Audiobook
Listen to Chapter 1
"The more detailed the plan, the easier the trip."
— Henry Ford
Have you ever heard the phrase "the sixty-four-thousand-dollar question" before? It dates all the way back to the 1940s and was the question asked at the climax of the British radio quiz show Take it or Leave it. This question was later popularized in the United States during the 1950s on the game show The $64,000 Question.
If you were to use this phrase today when talking to your kids or grandkids, they might look at you a bit funny, as they're likely more familiar with the 1999 version of the phrase—"the million-dollar question"—from Who Wants to Be a Millionaire?
Who Wants to Be a Millionaire?
The dramatic question that changed everything
We all remember this show: the unique set, the stage lighting, the intense sound effects, and of course, the dramatic, drawn-out pauses Regis Philbin would make after asking, "Is that your final answer?"
The contestant would have the choice to walk away with money in hand or continue risking it as they advanced in the game. Rarely, the contestant would make it to the million-dollar question, and if they got the question wrong, they would fall all the way back down to $32,000; but if they got it right, they walked away with a life-changing sum of money.
Your Million-Dollar Decision
As an autoworker, you may be faced with a similar million-dollar decision at retirement. If it's not quite a million dollars, it's still likely a significant sum of money that could impact your family for generations to come. Now, you won't have the award-winning gameshow host or the dramatic lighting as you face this decision, but for some who haven't thought through their plan, it can certainly feel that way.
To take it a step further, when planning out your retirement, you will most likely be faced with not only one million-dollar question, but several:
Do I take the lifetime pension or the lump sum?
If I take the lump sum, how can I keep it protected from market volatility while still generating consistent income?
What do I do with my 401(k) when I retire?
When do I take my Social Security?
How do I find a trusted advisor to help with all of this?
What This Book Will Cover
These are some of the most crucial financial decisions you'll face in your lifetime, and you want to make sure you get them right. This book will primarily focus on the decision to take your pension in the form of monthly payments—as it was originally promised to you when your employment began—or as a lump sum one-time payment and roll it over into an Individual Retirement Account (IRA). We'll then discuss how you can incorporate this along with your other investments and Social Security into your overall income plan.
It is important to understand you are not alone in this decision. This book was written to help you better understand the pros and cons of the choices you have. The decision of taking your lump sum or not is a decision that many people have had to make, and quite frankly, one that many people are intimidated by.
Our Promise to You
Our hope is that as you read through this book, your peace of mind increases, and your anxiety diminishes. The goal of this book is not to sway you in one direction or the other—it's to use our experience in the industry to help alleviate some of the stress this decision may cause you.
We have designed this guide to provide you with the basics you'll need to help in your decision making.
Congratulations—You've Made It
Just like in Who Wants to Be a Millionaire, it's a rarity for someone to make it to the end to answer the million-dollar question, and you've done just that.
You've Earned This Moment
If you're reading this book, you've made it through a long career in the auto industry and are facing this life-changing decision. It's a good thing, but approach it cautiously, carefully evaluate your options, and most importantly, take a deep breath.
What's Ahead in This Guide
Understanding Your Options
Pension vs. lump sum explained clearly
Key Decision Factors
The 5 questions that matter most
Planning Opportunities
Tax strategies and timing considerations
Finding the Right Help
How to choose a trusted advisor