Do not fall victim to Balckrock and ATT. Roll that pensions over and place into dividend focused portfolio and dust the pensions returns 2-3X annually.
13 replies (most recent on top)
Anonymous message boards are terrible places to get financial advice. Pay a fee-only, 100% fiduciuary adviser to look at the details of YOUR situation.
That's great advice if you're a financial m0r0n who's making it harder than it needs to be.
yeah I would get your pension out of the hands of whoever the flavor of the month pension manager is. get it in you control and not theirs trust me you won't regret it I did and have tons more money now than if I left with the liars and thieves.
Oh yeh. Roll you 401K into that IRA too, when you bail out.
The only reason to keep it in a 401k is if you are contemplating bankruptcy. 401k has higher hidden fees.
Yes, roll your lump payout into an IRA.
Vanguard probably has the lowest fees for their products, Fidelity arguably has a better user interface.
It will be a good time to buy bond ETFs for a while, until the Fed starts cutting rates.
KISS: use a few low fee ETFS for 60/40. More or less:
45% US stocks eft, like VTI
15% Foreign stock etf, like VXUS
25% “total” US bond. like BND
15% ”total” Foreign bonds. Like BNDX
"Interest rates are at 5%
Take lumpsum and pay off the home"
- The lump will be 100% taxable as ordinary income if you do that
- Interest rates will probably start to head down this year
- My mortgage is 2.625%. Why would I pay that off?
- If you don't continue working, it's far harder to access the equity in your home, so you have no access to cash.
Anonymous message boards are terrible places to get financial advice. Pay a fee-only, 100% fiduciuary adviser to look at the details of YOUR situation.
Interest rates are at 5%
Take lumpsum and pay off the home
- You are a total fool if you trust the Stink with your pension.
- You are a total fool to keep YOUR money in the Toxic-T saving account. Look at the crazy rules T imprisons your money with so they can keep their grubby corrupt hands on YOUR money. Move it to a Fidelity or other provider roll-over account and be divorced from the Toxic-T locks.
- I could not believe the way Toxic-T restricted my access to my funds so they were unacceptable to me after my retirement. Took months go go through their hoops to slap their hands off of it.
The Stink is a crook - so treat him like he is!
If you co-mingle these two amounts into one IRA my state will tax the entire amount as it is distributed to you each month since they can no longer distinguish the original sources.
Then do one rollover IRA for each.
Since many employees seem clueless about their benefits, I would find a financial advisor to help you out.
Just a word of caution. When moving your 401k balance and taking a lump sum payment in lieu of a pension/annuity to an IRA, make sure you check to see how your state taxes each source. In my state they do not tax pension money but do tax 401k funds. If you co-mingle these two amounts into one IRA my state will tax the entire amount as it is distributed to you each month since they can no longer distinguish the original sources.
Once your off payroll (retire, or leave the business) take the lump sum and reinvest into Rollover IRA.....
Most likely have to wait until after you leave. But beyond the returns, you also want to get it out of there in case they freeze the lump sum option at some point, or they sell it off and another company does.
Some pensions were recently sold. Not sure if any rules changed for those folks.
Can you do that with your active pension or is that only if you are retired/off payroll?