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:

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

Do You Agree or Disagree with this Retirement Advice?

April 8, 2021

Which of these statements is worth paying attention to and which ones should you take with a grain of salt? Eric shares whether he agrees or disagrees with five retirement planning statements.

Read More

Mailbag: Can I Sell My Home and Just Rent in Retirement?

April 1, 2021

Ever consider a retirement plan that seems a little unorthodox? There’s no one-size-fits-all when it comes to financial planning, so Eric answers three questions in the mailbag from people considering a less traditional decision to make their plan work for them.

Read More

What Creates A Sense of Urgency With Your Financial Plan?

March 25, 2021

Have you been procrastinating putting together a financial plan or do you have a sense of urgency? What events may prompt you to act quickly?

Read More

Should You Follow Dave Ramsey’s Financial Advice?

March 18, 2021

Is the baby step program and financial advice from Dave Ramsey for everyone? What does a registered financial consultant have to say about it?

Read More

Financial Wisdom from Calvin and Hobbes

March 11, 2021

Perhaps a bit unexpected, the comic strip Calvin and Hobbes had a lot of great life and financial advice to dole out. Which of these apply to your financial situation?

Read More

Can You DIY Financial Planning?

March 4, 2021

What reasons might someone debate going DIY when it comes to a financial plan? Is it better to go to an advisor or is sometimes DIY right for you?

Read More

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Leave a Comment