension fund payout at age 56 - leave it or invest it?

Sep 23, 2014 by Mary from Naperville, IL in  |  Flag
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Mary,

There are pros and cons to both options, but it's hard to offer solid advice without gathering more information about the pension and your investment preferences. I'd be happy to help you review your options in detail. Please reach me at ryan.behrends@countryfinancial.com if you're interested.

All the best,

Ryan

Comment   |  Flag   |  Sep 24, 2014 from Rochelle, IL

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John Essigman Level 17

Hi Mary,

I would agree with Ryan that there are many things to consider. As a general rule and if the plan allows it, I would take a lump-sum and roll it over to an IRA or annuity that we can monitor and control. The reason is that many pension plans have failed or are in trouble. The PBGC that insures pension plans is also in trouble. Here is an article that you may find of value and may help answer your question http://essigman.com/blog/?p=204

Here is another article that touches on the subject of pensions… http://essigman.com/blog/?p=167

Don’t do this on your own. Discuss it in detail with a trusted financial professional and let them help you with your decisions and investment options.

Warmest regards

Comment   |  Flag   |  Sep 25, 2014 from Cleveland, GA

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In addition to the thoughts above, you should look to see when/if you have other opportunities to take a lump sum or annuity payment, and what the value would be at that point. For example, you may have one value now, and another value at age 65 (or another age). Depending on the difference (if any), it may make sense to wait and make the decision of lump sum vs. annuity in the future.

Comment   |  Flag   |  Sep 25, 2014 from Exton, PA

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