I'm 65, & Disabled in a wheelchair. I'm filling out the paperwork to start collecting my pension. The Company I used to work for has a split formula for setting up your pension payments.
Part 1 RCA Pension Benefit Life with 5yr Guarantee. (Automatic Payment Method) 149.20 a month, with a Lump-Sum Option of 29,347.70
Part 2 GE/Trans Ops Pension Benefit Life with 5yr Guarantee. ( Automatic Payment Method) 618.79 a month. ( No Lump-Sum Option )
Part 3 Personal Pension Account Life with 5yr Guarantee. (Automatic Payment Method) 30.81 a month, with a Lump-Sum Option of 5,800.10
There is also an RCA Alternate Pension Benefit Option that would essentially combine all the Automatic Options into 1 payment each month of 821.08
I'm leaning towards the Lump-Sum for Part 1, & rolling the Automatic Payments in Parts 2 & 3 together, giving me a monthly payment of 649.60, & 29,347.70 to invest. Currently, I only have my disability income of 1999.00 a month; no frills, certainly, but survivable for 10 yrs so far. (I lost my leg in a Hurricane) The extra 649.60 a month would absolutely help my day-to-day life, but I think being able to invest a significant amount of money (to me) of 29,347..70 could be more helpful to me than an additional 149.20 a month. (Possibly Bitcoin, I Bonds? High-Yield Fidelity Funds?) I have no family, no heirs. I live simply, no cars, no expensive habits, no drugs, smoking, gambling, etc... I have a track record with Credit Karma of paying every single bill 100% on time for more than 10 yrs. I would like to ultimately buy the house I rent. (Approx. 300k) Because I'm single,& Disabled, part of the 1040EZ form states that I do not owe any taxes, unless I were to make more than 50k in a year. I'm not sure how a Pension would count for taxes. Any Advice?
Submitted December 18, 2021 at 07:26AM by 4serenity4 https://ift.tt/3mck2rR
