Episode #19: Pension Buy-Outs

Today’s Prep:

Join us as we dive into the mailbag. This week, we’ll feature your email questions on pension buy-outs, commercial real estate, and divorce.

Equipping Points:

00:52 –  Selling Commercial Real Estate.

  • Tim owns a dental practice, and he’s preparing to retire. He owns his own building, and he wants to know whether to sell. As a business owner, you really own two assets. Technically, you own the business, and then you own the building as well. Consider selling one or both of those assets to generate an income stream in retirement.

3:11 – Pension Buy-Outs. 

  • Harvey says his company will be eliminating pensions. While they’re not forcing him to retire, they’re going to give him a buy-out instead. He wants to know whether to continue working, and in reality, it really depends on what Harvey wants to do. In these scenarios, you need to think through whether you’d like to continue working and whether you like your company. If you’re burned out, there might be some other job you can take to semi-retire and replace some of the income.

5:12 – Pension Buy-Outs Give You Control.

  • If you take that pension buy-out, you can roll it into an IRA. Doing so leaves you with more control of your money and enables it to continue growing.

6:48 – Dealing With Divorce.  

  • Vicki is most likely getting divorced. She’s already retired, and her husband will be retiring soon. She wants to know how her retirement will be affected. This scenario is difficult to predict. It depends upon how the money is split and how many assets Vicki and her husband each have. Sadly, divorce court can get nasty, so it’s important to work with a good lawyer as you go through the process.

Today’s Takeaway:

“Pension buy-outs present you with the opportunity to take control of your money. Work with your advisor. Use your pension buy-out to your advantage. – Retirement Ready

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag – Roth IRA, Emergency Funds & Tax-Deferred vs. Tax-Free

April 24, 2025

Making more money is great, but what happens when it becomes a roadblock for contributing to a Roth IRA? And how can you make your emergency fund work smarter for you? In today’s episode, we pull from the mailbag and answer a mix of listener questions. Eric addresses concerns that reflect the real-life hurdles many face on the road to retirement.

Read More

Early Retirement: Dream Come True or Financial Trap?

April 10, 2025

Ever fantasize about leaving your 9-to-5 before traditional retirement age? You’re not alone, but is early retirement even possible? In today’s episode, Eric explores what it really takes to retire early including how to tackle healthcare costs, how to make money last longer and the importance of shifting your mindset from spender to saver.

Read More

What 400+ Advisors Say Really Keeps Retirees Up at Night

April 3, 2025

What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.

Read More

Bracket Busters and Stock Flops: The Risky Game of Picking Winners

March 27, 2025

March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.

Read More

Are Hidden Fees Draining Your Retirement Savings?

March 20, 2025

In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.

Read More

What Game Night Can Teach Us About Financial Planning

March 13, 2025

In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.

Read More

Mailbag – Upsizing, Financial Advisors & Business Owner Planning

March 6, 2025

Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.

Read More

Planning for Unique Situations in Retirement

February 27, 2025

While many face the same general retirement concerns, each individual’s situation is unique, requiring tailored solutions.

Read More

Planning for Kids, Grandkids, & Your Future

February 20, 2025

As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.

Read More

Leave a Comment