Spouse Retirement Option

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By David S. Edge

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While meeting with Kevin, he was concerned about what to do with the choices on his company retirement plan. There were several choices and he was confused about which one was the most appropriate for him and his spouse. They had met with another company who advised them to take the lump sum distribution for the advisors to invest.

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His wife was pushing him to take the monthly lifetime payout that would continue for her lifetime if anything happened to him. Her reason was either one of them would have this lifetime monthly income guaranteed.

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We reviewed his options on his retirement plan.

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His choices were:

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1) Take a lump sum payout and invest the money himself.

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2) Take a monthly payout for just his lifetime.

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3) Take a monthly payout for him and spouse that would
continue in the event he passed away.

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The issue as Kevin saw it was the monthly payout for just him was higher than the option of the payout for life with him and
spouse. He would get about 25% less money in the monthly payout if he took it for both of them. Also, if anything happened
to the both of them, their kids would get nothing.

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We were able to look at the financial implications of him taking the lump sum payout and what investments were available that would generate income for him and his wife. After careful review, we revealed that his lifetime payout on his pension for Kevin and Irene was the most appropriate selection for them financially.

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After discussing the options with him and his wife, Irene, they were both excited about getting lifetime income from his pension. This allowed us to make recommendations with their other retirement funds that not only created additional monthly income but would also leave something for his kids when they passed.

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At American Retirement Advisors we see our success as helping each and every client get the facts
about any retirement issue so that you can make a “Fact-Based
Decision”. Call us! We can help!