Do you ever think about wealth management? Not many people know what it is, or why they would want it. Wealth management is the use of financial services to get the most from your money. This includes most any financial services, such as tax maximization and investment management. If you think, "How could I get more from the money I've made?", then wealth management may be just the thing for you. To learn if you would appreciate wealth management services, contact an independent financial advisor.
Plan Your Pension the Right Way - Choose a Lump Sum
As many wealth management clients reach retirement age, an important question usually comes up: Should I receive my pension in one payout, or in regular payments? Of course there are bound to be special cases, but typically, you'll get more for your money by taking your pension in one lump sum and re-investing it elsewhere. Here is the reasons why:
- Emergencies: If you have decided to get monthly payments, there's no option to convert to a lump sum or "get an advance". Having extra liquidity in the case of an emergency is a valuable factor for many, and an important factor in planning your future.
- The underlying investments: When you are given employer-based pension, you typically aren't aware of the underlying investments. Often times, the underlying investments do not make sense with your risk appetite. By opting for a lump sum and re-investing in a different retirement plan, you stand to earn more from your savings and, more importantly, be in control.
- Taxes: Although there might be some tax credits that you miss by choosing a lump sum, re-investment into an IRA or Roth IRA yields more tax breaks than taking monthly payments.
An independent financial advisor can advise you on this wealth management decisions.
You can hear more about wealth management advisor Kenner LA with only one click. Contact an independent financial advisor for wealth management services. Get the most that you can for your money.