Over the last three years we have experienced a multitude of pension buyout offers both from in-force pension payments and lump sum offers for pensions not yet started.
Recently we have just experienced another, and knowing these frequently come in waves, wanted to put this note out to anyone who may be in a position to receive a pension buyout offer.
Trust but Absolutely Verify
In every situation that we have experienced over the last three years, the processing of the lump sum pension is quite different.
Also, the paperwork originally sent with the offer tends to vary slightly to dramatically from the actual offer.
We of course do a detailed breakeven analysis in order to find out if the offer is good, but in order to calculate the offer correctly, the appropriate information is needed.
If you are in a situation of receiving a lump sum buyout offer for a pension or even a lump sum buyout offer for an in-force pension, please trust but absolutely verify all of the details. What we are finding that frequently the original offer may have inaccurate information making for an impossible correct decision of acceptance or decline.
This is another subject that we ask you may share with other individuals that we may not know that might greatly appreciate or need this knowledge. So please share at your leisure.
Have a great “Trust but Absolutely Verify that Pension” day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
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