- Tax Planning
- Investments 1: Before you Invest
- Investments 2: Your Investment Plan
- Investments 3: Securities Market Basics
- Investments 4: Bond Basics
- Investments 5: Stock Basics
- Investments 6: Mutual Fund Basics
- Investments 7: Building Your Portfolio
- Investments 8: Picking Financial Assets
- Investments 9: Portfolio Rebalancing and Reporting
- Retirement 1: Basics
- Introduction
- Describe How Retirement Planning Fits into Your Personal Financial Plan
- Understand the Principles of Successful Retirement Planning
- Describe Payout Options Available at Retirement
- Explain the Steps of Successful Retirement Planning
- Understand One Method of Monitoring Your Retirement Planning Progress
- Summary
- Assignments
- Retirement 2: Social Security
- Retirement 3: Employer Qualified Plans
- Retirement 4: Individual and Small Business Plans
- Estate Planning Basics
Types of Retirement Payouts
There are several types of retirement payouts available to you when you retire. A single life annuity provides equal payments for as long as you live.
A life annuity with certain period provides payments as long as you live; however, with this option, when you die your heirs receive payments until the end of the specified or guaranteed period.
A joint and survivor annuity means that payments will continue as long as you or your spouse is alive. In some cases, the benefits may be reduced when you die, so review your options carefully.
A lump-sum payout is a single payment of all principal and accumulated interest; it is paid to you when you retire . Note carefully that a lump-sum payout is normally taxed as ordinary income.
Deciding how you want to receive your payout is critical, and once the decision is made, it usually cannot be changed. You must make the decision after doing as much research as possible; when making this decision, you should also account for your goals, budget, family situation, and current health.
