Pension benefit lump sum

Discussion in 'Pfizer' started by Anonymous, Aug 22, 2014 at 9:28 AM.

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  1. Anonymous

    Anonymous Guest

    Anyone advising you to take the lump are Pfizer CPAs and corporate greedy monsters strolling this site. Do not be fooled, it will cost you nothing to call Fidelity. Give this a thought, pharma companies are in business to make sure people live longer. You will live a long time, which means you will need the pension. Regardless of your monthly amount, they are offering you pennies on a dollar in exchange for bean stalks. Let them keep the risk, they are obligated by law to do so. They will not file for bankruptcy because they are rich in cash. Don't leave your kids wondering how they will take care of you. Force Pfizer to take care of you along with any retirement or saving/ss that you earn. Trust me, if they get desperate, new hires will pay more to join in what you are already entitled to. Keep your pensions!,!!!!!

    I charge nothing for this free advice, I gave it to my client let go in 2009 who asked me the same- your welcome.
     

  2. Anonymous

    Anonymous Guest

    If your client had a lump sum of $1million+ would you give the same advice? Exactly what do you do for a living?? Clients???? Are you an accountant, CFP, attorney, barber, housekeeper?? Thank you for your free advice-I will take it with a grain of salt.
     
  3. Anonymous

    Anonymous Guest

    You're funny. I know a lot of people who retired over the years and I can't say I know anyone who didn't take the lump sum. Fair balance-all were well tenured reps/DMs who had substantial money coming to them. If it was only a couple of hundred thousand vs a $2500-3000 monthly, I may choose different. The size of the payouts for well tenured retirees is too good to pass up my friend.
     
  4. Anonymous

    Anonymous Guest

    Has everyone forgotten Social Security? My wife and I are receiving 5200/mo. That's our guaranteed income. I took the lump vs.a 2500/mo annuity, invested it in a target date fund and have increased the principal 45% in the last 3 years and am still up 35% after the 2008 meltdown. Living very comfortably and never look back.
    The bottom line is simple....both are gambles. I know many people who are in their eighties and the pension/annuity paid off for them. I also knew many people who lasted less than ten years after retirement and they obviously lost with the pension, as did their heirs. The lump gives you the option. If you find down the road that taking the lump was a mistake, buy yourself an annuity.

    Most financial decisions are common sense and a little research. Index funds are the safest way to go; I like Vanguard. Fidelity is fine, too. See a CPA re: taxes because no one can understand the tax laws on their own. Financial advisors are OK if you have no confidence or are just plain lazy. If you don't mind paying them 100-150K on a 1mil estate then go for it. Many are very good and the piece of mind is worth it to you.

    Pfizer holding my money???? NEVER!
     
  5. Anonymous

    Anonymous Guest

    Or you die!
     
  6. Anonymous

    Anonymous Guest

    Screw that.....80 and living very well. After that I don't care....Welfare,Medicaid, let the govy take care of me like the rest of the freeloaders in this country!
     
  7. Anonymous

    Anonymous Guest

    Hope you don't need your check anytime soon. They won't cut the checks until Thanksgiving...
     
  8. Anonymous

    Anonymous Guest

    Ok one last time with my free advice- I'm an Estate attorney specifically (for the post who called me a barber). My father who owns the business is a wealthy estate planner specializing in leaving fortunes to heirs (avoiding as much tax as possible). My niece worked for this company. She no longer have stocks as they have been flat for years. 13 years acquired from Parke-Davis. I guarantee none of you have been offered more than 60k. I've been doing this for 40 years. My clients make your salary in their sleep. My niece felt sorry for you and asked me to do this. I thought some could use the advice- keep your money vested. If you are unsure, call your own personal advisor, many for free or a small fee, and ask. Otherwise your as stupid as lottery winners going broke in two years because "they thought they could count that high".- ps- don't forget about the taxes and penalties before you actually cash the check. Uncle SAM always gets theirs first.
     
  9. Anonymous

    Anonymous Guest

    As far as taking a lump sum....I'm not talking about $60,000. That sum is ridiculous-I would leave it where it is. I'm talking $750,000- $1.5 million lumps (yes they are out there for tenured people). Would you still advise them to take the annuity???? I took the lump and I also make the salary while I'm sleeping. Every situation is different with no cookie cutter approach. To say "don't take it" to everyone I think you would agree is probably not the best advice you could give to you clients (or niece). It's like giving the same estate planning advice to someone with $100,000 estate as you would with someone with $3 or $4 million. Different circumstances different plan. Don't you agree??
     
