Have you been offered a pension buyout? You need to decide if you should take the lump sum of money or continue to receive payments for the rest of your life. There are several issues you need to consider before deciding.
Generally, your payments end once you and/or your spouse dies. Your children do not receive any of the money. However, if you were to take the buyout money and invest in an IRA, your family members will receive any money you do not use. Also, you control the taxes when you rollover, based on the amount you withdraw and the date you begin withdrawing.
If you’re pension checks are not indexed for inflation, you’re losing out. If that money was in an IRA, you could invest it and reap the benefits. Finally, there’s the chance your company might have to lower your pension checks. You may easily diversify with an IRA, however there are risks that come with investing as well.
To better help you decide if a pension buyout is right for you, talk to an expert. The IRA Financial Group is the leading facilitator of self directed IRA structures. Contact them today at (800)IRA-0646.