Thread regarding AT&T layoffs

“I talked to a few financial planners during that time, but had a problem with the fees some of them were charging. Even with a sizable lump sum, some wanted 1.5 to 2.0% fee based on balanced.”

(OP) Yes, it’s a huge mistake to pay anyone a percentage to manage your retirement money. It’s exorbitantly expensive over time, and completely unnecessary. I opened an IRA with Vanguard. I’m putting the pension lump sum and 401k into it, and will invest in simple index funds — VTI, VXUS and BND.

If market goes up, Athene CEO gets a bonus.
if market goes down, retirees get % reduction in monthly check.
draw you own conclusions.

I retired at the end of 2020. In the few months leading up to retirement, I really agonized over taking the annuity vs lump sum.

I talked to a few financial planners during that time, but had a problem with the fees some of them were charging. Even with a sizable lump sum, some wanted 1.5 to 2.0% fee based on balanced.

I ultimately decided to take the lump sum and go with Fidelity. While their financial website was limited with the company 401k plan, you have full access to it if you roll your 401k to an IRA with them.

Their full access website is amazing. You have access to over 3,000 stocks and funds. It has in depth research tools that allow you to examine stocks, funds, financial planning, etc. They have frequent financial webinars, in fact, I have one this Wednesday.

They set me up in 15 different type of financial investments, so the risk is spread out. I am currently weighed towards equities now, but will visit soon with my advisor to re-evaluate it.

With the exception in 2021, when the market was way down, I have done well and believe I made the correct decision.

The fees have been less than 1%. I take out between 2-2.5% each month. On the website, you to set the % of taxes you want taken out. You can also decide if you want monthly withdrawal to come from one fund, a mixture of funds, or a % from all funds. Their portal is really flexible and easy to make changes. You can do it yourself or they will guide you through it. Anyway, no complaints with Fidelity so far.

One other note. My brother uses a different financial planner from a small firm. They charge him a 1.5% fee, and they even use Fidelity to manage his money. If you decide to take the lump sum, carefully check out their fees and how they plan to manage your investments.

This was going on a year ago when I took a package. Easy decision to take the lump sum and put it in an IRA.

“ ESPECIALLY in states like Georgia and Texas.”

Methinks you have an agenda because these two are successful states, they have a surplus of monies.

Part of the issue is that Athene has an off-shore structure that manages m0st of the annuities. https://news.bloomberglaw.com/daily-labor-report/athene-linked-pension-cases-strike-at-need-for-new-dol-guidance

This makes them a little harder to sue.

Another issue is that Athene is a member of insurance companies that have a voluntary fund to cover risk. With different rules in each state. People living in Atlanta or Dallas would be subject to their states laws concerning insurance companies, and voluntary funding from other insurance companies doing business in that state.

I wouldn't count on AT&T backing any pensions unless they were forced to through PBGC.
I wouldn't count on Athene backing any annuities through funding risk pools, ESPECIALLY in states like Georgia and Texas.
And I wouldn't count on any law in Georgia or Texas supporting retired workers, or any other type of worker at all.

The pension has no cola . So $2k a month in 2024 would still be 2k in 2040. Inflation will eat you alive over time.

I'll be sticking wth original Medicare

Good choice.

If you can afford it go with original Medicare. You can always switch to Advantage if your financial situation changes.

In most states retirees going with Advantage plans are required to pass underwriting etc to go back to original Medicare which is difficult as you age and have more health complications.

I was surplus'd in early 2019. I rolled everything over to Fidelity IRAs. My pension amount really wasn't large and wouldn't be worth much at the time looking down the road 10 yrs, especially with inflation, so not trusting T anymore, I took control over it.

Similarly when I reach Medicare age, and the only option looks like a UHC "Advantage" Plan, Well, I will not trust T more then, and I don't trust UHC any either, so I'll be sticking wth original Medicare...

Glad I got away from these thieving cr--kers called T years ago.

The issue with States guarantees, each one has a different set of rules and many are struggling to fund state employees, teachers, emergency services, etc. retirements. How do you think a private entity falls on that scale for payouts if the insurance company defaults?

Agreed; take the lump sum and roll it into your own IRA or other eligible retirement plan. If you don't have one, set one up now. The best place to start would be Fidelity, because of course, they would love to keep you as a client, but choose any form you want.

Also, I know that T sold existing retirees' pensions to Athene, but I don't know how that affects those who've retired since that sale date, or if it was to be an ongoing transition. (Seems like it wouldn't be as T would want to get additional money for those retiring after 2023.)

ALWAYS TAKE THE LUMP SUM.

I've already spoken to three different fiduciaries:

You'll have more options ie put all of it into a better immediate payout annuity or only a portion and invest the rest back into the stock market.

There are state guarantee agencies that will backstop insurance annuities.
https://www.annuity.org/annuities/regulations/state-guaranty-associations/