Tag Archives: Lump sum

Attention all Pension Lump Sum Buyout Offerees

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.



Something never seen in 28 years – Now happened twice in a month – Pension Offer

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.

Items to know –Lump Sum

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