Page 6 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know

So, like I said, a bunch of bad choices: a) take a lump sum, thereby
eliminating all the risk mitigation the pension provides, b) take a
life-only payout, eliminating any benefit for your spouse should you die
first, c) take a joint and survivor benefit, resulting in a reduced payment
that could end costing you thousands for a benefit you never receive,
and d) in any but the lump-sum choice, losing the benefit for the family

should you both die.

So, what if there were a way to have it all? To have your pension
payout for the rest of your life, make sure your spouse is covered, and
leave the lump sum to your kids should you and your spouse die at or
about the same time? That would be like having your cake and eating it,

too, right? You can read about it on page 22.

Here’s another example. Many people get all exercised about having to
spend down their retirement savings through something called required
minimum distributions (RMDs). For people who don’t really need the

money to meet their expenses, this can represent a double whammy;
adding insult to injury, so to speak. First, they are in a position of
having to increase their tax burden by having to make withdrawals they
really don’t want to make, and second, they end up drawing down funds
they would rather pass on to their estates.

What, however, if there were a way to allow you to maximize the
investment, eliminate the tax issue, and leave 100% of the money to
your estate? That would be like having your cake and eating it too, as
well. Right? This is covered on page 26.

Here’s one more. Most people want more income than their savings

allows for. The average 401(k) balance for people close to retirement
(ages 50-59) is a bit under $180,000, and the median balance (middle