Annuity

Pension Options: Monthly Annuity or Lump Sum?

While the days of big, plump retirement pensions are dwindling, I still have regular conversations with individuals who have pensions through their workplace. This is a tremendous benefit generally providing a guaranteed stream of monthly payments (an annuity), and may include payments for a spouse or beneficiary.

But in some cases, receiving an annuity payment may not be the best option. In this article I’d like to explore the pros and cons of annuitizing your pension, versus another option that’s typically available as well: the lump-sum payment.

What to Do With Your 401(k) When You Retire

If you’re approaching retirement with a healthy 401(k) nest egg, you have a lot to be proud of. You’ve likely led a career of hard work at a job that--let’s face it--you probably didn’t love all the time.

Now what? Making the decision of how to take your hard-earned savings and live on them for 25 to 30 years is serious business. Among the many concerns of most families: What if I outlive what I saved up?

Here are four commonly considered approaches to handling your 401(k) retirement funds--along with some pros and cons for each.