Holdout or Buyout? Deciding on your Pension

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SD Accounting Firm applauds an article on whether to take a lump sum or continue with monthly pensions. SDA also released a top 5 list of things to consider when planning for retirement.

SDAccountingFirm.com recently encountered two articles this month on making a decision regarding pension holders, and is pleased to also release its top 5 list of the things one must consider when saving for retirement.

One of the things to consider when receiving a pension is whether to opt for pension payments or take the lump sum buyout offered by a lot of companies these days. This has been the trend recently because companies actually save a lot if they hand you a lump sum on your retirement. But, this isn’t always the case. Fidelity.com writes a detailed pro’s and con’s article when it comes to decision making. SDAF recommends Foxbusiness.com’s article for a more friendly and concise version of tips.

SDAF released its own tips today on saving for retirement, like investing in a bank that uses a merchant processing service and running their own business with the lump sum so there is continuity in cash flow. They also suggest business owners take look at their own situation and ask important questions such as life expectancy, or would it be best to get everything now, just in case the ride into the wind comes early.

A lump sum payout or payment is a one-time payment given by a company to its retirees on a specific date, given of course the years of service and other bonuses. This is the second option available when choosing a retirement plan; its counterpart being an annuity or a series of payments made over time.

SD Accounting Firm gives positive remarks on the helpful articles about planning for one’s retirement, and released their own list of things to consider when saving up for retirement.

San Diego Accounting Firm is dedicated to helping people with their financial and accountancy needs. They give out free information to educate the public.

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