I'm 61 years old, recently retired and need to decide how to take my pension from my former employer's pension fund.

This is a church-affiliated hospital system pension fund in the USA and is therefore excluded from federal protections through ERISA and has already had to borrow money to fund the pension plan, so I am unsure how secure it will be in the future.

I can choose from several options with monthly annuity payments or take a lump sum and invest the money myself. I will need to have a steady income source for likely the next 30 years.

I also have a 403B personal retirement account and I was wondering if I were to take the lump sum whether I could roll over my 403B into an IRA and add my lump sum from my pension and invest in dividend stocks to provide an income stream and protect my principle.

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  • We need more details to answer this. 10 years ago, when my company killed their pension funding, I took a lump sum and transferred it to an IRA. It was invested 100% in S&P index and done well. Are you comfortable managing this lump sum? Jun 8 '15 at 9:55

You need a find a financial planner that will create a plan for you for a fixed fee.

They will help you determine the best course of action taking into account the pension, the 403B, and any other sources of income you have, or will have. They will know how to address the risk that you have that that particular pension.

They will help you determine how to invest your money to produce the type of retirement you want, while making sure you are likely to not outlive your portfolio.

  • 1
    Any typical financial planner "worth his salt" will likely recommend taking all the money and putting it into an immediate annuity. What the OP needs is a fee-based financial planner, not someone who gets a commission from whatever is sold to the client. Jun 8 '15 at 13:49

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