at the time of Retirement
Transcript, 2 minutes 25 seconds, for use during week of Feb.
Description: Penny and Susan discuss preparing for retirement
Announcer: Invest Wisely comes to you from Iowa State University
Extension through a grant from the Investor Protection trust,
providing investor education on the web at: investorprotection.org.
Susan: Penny, I’m still a few years from retiring, but
I’d like to ask you some questions about preparing as I
approach retirement age.
Penny: Great! As you're getting closer to retirement,
you're probably discovering that there are a number of decisions
you need to make.
Susan: Just where do I start?
Penny: Tell me a little about your current investments
Susan: Well, I have an investment plan at work and an Individual
Penny: Do you have any other investments that you've earmarked
Susan: A few.
Penny: Ok. Let's talk about your retirement plan at work. At
some point you'll have to make some choices about how you want
to receive the money you've accumulated in your retirement plan.
Susan: What sorts of choices?
Penny: Every plan will have its own rules. You can start
by checking with your benefits office to find out what rules
apply to your particular pension plan.
Susan: Aren't things pretty much the same for everyone when
Penny: I think you'll find that everyone's circumstances are
a little bit different. The best choices for you will depend
on your age and health, your investment skills, how important
security is to you, your tax situation, and the company’s
Susan: That's a lot to consider.
Penny: You'll want to take your time and be sure you make the
right decision for you. Some people take a lump sum and
invest the money themselves, some choose to roll over the amount
to a traditional IRA or to a Roth IRA depending on the circumstances. Some
pension plans may let you receive your payout as a lifetime annuity
or as a joint and survivor annuity where payments are made over
your lifetime and the lifetime of a designated survivor.
Susan: Thanks so much, Penny. This is a lot to think about. I'd
like to come back again and talk and ask more questions as I
prepare for retirement.
Penny: You’re welcome. And remember, for more information
visit the ISU Extension website at extension.iastate.edu and
look for ‘Invest Wisely.’