ANNAPOLIS, Md., Aug. 16, 2012 /PRNewswire/ -- Scarborough Capital Management is hosting a series of webinars and seminars to assist and advise retirees and pre-retirees in making decisions about whether to accept recent lump-sum pension buyouts offered by employers Alcatel-Lucent, Ford Motor Company, NCR Corporation, and FedEx.
In total, the companies are offering more than 100,000 employees the opportunity to accept a pension buyout:
- Ford is offering 90,000 retirees a pension buyout.
- Alcatel-Lucent is offering certain eligible former employees who are not currently receiving a pension, a lump-sum buyout.
- NCR is offering former employees the chance to take the money they are owed in lump-sum payments. NCR expects about 70 percent of 23,000 eligible former employees to accept the payment, available for former workers who are not currently drawing from their pensions.
- FedEx recently announced the offering of voluntary pension buyouts to employees and retirees. Experts are unsure of the magnitude of employees and retirees this development will impact.
"A pension buyout offer should not be taken lightly. There are many factors to consider when debating whether or not to accept a pension buyout," said Scarborough Capital Management President and CEO Mike Scarborough. "I encourage each individual who receives a pension buyout offer to speak with a trusted financial professional before making a final decision, even if they believe their decision has already been made."
According to Scarborough, who has been managing 401(k) and 403(b) plans for employees at some of the nation's largest companies for 23 years, things to consider include:
- Assess your personal ability to manage the money on your own. There is no one right answer for all people facing this decision. Make a list of the pros and cons of taking the lump-sum payment. Are you confident that you will be able to make the best investment decisions on your own? "Studies show employees with professional 401(k) and 403(b) management are closer to their retirement goals than those who do it on their own," Scarborough said.
- Look at your numbers. Try to project your retirement income needs based on your health, probable longevity, marital situation, etc. Does the monthly pension payment make more sense for you than the lump-sum payment? "The answer may be trickier that you think," Scarborough said. "Try to make an apples-to-apples comparison."
- Don't just listen to the crowd. "People in your workplace or family circle may be urging you to take the money (or, to conversely, not take the money). This is a big decision and you may not get another chance to consider and opt in for the lump sum," said Scarborough, who added that for many people this is a golden opportunity to really maximize their financial well being in retirement.
Scarborough Capital Management will be conducting seminars in various locations across the country. At each meeting, they will explain the terms of the pertinent company's recent lump-sum offer, discuss suitable options and provide the opportunity for attendees to ask questions.
The informational Webinars for individuals facing a pension buyout decision will be held as follows:
- Ford Motor Company
Please visit www.401kadvice.com for additional dates/times/locations.
To register for a webinar or for more information call Scarborough Capital Management at 800-200-3870 x 1159 or email Alexandra Forsman at [email protected].
To listen to a podcast interview with Mike Scarborough and Greg Ostrowski about questions Alcatel-Lucent, Ford, NCR, and FedEx retirees should consider before accepting an offer, visit http://tinyurl.com/scarborough-pension-buyouts.
Complimentary 30-minute consultations are also available upon request. To schedule, contact Alexandra Forsman at [email protected] or call 800-200-3870 x 1159.
TIPS FOR RETIRED AND/OR CURRENT EMPLOYEES WHO ARE BEING OFFERED A PENSION BUY-OUT
In this 5-minute audio interview, Scarborough Capital Management's Mike Scarborough and Greg Ostrowski provide tips and key questions that retirees should ask:
About Scarborough Capital Management
Scarborough Capital Management provides comprehensive financial advisory services, including 401(k) Management, Investment Management, Financial Planning, Retirement Income Management, Estate Planning, and Risk Management. Dedicated to helping people prepare for retirement, Scarborough Capital Management developed its signature 401(k) and 403(b) Savings Plan Management service for employees participating in their company retirement plans. Currently, the firm works with thousands of individuals at over 125 different plans ranging from Fortune 500 companies to small and midsized businesses. Please visit www.401kadvice.com for more information.
Disclosures: Securities offered through SII Investments, Inc.(SII), Member FINRA, SIPC. Advisory services offered through Scarborough Capital Management, Inc. (SCM), a Registered Investment Advisor. SII and SCM are separate companies. These events are neither sponsored nor endorsed by Alcatel-Lucent, NCR, Ford Motor Company, or FedEx.
SOURCE Scarborough Capital Management