Message Font: Serif | Sans-Serif
No. of Recommendations: 1
"A friend faced this decision some years ago. He chose the lump sum and was very glad he did five years later. "

I worked for General Electric from 1971 to 1983. Got laid off by Neutron Jack. Had months to find a new job and did (at 40% pay increase, too)....

Did not cash out the pension.....wouldn't have been that much. I started collecting it at age 60. It's not inflation indexed. So far, they've paid me $5400 a year for the past nearly 8 years now and hope to collect till I reach 100. Well, that's the plan.

I also bought GE stock along the way through the company purchase plan. Think we got a little bit of a discount, not sure, but you could invest up to 15% or something like that. That pays me, now, over $12,000 in dividends...just sat on split...and split....and I smile each month thanks to just 11 'pension years' at GE way back when. Heck, add that to my SS, and I got well over my 'survival level' income and the rest is gravy above that...

I worked for MCI.....sold most of that stock near the peak but got burned on some of it in one account that I couldn't get to....that was my pension money rolled over to a special account with MCI stock. Took a bath on that but when it takes six months to do anything with it after you leave the company and you take a 'voluntary layoff' before the bigger ones to come...well, you just take it in the shorts.....still came out way ahead.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.