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Investing/Strategies / Retirement Investing
|Subject: Annuity vs Cash Account||Date: 12/11/2000 4:47 PM|
|Author: head1st||Number: 26539 of 76418|
My current employer is offering an option for our retirement plan. I may continue in the traditional plan (annuity) or switch to a cash account plan. The traditional plan will grow into a larger amount than the cash plan. However since it is becoming more difficult to spend our working years at the same company. I have concerns about staying in the traditional or going for the cash. I have 25 years with this company but have no idea how many more. I'm always looking for advancement.
My question: If I take the cash account and leave the company within the next 2 or 3 years. Would it be more benificial to be able to leave the money in the traditional or take the money with me and try to grow it in an IRA?
There are some benefits to both. Traditional allows for larger pot of gold at retirement providing I can stay employed there through age 65. Cash account will allow me to take a lump sum or annuity payments at retirement, name a beneficiary now rather than after retirement and more control with money in hand if I leave before age 65. After I choose, "All bets are permanent".
Any help or ideas to help in my decision would be greatly appreciated. Is there something I should be looking out for in these plans either now or after retirement?
Trying to use my,
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