  10. Anonymous

    Anonymous Guest

    Exactly!!! Free advice is just that, free and worthless.
    60k isn't what most tenured people are getting. All depends on age. If you have to wait ten years to get your annuity you could probably double your money. If you are 65 talking the monthly payout would make more sense. Anyone with 500k on up will be definitely better off taking the lump sum. Estate lawyers are for the truly wealthy.
    Estates of 1-3 million aren't going to be taxed anyway, and you can shelter it yourselfw/ o making lawyers rich doing nothing.
    CFP's, estate lawyers, all get rich on our money. If you truly are that inept at handling your money by all means, use an advisor. If you were smart and savvy enough to accumulate a million and more on your own do you really think these people would make that much of a difference after their fees? Studies....independent ones at least show that very few people do any better with an advisor than they do on their own.
    Annuities, pensions, etc are gambles as many posters have said. And always remember, your advisor gets paid win or lose.
     
  11. Anonymous

    Anonymous Guest

    The old time pensions were wonderful. The thing is you need to put everything in perspective. 30-40 yrs ago retirees didn't live into their 80's, 70 to 72 was more like it. Pensions only lasted for 6 yrs and the companies made out well. Now wit 80 being middle age, they are paying out more than they ever dreamed. If you like to control your money take it, if you're happy with someone else doing it take the pension.
     
  12. Anonymous

    Anonymous Guest

    Pension lump sums are VERY high now for tenured people because of longevity AND the interest rates are extremely low. If the rates rise (which they will at some point), the lump sums will go down. Some people who are retirement eligible stick around for a few extra years may find they worked for nothing if the rates spike a couple of points and their lump sum drops $300,000+. Its a dilemma that most are aware of. The Vaccine division had a rash of retirements a couple of years ago when rates were scheduled to rise (they have since come down). People realized the lump reduction was greater than their yearly salary so why work! (The fact that Pfizer was such a great company to stick around for I'm sure was icing on the cake!) They adjust the lump every quarter so you have some advance notice on a decrease if it's going to happen. If you check your retirement calculator periodically you know what I mean.
     
  13. Anonymous

    Anonymous Guest

    What rate is it based off?
     
  14. Anonymous

    Anonymous Guest

    I have a question if you left your job because of disability & are now on ssd got the letter for the lump sum election, will you have to pay taxes & penalties on the pension lump sum? I know on the 401k you didn't have to just wondering if same applies to this. Thanks
     
  15. Anonymous

    Anonymous Guest

    I'm not an accountant but I believe you need to roll it into an IRA. Do you really think the government will let you get money that hasn't been taxed all along free without paying taxes on it?? Think about it.....Not going to happen.
     
  16. Anonymous

    Anonymous Guest

    I find it hard to believe your 401K came to you untaxed. I had two buckets in my 401K when I retired. The after- tax portion I got free of taxes, the pretax I needed to roll into an IRA to avoid taxes and penalties.
     
  17. Anonymous

    Anonymous Guest

    Because I left on total disability they didn't tax my 401k. I was hoping it may have been the same. Only receiving $18,000. But after taxes & penalty it brings the lump sum to $13,000.
    Alot ($5,000) to give uncle sam.
    Thanks
     
  18. Anonymous

    Anonymous Guest

    A couple corrections to your inaccurate advice that isn't worth more than what you chard\ge (free)

    "You will live a long time, which means you will need the pension."
    -Thanks Nostradmus, but you can die tommarow.

    "Force Pfizer to take care of you along with any retirement or saving/ss that you earn."
    -you mean DEPEND on Pfizer to take care of you ? No thanks

    "Don't leave your kids wondering how they will take care of you."
    -Don't leave any inheritance left over from a lump sum to your children? You can supplement the pension income by investing wisely and leave something behind, but who wants that?

    Hmmmm
     
  19. Anonymous

    Anonymous Guest

    If you expect to die early as evidenced by your own health problems, or family tendency to die early, then by all means take the lump sum. Otherwise (and actuarially) the pension is a best bet as a fixed income resource for covering basic living expenses - even with inflation factored in.

    Many companies are de-risking their pension plans by encouraging lump sums. Do you think they are doing this for your benefit?

    Maintaining your pension enables you to take more risk in other investments, which over the long haul will benefit your heirs.
     
  20. Anonymous

    Anonymous Guest

    Don't you think the amount of the lump sum should come into play. For example: A $100,000-$250,000 lump sum decision will be different than a $1,000,000-$1,500,000 lump sum decision (yea-they are out there for tenured reps). Hard to walk away from a 7 figure lump sums-don't you think!! A good financial advisor investing your money VERY conservatively will more than cover your monthly annuity payment.