Retirement Income Payment Plans – Choose Wisely

MoneyBag

If you are getting ready to retire,  you may find yourself faced with the question of how you should receive income payments – in increments or all at once.

Most people end up choosing steady payments, or “life annuity”.  Having that steady income can make for less stress than taking a big lump sum, especially if you aren’t an experienced investor.

If you take a lump sum, you must assume responsibility for how the money is invested and how much you can afford to spend each month. One danger with a lump sum is that you may be tempted to spend too much today, leaving you short of money down the line. By choosing a steady monthly payout, you’ll avoid the temptation to run through your pension stash.

Remember that it’s imperative to choose carefully, because once the decision is made, it’s often final!

Millan & Co. P.C. offers personalized financial and accounting services.  They can help you navigate through all of the variables in-depth, so that you can choose what income payment plan is right for you and your financial health. Call 512-479-6819 to schedule a meeting today.

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