Audiobook
Listen to the Conclusion
"I feel pretty good. I never thought I'd live this long. They told me in 1960 that I had less than five years to live."
— Carroll Shelby
As these chapters have laid out, you are facing several life-changing decisions at retirement — decisions that may be among the most important you will ever make, with financial and quality-of-life consequences that, quite literally, last a lifetime (or longer, given how the SECURE Act now affects the wealth you pass on).
The original edition of this book opened with five million-dollar questions. The framework hasn't changed, but the landscape around it has. For this 2026 edition, here are the questions every Big Three retiree should be answering:
The Six Million-Dollar Questions
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, inflation-aware income?
What do I do with my 401(k) — and how do I integrate Net Unrealized Appreciation (NUA), Roth conversions, and the new SECURE 2.0 rules?
When do I take my Social Security — and how does that decision interact with my Roth conversion window?
How do I bridge healthcare from retirement to Medicare, and how do I plan for long-term care?
How do I find a trusted fiduciary advisor to help with all of this?
Take a Breath
Please do your best not to get overwhelmed or anxious. When retirement arrives, you'll have an immediate decision to make: monthly payments, or lump sum? That's the first question. It's your pension, and your choice.
Your pension is a promise that the company made to you when your employment began — to provide you with money when you retire. Because the company has made that promise, at some point in the future they will have to pay it out. That's good news.
Your decision to take the lump sum has definite advantages for the company. They'd rather not have that future liability sitting on their balance sheet, and they'd rather be done with it. That's why lump sums are offered — and why the trend of pension risk transfers is accelerating. But it's not a trick or a scam. The lump-sum offer is a fair actuarial calculation. The decisions belong to you.
Monthly Payout
The risk stays with the company — or, if your plan is eventually transferred, with the insurance company that takes it on (with state guaranty association protection replacing the PBGC backstop). You receive a steady, predictable stream of income.
Lump Sum
You have many potential benefits — but you're now responsible for investing the money. In other words: it's on you.
What's Different About This 2026 Edition
When we wrote the original edition of this book in 2019, we couldn't have predicted everything that would come next:
The COVID-19 pandemic and the historic crash and recovery
The 40-year inflation spike
The most aggressive Fed tightening cycle in modern history
The worst combined year for stocks and bonds in decades
SECURE Act & SECURE 2.0 — eliminating stretch IRAs, raising RMD ages, modernizing 72(t), ending Roth 401(k) RMDs
Every chapter of this updated edition has been refreshed to reflect these changes. What hasn't changed is all the decisions that come with being a Big Three Retiree. We truly hope this book helps you on your journey.
You Are Not Alone
As you contemplate how to proceed, carefully evaluating your options is essential to making an informed decision. There are a number of questions worth considering:
Are you responsible with money?
How will you invest this money in combination with your 401(k)?
How will you generate income from this money in combination with Social Security?
How will your decision affect those you love, given the SECURE Act 10-year rule?
How are you bridging healthcare from retirement to Medicare?
How can you find an advisor to help with all of this?
You Have a Lifeline
As you sit in the hot seat and answer these potential million-dollar questions, please remember: you have us as a lifeline. We can help narrow these options for you and give you our honest, fiduciary advice.
We'll run a Retirement Income Analysis, which will provide you with a clear understanding of the impact of each of your choices. There are risks and rewards with both options — whether you elect the lump sum or the monthly pension.
This is not a cookie-cutter decision. One size does not fit all. Every individual's circumstances differ from those of family members, co-workers, and neighbors.
We can't emphasize enough how important it is for you to put this decision in financial context, specific to your own circumstances and goals. The best way to do that is to have an overall retirement plan. Having an analysis done in accordance with the standards of a CERTIFIED FINANCIAL PLANNER™ professional can make a significant difference as you weigh the most consequential financial decision of your career.
Thank You
Thank you for picking up this book — or, in many cases, for reading it free at bigthreeretiree.com/book. We made the entire updated edition available online for free, with no email required, because we believe Big Three retirees deserve straightforward, accessible information when facing this decision. The book is the start of the conversation, not the sale.
We've tried to present the material here in an easy-to-understand way — one that provides you with an effective framework to move through your decision-making process. We've suggested ways for you to evaluate your choices, understand your options, and make the best possible decision for you and your family.
This is your decision. Every circumstance — financial and otherwise — is different. But there are steps you can take, as we've laid out clearly and concisely, that provide the facts you need to make an informed decision.
Knowing the critical questions to ask. Being aware of the data and analysis that can inform your decision. Understanding that it's worth the time, effort, and energy to proceed along the steps we've outlined. All of it can give you the confidence you need to make your decision.
A Personal Note from the Authors
We have helped a great many clients at Richard W. Paul & Associates respond to these critical retirement decisions. For many of our clients, they've been trying to accumulate as much money as possible during their working years and haven't given much thought to the decisions that come at retirement until those decisions are suddenly upon them. All of a sudden, they have to make calls that will shape the rest of their financial lives.
Our firm has extensive experience working with retirees — and soon-to-be retirees — across a wide range of circumstances. Much of the wisdom we offer in this book comes from understanding what other retirees have already gone through.
As the saying goes, knowledge is power. Through our experience and professional expertise, we seek to empower you — and to walk with you, every step of the way. The importance of these decisions cannot be overstated. What you decide will have ramifications for your financial security and quality of life. But you absolutely can make a wise decision — one that is best for you.
Again, thank you for spending time with this book and the information shared within it. Please keep in mind the steps we've outlined, and don't hesitate to turn to us for help.
That's why we're here.
Congratulations — and cheers to a successful retirement.
— Richard Paul, CFP®
— Steven Paul, CFP®
Novi, Michigan • 2026 Updated Edition
If there is anyone you know who you think would find this book helpful, please have them visit bigthreeretiree.com/book to read it free in full, online, or to request a paperback copy.
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