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I had a pension that was from a company that i worked for back in 1996-1999. I took the option to roll over into my current 401K and with considerable luck, I received the lump sum in early January when the market had just taken a healthy hit. I bought in with shares nearly down 25%. I have made quite a tidy profit since then.
Here is the part which I don't get. It was an option. I could have taken the lump sum or done nothing. Doing nothing changed nothing. How is having options a bad thing? It's pretty comical watching Trump haters try and concoct anything to try to make him look bad especially when Im pretty sure he had nothing to do with this. This came about because financial institutions wanted an out from managing accounts for people who no longer worked for the companies which held the pensions.
It's just an option...lol. For me, it was a great option as I'm now controlling how I invest that money. For what it's worth I would be pretty worried about a pension in Illinois. Completely underfunded and taxpayers leaving in droves. Perhaps you should consider a lump sum and reinvest in a IRA.
I had a pension that was from a company that i worked for back in 1996-1999. I took the option to roll over into my current 401K and with considerable luck, I received the lump sum in early January when the market had just taken a healthy hit. I bought in with shares nearly down 25%. I have made quite a tidy profit since then.
Here is the part which I don't get. It was an option. I could have taken the lump sum or done nothing. Doing nothing changed nothing. How is having options a bad thing? It's pretty comical watching Trump haters try and concoct anything to try to make him look bad especially when Im pretty sure he had nothing to do with this. This came about because financial institutions wanted an out from managing accounts for people who no longer worked for the companies which held the pensions.
It's just an option...lol. For me, it was a great option as I'm now controlling how I invest that money. For what it's worth I would be pretty worried about a pension in Illinois. Completely underfunded and taxpayers leaving in droves. Perhaps you should consider a lump sum and reinvest in a IRA.
It sounds like you are talking about a 401(k).
If it were a pension there is not "do nothing" option, either monthly installments or lump sum (in various ways).
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If you have a defined pension heads up!! Your pension is now in real danger thanks to Trump!
As usual this mad man has undone a protection that Obama put in place to protect defined benefits retirees. Before long you might receive a very nasty letter telling you that you pension is now a wreck on the shoals of wall street greed!
If it were a pension there is not "do nothing" option, either monthly installments or lump sum (in various ways).
Wrong. It was a pension and the do nothing option was exactly that. Leave it...do nothing and get the monthly installments at some point when I decided to do so. This is the exact verbiage the company who managed my pension used.
I'm not ready to start using it so I didn't need to do anything, hence the "do-nothing" option. I could have left it with that managing company and eventually receive monthly installments.
Of course, as I stated I chose to take the lump sum and roll it into my current 401K so I could manage where the money was invested.
I took the lump sum after discovering that even big company funds were largely under funded and a certain number were going belly up all the time. But I retired during the Great Recession. I put the money into an immediate annuity which meant I had control.
The way lump sum is calculated uses a concept called net present value. That means if the economy at the time is down you get more $$ than if it is doing well.
I can't speak for other government employees, but I have worked for the state for 15 years, in which we have received 2 cost of living increases. So don't use a broad brush to paint all of us as "greedy".
Sounds as though you worked for the same state I did. When I retired we had not gotten a raise for 5 years, and I think it was another 4 or so after I left until the remaining workforce did get a raise.
Also there was the little fact that as state employees, ( I was in a medical professional category), our salaries were approximately 30% lower than we could have gotten in equivalent jobs in the private sector, so yeah, we counted on the benefits offered by our employer.
I'm happy with the defined pension I now get. It's hardly a princely sum, but it helps.
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