After almost three decades in the financial industry, it has up to this point, been safe to say:
“Once you begin that pension, you will never have a chance to change it.!”
Not anymore !
In force Pension Plans – offered buy outs
Frequently pension plans that are not paying (beneficiary has not started monthly benefits) are offered buyouts. We have never seen in force (benefits are paying currently) pension plans being offered a buyout, until now, and go figure, we have run into two in the last month.
Don’t automatically just take the cash – it is likely a big sum of money compared to what you may be receiving on a monthly basis, BUT frequently the offer is skewed towards a greater benefit for the company.
Carefully review EVERY detail and how it relates to your situation – longevity, continuity, heirs, beneficiaries, age, financial need are just a few items to consider – call us before you make ANY moves.
Be very skeptical of any company that is not directly associated with your pension plan– The more hands between you and your money, the less you may ultimately receive.
Lot’s of scams and abuse – Along the line of the prior point, there have been many scams as well as abuse in this part of the financial world, laws have begun to prohibit many from taking these type of benefits – be careful and check the facts.
Call us –While there are very distinct times when one should or should not accept an offer such as this, most fall in the gray area. We have the ability to reverse engineer the offer to see how it stacks up as well as dissecting all the fine points of the offer!
Have a Great Day!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225