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.

(Click the featured times below to jump forward in the episode)

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:

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

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