Anuity questions
Hello. When i retire I will be getting a union pension and also have a anuity Whats the best way to handle my anuity. Thank you. Love listening to you on WGN
Terry Says
That depends on the choices you are given — if you are given any choices. It seems to me that in addition to your fixed monthly pension, you must also have some sort of “savings program” that built up cash over the years. Now you have to deal with that money.
If the money is in a pre-tax program such as an IRA, then you have choices to make — ie rolling it into another deferred plan and letting it keep growing, or withdrawing it and paying all taxes now as ordinary income (not advised!).
If it’s in a “deferred comp” plan, you may be either required to take it as salary (and pay taxes AND FICA),or get a choice of rolling it over OR taking it as a monthly sum for life — either your life or the life of both you and your spouse (which results in a lower monthly check).
So first, please ask your union HR person about your CHOICES and ALTERNATIVES –and then write back to me.
But since this is really a huge financial planning decision abouat your retirement lifestyle, this might be a good time to get some advice from a fee-only FIDUCIARY advisor who is not trying tosell you anything!
Click on this link and watch the video:
