Never,never,never take an annuity when you retire.

[Swede]

Take the cash,pay the tax,but then you control YOUR money.

[firefox_fan]

1. Care to elaborate?

[Swede]

2. When you retire,the company will give 3 options.

Take the annuity and we will look after you til you die.
Let us take your pension and we will look after you.
Ok,take your money,but we really don't recommend it. You'll wind up in a poor house.

[Swede]

3. Hint: the third one gives you the money.

Plus most annuities do not pass the money on to your heirs.

[firefox_fan]

4. Oh, ok... Well, my heirs will manage without my money.

[Swede]

5. Well take the annuity then.

When you die the money goes into the pot.

[firefox_fan]

6. No, no, give me you e-mail. I'll send it to you :)

[Lasher]

7. All employers do not offer a lump sum option

But I agree, the lump sum is the way to go if you have a choice.

[antigop]

9. It all depends upon how that lump sum is calculated

A lot of times the lump sum may not include an early retirement subsidy -- it's a game that companies play and win.

[Lasher]

10. Hello, antigop.

Here's one you might want to look in on: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x3362077

Some discussion about employer-provided health care.

Hope all's well with you.

Lasher

[antigop]

11. Thanks for the link -- I responded on the other thread. Take a look. Not pretty. n/t

[karlrschneider]

8. Unless it is specifically prohibited by contract, you can bequeath, sell or give away an annuity.

I can't imagine anyone being dumb enough to give up those options.

[Sgent]

13. I think he's referring

to a pension annuity, which is similar but also very different than an insurance annuity. Most employment annuities are much more restricted in transfer options.

[BlooInBloo]

12. Yah! Who cares what the tax consequences & other details are!

Obviously one choice here covers ALL situations.

[Lasher]

14. It is prudent to roll a pension lump sum into an IRA

In this manner you avoid an immediate tax liability. Then what you draw out each year is treated as taxable income. Payments from an employer-provided retirement annuity are also treated as income.