Which is Better for YOU: Fixed Monthly Payments or The Lump Sum?
It's not a simple decision, and your choice matters. Which choice is best for you depends on a number of factors including:
- Current interest rates at the time of retirement (this affects the relation between the monthly and lump sum payment amounts)
- Your projected investment earnings rate over time
- How long you plan/expect to live
Put Data Behind Your Decision
It's always nice to look at your Fidelity NetBenefits page and see that you have earned a pension from Intel. But when you retire you'll have to decide how you want that pension to be distributed to you.
You can opt to receive your pension in the traditional way as a series of fixed monthly payments that you will receive from Intel for the rest of your life. Or you can choose to take a one-time lump sum payment that which you can then rollover into an IRA where it will continue its tax deferred status. But how do you know which choice is best for you and your ideal retirement lifestyle?
To help you simplify this decision, Cordant has developed an Intel Pension Analysis Tool for you to use. Simply enter your monthly and lump sum payment amounts into the Excel spreadsheet and it will generate a color-coded table showing the expected difference in value between the two options based on your projected investment earnings rate and lifetime.
Just fill out the form on this page to download your free Intel Pension Analysis tool now!
Although the vast majority of our clients are current or former Intel employees, Cordant Wealth Partners is not affiliated or associated with, nor endorsed by, Intel.