Today many American workers are being offered the opportunity to receive lump sum payments from their employee pension plan. If you are offered this option, you might consider the following ways in which you can utilize that money to establish a suitable financial plan. Today people may have to provide for a long lifespan. As noted in the attached link to Bloomberg News, The Social Security Administration estimates that the average 65-year-old man will live to age 84.4. AIR MAX SEQUENT
For women, that number jumps to 86.7. Phil Simms Remember that these are just averages. nike air max pas cher If you take good care of your health, and have inherited good genes, you could live much longer. adidas scarpe bianche So when invested properly, a lump sum payment may provide income for a long time. Goedkoop Adidas NEO You can purchase an immediate annuity. If you invest a lump sum payment, an immediate annuity offers monthly income for your retirement- – keep in mind that an annuity is typically not liquid, so you should have other liquid assets available for emergencies. Nike Air Max TN Femme If your contract includes the option for lifetime income, that news can come as a big relief to those who worry about outliving their money. Income from the annuity is based on the claims paying ability of the insurer, so it is important to choose a highly rate company. You can account for inflation. Some annuities can be structured to keep pace with inflation, so that you don’t have to worry about rising costs outpacing your retirement income. Nike SB Paul Rodriguez 9 Again, this can be an appealing option (subject to additional expense) when you consider the possibility of a long life; over a couple of decades, the prices of goods and services could double. Charlotte Bobcats You can provide for your spouse, or vice-versa. In the event one spouse living longer than the other, you can purchase an annuity that provides income to the surviving spouse. Nike Air Max 2016 Rosso Uomo
Be aware that accepting a lump sum payment can trigger certain tax consequences. asics gel lyte pas cher This is an issue you should discuss with your tax or a financial advisor. Such consultations will assist you in the selection of an annuity policy, if an annuity purchase is right for your situation.