Created: September 11, 2020
Modified: September 21, 2022

Podcast Episode: 165 Best of Our Money Wisdom Questions Series

What You’ll Learn:
You see that here on our weekly podcast but have you looked around the JohnsonBrunetti website? We feature a number of different resources, but the one we wanted to highlight […]

You see that here on our weekly podcast but have you looked around the JohnsonBrunetti website? We feature a number of different resources, but the one we wanted to highlight today is our Money Wisdom Question Series. Very similar to our podcast, Joel answers the top retirement and financial questions our office receives and answers them on video for anyone to learn from.

In this episode, we decided to feature five of the best ones we’ve received.

Pension: Lump Sum or Guaranteed Monthly Check?

For those fortunate enough to have a pension, you might face the decision of whether to go with the lump sum payment or get a guaranteed monthly check for as long as you live. It’s great to have that guaranteed income but the downside is you lose control. By taking the lump sum, you can roll it over and control how much you take each month. You even have the option to start it and stop it as you need. So that’s the choice, guaranteed income versus flexibility and control and you’ll want to discuss that with a professional.

What Does it Cost to Work with a Financial Advisor?

It’s pretty simple. There are three ways advisors will get paid:

  1. Fee by the hour
  2. Fee-based on the size of the portfolio they’re managing.
  3. Commission-based

You also might get additional services under option number two so check with the advisor to see what they offer.

What is My Retirement Age?

That question could refer to either Social Security or a pension plan. Let’s start with Social Security. If you were born after 1954, your full retirement age is 67 but you can trigger your benefit between 62 and 70. Pensions are different and specific to the company you work for but most people base their benefits on retiring at age 65. All of this needs to be factored into the money you have saved and how much you’ll need to truly determine when you can retire.

What is a Fiduciary

There are two standards in our industry. The first is suitability, which means a stockbroker or insurance agent is required to sell you a product that’s suitable for you. The second is fiduciary, which is a higher standard. It means, from a legal standpoint, the person you’re dealing with has to act in your best interest.

What To Do with an Old 401(k)?

When you leave a company, what happens to your 401k? Well you basically have two choices: to leave the money behind in the 401k with the old company or roll it over into an IRA. There are benefits to each, but rolling it over gives you a lot more flexibility, control, and investment options. For most people that come to us, we prefer to roll that money over.

If you enjoyed these questions, please check out our Money Wisdom Question Series by clicking here. You can also subscribe to our YouTube channel to receive real-time updates when the next episode is live.

0:34 – Pension: Lump Sum or Guaranteed Stream of Payments

2:01 – What does it cost to work with a financial advisor

4:06 – What is my retirement age?

6:45 – Define Fiduciary

8:28 – What do I do with my 401k when I leave my company?

Thanks for listening to this episode. We’ll be back again next week for another show.

  • Sandy and Thomas C.
    Sandy & Thomas C. are clients of Johnson Brunetti and received no compensation for their statement.

    “We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”

  • Robert G.
    Robert G. is a client of Johnson Brunetti and received no compensation for his statement.

    “We’ve been clients of Johnson-Brunetti for > 10 years. We’re enjoying a comfortable retirement as a result. Many thanks to Joel and our CFP, Eric Hogarth. I wish we had plugged into this decade approach back when we were in our 30s.”

  • Lisa D.
    Lisa D. is a client of Johnson Brunetti and received no compensation for her statement.

    “Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”

  • Ken D.
    Ken D. is a client of Johnson Brunetti and received no compensation for his statement.

    “I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “

  • Jeanne P.
    Jeanne P. is a client of Johnson Brunetti and received no compensation for her statement.

    “Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”

  • Anonymous
    This testimonial was provided by a client of Johnson Brunetti and received no compensation for their statement.

    “I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”

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