3 Personality Traits and DB Pension Plan Commuted Values

January 7, 2022

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When an individual makes the decision to take the Commuted Value of their Defined Benefit Pension Plan, they have decided to have a plan which pays themselves an amount equal to the guaranteed monthly payment they would have received from staying in the plan. This is HUGH undertaking with many possible benefits, but definitely not suitable for the following personality types:

 

The Big Spender: This individual likes spending money and may not have always been the best saver. A Commuted DBPP value could mean 1 - 3 million dollars instantly in your own investment accounts. EASY ACCESS and easy to make large withdrawals.

 

The Gambler: Any gambling or risk-taking characteristics are a definite negative.

 

The Lottery Player: A Commuted DBPP value could be treated like winning the lottery, and EASY COME, EASY GO!

 

We carefully review all investment scenarios and individual risks when discussing Commuted values. Taking the Commuted DBPP value could be a very good strategy for one individual and not advised for the next individual.

Thank you and Enjoy your day.


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