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Private Pension choice- by Bank of New York Mellon insured by PBGC

By Terry Savage on October 18, 2020 | Financial Planning / Retirement

Hi Terry, wondering your thoughts regarding the Private Pension choice- lifetime annuity managed by Bank of New York Mellon insured by PBGC, or take lump sum and roll to IRA? During these times of Corporations health and possible future Bankruptcy or failure, it is more important then ever for making the correct choice. My job will be done end of this year and I will need to make a choice. Thanks,

Terry Says

There are always costs rolled into bank offers! I don’t know the specifics of this choice given to you by your company, but personally I would call Fidelity or Vanguard and do the DIRECT IRA rollover. They are always low cost providers. THEN, you must make some investment decisions.
They may refer you to an advisor who uses their funds, but beware of the additional costs. I would just diversify that IRA rollover between conservative choices like a balanced fund, an equity-income fund, and keep some in a money market fund — because you will need cash for RMDs in a few years.
But this is very general advice. If you want specifics, click on the small blue box, top right of my home page to connect with Wealthramp — the matchmaking service to connect you to FEE-ONLY, FIDUCIARY financial advisors you can trust.

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