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Author: Scotty Byrne

Selecting The Payout On Your Annuity

Selecting The Payout On Your Annuity

For some investors, an annuity can be an appropriate part of a sound financial plan. However, one feature of annuities that is commonly misunderstood is payout options. Here we define these options, how they are calculated and how they are taxed. Phases of an Annuity The two phases in the life of an annuity are the accumulation phase and the annuitization phase (or payout phase). During the accumulation phase, you can add funds to your annuity contract by depositing cash,…

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Selecting Retirement Payout Methods

Selecting Retirement Payout Methods

One big change that retirement brings is you begin to take income from your defined benefit pension or defined contribution plan. You have to consider various payout methods, or the ways in which the income will come to you. The right alternative for you, or you and your spouse if you’re married, depends on a variety of factors such as your other sources of income, your comfort level with investment risk and even your health. Pensions When you retire from…

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How To Compare Pension Options – Lump Sum Or Annuity

How To Compare Pension Options – Lump Sum Or Annuity

How you choose to receive your pension is a big decision. You can’t change your mind, and your choice will impact your level of retirement security for the rest of your life. If your company gives you options, you need to carefully weigh out the pros and cons of taking a lump sum versus receiving an annuity distribution before you make this permanent decision. Some companies require you to take your pension plan in the form of an annuity payout;…

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Lump-sum payment or monthly pension

Lump-sum payment or monthly pension

Faced with mounting pension costs and greater volatility, companies are increasingly offering their current and former employees a critical choice: Take a lump-sum payment now or hold on to their pension plan. “Companies are offering these buyouts as a way to shrink the size of future pension obligations, which ultimately reduces the impact of that pension plan on the company’s financials,” says John Beck, senior vice president for benefits consulting at Fidelity Investments. “From an employee’s perspective, the decision comes…

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Lump Sum or Pension Annuity

Lump Sum or Pension Annuity

Is a lump sum offer from an employer a better choice than a pension annuity for life? The former provides an immediate up-front amount (say $300,000), but the pension annuity gives you a stream of payments for life (example: $1,350 per month). A number of employers dangle a lump sum offer to employees in part to remove future liabilities from their balance sheets. It’s tempting for employees to select the lump sum as an obvious choice and forgo the pension…

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Lump Sum Versus Regular Pension Payments

Lump Sum Versus Regular Pension Payments

So you’re on the verge of retirement and you’re faced with a difficult choice regarding your company-sponsored retirement plan: Should you accept the traditional, lifetime monthly payments or take a lump sum distribution? Understandably, you might be tempted to go with the lump sum. After all, it may be the largest single disbursement of money you’ll ever receive. Plus, you may like the idea of having more control over your investments. Before you make an irrevocable decision about your future,…

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When You Should Take the Lump Sum Over the Pension

When You Should Take the Lump Sum Over the Pension

If you have worked at a company for 10 years or more, one day you may very well be faced with the following situation: Your company is offering you a chunk of money or a perpetual monthly amount of income to either retire today or to help you “retire early.” So, should you take a monthly pension, or a large one-time lump sum (typically rolled over into your IRA)? Which one is better for you in the long run? When…

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Lump sum or the annuity – here’s which one to choose if you win the lottery

Lump sum or the annuity – here’s which one to choose if you win the lottery

An anonymous South Carolinian has stepped forward as the winner of the most recent $400 million Powerball lottery. Lucky guy. Now comes the hard part. We’ve taken a look into the point at which you should actually care about the Powerball lottery, factoring in the relationship between participation and jackpot size. But what happens when you actually win? Normally the answer appears to be “take all the money up front immediately and subsequently squander every available penny on frivolous crap.”…

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Structured Settlement vs Lump Sum

Structured Settlement vs Lump Sum

Many civil lawsuits, especially personal injury cases, are settled by both parties before they go to trial. This course of action is taken in most cases in order to avoid the high costs of a trial and to provide a quicker resolution to the suit. Once a dollar amount for damages is agreed upon, payment is made using one of two arrangements: a structured settlement or in a lump sum. Both plans have pros and cons depending upon individual circumstances….

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Annuity Settlements – Some Necessary Facts

Annuity Settlements – Some Necessary Facts

What is annuity settlement? An accurate answer to this question can really help you a lot in making a good amount of money for yourself with the help of various investment plans and settlements. Annuity settlement is mainly an agreement in which the company pays a particular amount of money to the individual for a particular time period. There are some essential documents also that are needed in such kind of programs and they are: an annuity application, an annuity…

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