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"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 it...it 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.



t.
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