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.
