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Retirement funds
Old 03-21-2008, 02:16 PM   #1
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Retirement funds

OK.... some opinions from the forum requested... I have not decided what to do yet and want some other thinking...

I was 'let go' at work... so today I got in the mail a form about my cash balance account... it is about 8 to 10% of net worth... and most all of what I consider 'bonds'... (a bit of JSM I bought when it was yielding 8.5%)...

My OPTIONS...

I can keep it in the account and earn 1% higher than the 1 year T-Bill rate in October of the previous year.... with a 4.5% minimum

I can roll it over....

I can choose one of 27 annuities (yes... this is shocking to me... 27 different options!!!)... which I am not going to do...

Now the kicker... there is a lawsuit against the company saying the discriminated against the 'older' employees... but the judge has said if you leave the plan, you are out of the lawsuit and will receive nothing IF there ever is anything... now, they said they do not think they will have to pay anything, but who knows....


So, what can I expect for 'long term' yields, such as maybe buying some more JSM or something similar...

Or just leave it alone and see what the lawsuit does

Thanks...
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Old 03-21-2008, 02:19 PM   #2
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Originally Posted by Texas Proud View Post
OK.... some opinions from the forum requested... I have not decided what to do yet and want some other thinking...

I was 'let go' at work... so today I got in the mail a form about my cash balance account... it is about 8 to 10% of net worth... and most all of what I consider 'bonds'... (a bit of JSM I bought when it was yielding 8.5%)...

My OPTIONS...

I can keep it in the account and earn 1% higher than the 1 year T-Bill rate in October of the previous year.... with a 4.5% minimum

I can roll it over....

I can choose one of 27 annuities (yes... this is shocking to me... 27 different options!!!)... which I am not going to do...

Now the kicker... there is a lawsuit against the company saying the discriminated against the 'older' employees... but the judge has said if you leave the plan, you are out of the lawsuit and will receive nothing IF there ever is anything... now, they said they do not think they will have to pay anything, but who knows....


So, what can I expect for 'long term' yields, such as maybe buying some more JSM or something similar...

Or just leave it alone and see what the lawsuit does

Thanks...
Sorry to hear that you were let go.

Can you leave it in the account for a year or two, and then roll it over later? That is what I would probably do, in your shoes, since it seems like a reasonable fixed income type investment. The market is really volatile right now, and besides, maybe you would get some $$$ from the lawsuit.
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Old 03-21-2008, 02:23 PM   #3
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Worst case is you leave it and earn 4.5 percent minimum while you wait for the lawsuit to perhaps be settled. I would do that--not a bad rate of return imho.

Also sorry about your being let go.
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Old 03-21-2008, 06:48 PM   #4
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Really sorry to hear that you were laid off.

Given the pending lawsuit I would leave it where it is for the year. Presumably it has always been counted as part of the AA in your overall portfolio, so unless you plan to change your AA, you would be moving it into funds in the same class of assets so the chances of doing a lot better performance wise is quite low.
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