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- Nov 27, 2014
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I have a defined contribution pension plan. My thought was to take the lump sum when I retire, however, I've been educating myself on the plan as I get closer to pulling the trigger and I discovered I don't have to take the lump sum right away.
If I leave the money there, it grows by 4%. So in 5 years my balance goes from about $400k to $500K. Given that this is about 20% of my portfolio, seems like a worthy thing to consider.
I've also thought about turning that money into an annuity, but I know how the group feels about that. Thing is, the monthly annuity grows rather nicely too.
What would you consider in making the decision on whether or not to leave it with the company for awhile versus right at retirement?
If I leave the money there, it grows by 4%. So in 5 years my balance goes from about $400k to $500K. Given that this is about 20% of my portfolio, seems like a worthy thing to consider.
I've also thought about turning that money into an annuity, but I know how the group feels about that. Thing is, the monthly annuity grows rather nicely too.
What would you consider in making the decision on whether or not to leave it with the company for awhile versus right at retirement?