My husbands company is considering buying out pensions, my husband has been with the company about 24 years and is still at least 25 years away from retirement.
2006-10-16 10:03:55 · 7 answers · asked by Melle D 1 in Business & Finance ➔ Personal Finance
It depends on the offer and how much your husband would be eligible for at retirement. Another factor is: What if your husband does not accept? How safe are the funds. By law a pension needs to be backed.
Furthermore it is important to check into any tax issues involved.
Although it is a good thing if you can get control over the funds there are a lot of obstacles involved. The IRS may want a fair amount of taxes and I don't know whether a Rollover IRA can protect you. Since it is a pension and not a 401K. All of this needs to be considered so that maybe your employer pays that part of the bill.
Once you get the funds the next difficult question is how to invest. Just because your whole retirement planning may be depending on that, lifelong income.
And current investments give you choices, stocks. bonds, CDs, mutual funds and so on. But they can run out if you get really old. So at some point in your life your may need to consider an annuity to retain at least some of the lifelong income option.
If the $ amount is significant it may be worthwhile to work with an independent financial advisor. Someone maybe friends recommend.
2006-10-16 12:16:55 · answer #1 · answered by spaceskating_girl 3 · 1⤊ 0⤋
Depends on what they're offering him for his pension. His pension is his retirement savings. If they give it all to him now, be sure to reinvest it in an IRA or Roth IRA or some other account that will be safe for his future. Don't spend it now.'
2006-10-16 10:13:12 · answer #2 · answered by Bluealt 7 · 0⤊ 0⤋
It depends on what the terms of the offer are. But if you take a buy out, at least you have the money now, and don't have to worry if there is trouble in that company's future. You can invest it for retirement now.
2006-10-16 10:08:52 · answer #3 · answered by Hank 2 · 0⤊ 0⤋
This is an attempt to remain viable on the part of the company. Odds are good it will fail and the company will go down the tubes. take advantage of the opportunity, Open your own business with the proceeds. An e-bay store is a great way to make income short term till you find your niche
2006-10-16 10:08:19 · answer #4 · answered by ? 4 · 0⤊ 1⤋
There is not enough information to answer your question.
How old is the company?
Is the company still making money?
How much money will he get after retirement, exactly?
How much money will he get now, exactly?
2006-10-17 03:10:16 · answer #5 · answered by Anonymous · 1⤊ 0⤋
sell it and move the $ to mutual fund roll over ira
2006-10-16 10:11:26 · answer #6 · answered by YourDreamDoc 7 · 0⤊ 0⤋
sell
2006-10-16 10:06:51 · answer #7 · answered by Anonymous · 0⤊ 1⤋
sell it before they go in the dumper!
2006-10-16 10:04:47 · answer #8 · answered by Nordschleife 2 · 0⤊ 1⤋