You’ve been told you have the option of converting all or part of your pension plan to an immediate cash payment (a “lump sum”). What should you do?
Just as important, how do you even think about this in a sensible way?
First, let’s distinguish three circumstances under which you might have the option of taking a lump sum from your pension plan:
Although each of these situations is different, most of the thought process you should go through is the same.
Even so, there is more than one way to think about this decision.
Of course, if the lump sum amount is small, none of this matters a great deal. But if it represents more than a few paychecks to you, then it’s worth putting some serious thought into.
And that’s what our guide "Should You Accept A Lump Sum From Your Pension Plan?" is for.
For a free copy click here.