The economy has seen several noticeable repercussions in response to the Federal Reserve’s efforts to combat inflation by raising interest rates. New loan rates for the purchase of automobiles and mortgages have increased in the past 18 months. However, interest rates offered to savers have also increased, putting more money back into their pockets.
Pension vs. Lump Sum Payout
Many retirees face similar dilemmas with the pension or lump-sum decision driven by corporations trying to reduce debt. Is it better to let your old employer manage your pension money or to let you handle it? The choice you make is a potentially life-changing decision. In addition, it is often made in haste since employees often don’t have much time to decide, and many do not have access to objective financial advice. These decisions are typically irrevocable.