cash balance annuity

Has anyone chosen the annuity available thru GSK? Any better deals out there?

 

yes, there are many - many more and better choices than taking the cash balance annuity. You need to at least roll it over to a separate account where you can name a beneficiary in case there is any cash value left when you die.

 

There is no balance when you die.

 

It depends on the annuity you choose. Some annuities provide for a minimum guaranteed level of payout to you or your estate.

 

Get advice from a financial planner, GSK (paid for mine), annuities are complicated and have many fees attached. The answers all depend on your needs. My financial planner told me that the best thing was to put the risk on GSK (its assignee) and let them be responsible for paying me and my wife for the rest of our lives. I haven't taken it yet, but I am thinking about it, now I am thinking about taking a lump sum, rolling it into a trust, drawing as long as we need it and allowing any remaining amount to be inherited. Keep in mind that the numbers will be much smaller for shorter-term employees. Good luck.

 

Good advice. Most annuities are offered by insurance companies. You have to find someone that is financially solid because you could end up with little to no money if the insurance company goes belly up. Given that GSK has a strong credit rating, they can offer a better risk profile versus other options.

 

Remember hindsight is no prediction of future results. Do you really trust this outfit to do well in the future with the management that we have? Another way of putting it is do you want all your eggs in one basket?

 

So give us a list of companies that have reached $40 Billion in annual revenues that ended up going out of business and then compare that to insurance companies that went into default. We will wait while you do your analysis.

 

Apparently either you can not read, understand or aply simple reasoning. Just look at who is running this outfit and how we are screwing up major launches. If you want to trust your retirement with this outfit, have at it.

 

You are the one that can't read and you also don't understand our business. We have been hearing your "chicken little" stories for the last several years, yet we see each prediction fall flat.

Now, let us see you give us a list of companies that have gone belly up that were the size of GSK. We are waiting.

 

Yo Goober, how about General Motors and Chrysler which would have both been gone if not for the government bailouts. Can you see Obamer bailing out GSK? How about a little company called Citi Group that had a market cap worth multiple values of GSK, that almost went belly up?
Just for shits and giggles,ever hear of two little steel companies called Bethlehem Steel and US Steel. Goober, you talk because you have a tongue. Keep it in your mouth with lips drawn shut.

 

Enron claimed $100 billion in revenues in 2000. Numerous other examples but I am too busy studying for tests to look them up moron.

 

Been with GSK for 30 years and wouldn't invest a dime in this company as it is today or trust its titanic sinking leadership. I use to be loyal and proud but now embarressed and doubtful with golden handcuffs.

 

And the revenues weren't real if you really understood Enron (intercompany transactions). Try again, moron. Not too bright with financials, I see.

 

Goober? You must be talking about yourself. Show me where their pensions went belly up. Do you understand the question? Doesn't look like it. Let me spell it out for you.......show me a company of the size of GSK in which they went bankrupt and the pension went belly up.....tick, tick, tick, tick......we are waiting.

 

Yo Lipshitz, give it a rest! Go back to your room and wait and the Dr will be in to discuss your medication changes in a few minutes. Gosh assholes are so fun to mess with!

 

WRONG. That was their income statement that they reported to a Wall St. Want another example? How about every investment bank on a Wall St? Without a suspension of accounting standards and the backing of the government they(GS, C, and ML) all would have gone BK.

Such a dope.

 

Sorry, but your last two attempts to twist the story fail yet again. You have yet to name a company the size of GSK that has gone bankrupt and defaulted on their pensions.

Try again, Spanky. So far, you are striking out.

 

Here is yet another example of the stupidity we have at this company and the need to clean out morons like this.

If this person took just two seconds to read the annual plan statements, he would be able to see the health of the pension plan. Credit agencies will look at the annual plan funding levels to determine the financial strength of the pension plan in order to judge the viability of making payments. If you look at this article, you will note the various standards on the 4th page:

http://www.actuary.org/files/80_Percent_Funding_IB_071912.pdf

If you look at the various standards and go with the most conservative measurement, you would see that Standard and Poor lists the top category at over 90% funding, setting aside the previous standard of 80% funding.

So, if we spend just 2 minutes and look up the GSK funding level, we would see that it is in the high 90's. Of course management has an incentive to keep this high level of funding since they also have money in this plan and if you look in the annual report under compensation, you will see that it is a meaningful amount.

Now, when it comes down to figuring out your options, you need to balance the annual payouts (and calculated return rate) versus the financial security of the plan or insurance company strength. Typically, the higher payouts are more typical of higher risk situations.


Like always, we see the person above shooting their mouth off with little regard for facts or reality.

 

The above post is on target as for as determining the stability of the pension plan and a very key point in determining where to keep your pension. Another is the flexibility of the plan - ex if you take the GSK pension annuity you may have two choices. Full payout without any death benefit. Take a less payout and potentially leave 1/2 of the previous payout to your beneficiary.

The other option is to take the cash balance and roll it over to another investment vehicle that may allow you more options and including death benefit if their is any cash value left if you have begun to take distributions. Obviously as the previous poster stated the vehicle you roll the money over should be backed by a strong balance sheet of the company