Hi All,
DH’s pension is being sold by megacorp to an retirement services/annuity company. We have a month to decide if we want to take a lump sum or let it roll to the annuity company.
Lump sum now is $443k Annuity with 100% survivor is $1298. No COLA
Lump sum at 65 is $745k. Annuity with 100% survivor is $4139. No COLA
If we don’t take the lump sum now we can take the money or annuity anytime between now and 65 years of age.
Part of me wants to let it roll to the annuity company as sort of an “insurance policy” for our future if we wait until 65 to take it. On the other hand if we wait and decide to take the lump sum at some point in the future the amount will go down as interest rates rise which I’m assuming they will. If DH passes before we collect anything I would get half of the lump sum or the annuity.
We have children and it would be nice to leave them this extra money if something should happen to us. Our other investments include $1.2m in retirement accounts and $7m in taxable accounts. WWYD?
DH’s pension is being sold by megacorp to an retirement services/annuity company. We have a month to decide if we want to take a lump sum or let it roll to the annuity company.
Lump sum now is $443k Annuity with 100% survivor is $1298. No COLA
Lump sum at 65 is $745k. Annuity with 100% survivor is $4139. No COLA
If we don’t take the lump sum now we can take the money or annuity anytime between now and 65 years of age.
Part of me wants to let it roll to the annuity company as sort of an “insurance policy” for our future if we wait until 65 to take it. On the other hand if we wait and decide to take the lump sum at some point in the future the amount will go down as interest rates rise which I’m assuming they will. If DH passes before we collect anything I would get half of the lump sum or the annuity.
We have children and it would be nice to leave them this extra money if something should happen to us. Our other investments include $1.2m in retirement accounts and $7m in taxable accounts. WWYD?