“My wife just retired. She’s looking at how to take her pension. The company offered her 4 different flavors.
(1) She can get the maximum amount per month for her life only.
(2) She can get a lesser amount and then, if she passes before me, I get 75% of what she got.
(3) She can get even less and then, if she passes before me, I would get 50%.
(4) We can accept a buyout or a “lump sum.” The lump sum buyout is almost $600,000. Is it true that if we take the payments and both die – our 3 kids will get nothing?
My wife thinks we should take the guaranteed payments but I’m worried about possibly leaving our kids with nothing. What should we do?”
Gene answers your neighbors financial questions on More than Money. Send in your concerns: Gene@AskMtM.com