Comments on: Why I took a pension lump sum http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/ Moving beyond the basics Thu, 20 Nov 2008 00:17:43 +0000 http://wordpress.org/?v=2.2.2 By: Bob Richards http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-30648 Bob Richards Thu, 10 Jul 2008 02:15:42 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-30648 Right on the money. Just the flexibility and control are overwhelming qualitative reasons to take the lump sum before even considering the positive quantitative reasons. Right on the money. Just the flexibility and control are overwhelming qualitative reasons to take the lump sum before even considering the positive quantitative reasons.

]]> By: Weekly Roundup - M-Network Website Edition http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24659 Weekly Roundup - M-Network Website Edition Sun, 13 Apr 2008 21:48:00 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24659 [...] you keep you money in a pension plan, or cash it out? KMC from Advanced Personal Finance cashed his out - which is what I would have done as [...] […] you keep you money in a pension plan, or cash it out? KMC from Advanced Personal Finance cashed his out - which is what I would have done as […]

]]> By: Jeff http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24394 Jeff Fri, 11 Apr 2008 23:08:25 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24394 Great post. A friend asked me about cashing out his pension just a few days ago. I plan to forward your post to him. Assuming there are no adverse tax consequences or penalties for cashing out, then it would come down to two things for me: 1. Can I invest my money better than the pension manager? "Better" means different things for different people, but at a minimum it includes return as well as transparency. It's not always easy to know how it's invested, which makes it difficult to allocate the rest of your investments accordingly. 2. There is the risk the fund collapses or runs dry and your money won't be there in 30 years. Generally you are compensated for bearing risk in our financial system. In this case, however, I see it as an additional risk for which you're not being compensated. So why bear it? Great post. A friend asked me about cashing out his pension just a few days ago. I plan to forward your post to him.

Assuming there are no adverse tax consequences or penalties for cashing out, then it would come down to two things for me:

1. Can I invest my money better than the pension manager? “Better” means different things for different people, but at a minimum it includes return as well as transparency. It’s not always easy to know how it’s invested, which makes it difficult to allocate the rest of your investments accordingly.

2. There is the risk the fund collapses or runs dry and your money won’t be there in 30 years. Generally you are compensated for bearing risk in our financial system. In this case, however, I see it as an additional risk for which you’re not being compensated. So why bear it?

]]> By: Chief Family Officer http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24240 Chief Family Officer Thu, 10 Apr 2008 19:48:20 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24240 I think in your situation, I would have done exactly the same thing. I would be particularly concerned with the way pension plans are failing and payments being cut off. I think in your situation, I would have done exactly the same thing. I would be particularly concerned with the way pension plans are failing and payments being cut off.

]]> By: Patrick http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24108 Patrick Wed, 09 Apr 2008 20:50:20 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24108 My brother in law just left his company for a new position. He and I talked about these same points, and in the end he rolled his pension into an IRA as well. Great article, and I would have done the same thing. My brother in law just left his company for a new position. He and I talked about these same points, and in the end he rolled his pension into an IRA as well.

Great article, and I would have done the same thing.

]]> By: Your page is now on StumbleUpon! http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24107 Your page is now on StumbleUpon! Wed, 09 Apr 2008 20:50:19 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24107 [...] Your page is on StumbleUpon [...] […] Your page is on StumbleUpon […]

]]> By: Mike Jones http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24039 Mike Jones Wed, 09 Apr 2008 07:46:24 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24039 We have a similar situation in the UK, where we share many of the same problems as the US; rapidly increased life expectancy over the last 30 years; a lack of confidence in the pension system; a lack of trust in the 'safety net' set up by Government in case an employer goes bust; pension contributions reducing as people tighten their belts. It doesn't bode well for future generations. Mike Jones We have a similar situation in the UK, where we share many of the same problems as the US; rapidly increased life expectancy over the last 30 years; a lack of confidence in the pension system; a lack of trust in the ’safety net’ set up by Government in case an employer goes bust; pension contributions reducing as people tighten their belts.

It doesn’t bode well for future generations.

Mike Jones

]]> By: JoeTaxpayer http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24021 JoeTaxpayer Wed, 09 Apr 2008 04:28:17 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-24021 Good job. I did the same 3 years ago, and am happy I did so. My coworkers who stayed in the plan (one time chance to pull out) are not happy. There's a good chance the company can go under and they won't get the full amount from PBGC. I'm with you there. Joe Good job. I did the same 3 years ago, and am happy I did so. My coworkers who stayed in the plan (one time chance to pull out) are not happy. There’s a good chance the company can go under and they won’t get the full amount from PBGC. I’m with you there.
Joe

]]> By: Welcome to growingthedream.com http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-25744 Welcome to growingthedream.com Wed, 31 Dec 1969 17:00:00 +0000 http://advancedpersonalfinance.com/why-i-took-a-pension-lump-sum/#comment-25744 <!--%kramer-pre%-->unknownwrote an interesting post today on Here’s a quick excerpt Until recently, I worked for one of the few remaining companies to offer a real, old-fashioned pension. When I quit a few months ago, I did something I’d read you’re never supposed to do.<!--%kramer-post%--> links from Technoratiunknownwrote an interesting post today on Here’s a quick excerpt Until recently, I worked for one of the few remaining companies to offer a real, old-fashioned pension. When I quit a few months ago, I did something I’d read you’re never supposed to do.

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