As a fiduciary financial advisor in Greensboro, Holland Capital helps long-career employees nearing retirement decide between a pension lump sum and monthly payments, and plan the rest of retirement around that choice. We work with clients in Greensboro by video and phone, and meet in person by appointment at the Regus center on West Friendly Avenue in Greensboro.
The pension choice shapes everything after it.
Greensboro is the largest city in the Triad, with about 309,000 people.
If your employer’s pension offers a lump sum, you may have to choose between taking it and receiving monthly payments for life.
It is often a one-time decision. It also connects to your 401(k), your Social Security and the rest of your plan.
Lump Sum or Monthly Payments
Monthly payments can provide income for life, and you do not have to invest the money yourself.
A lump sum gives you control. You can invest it, draw on it as needed and leave what remains to your heirs. It also means the money has to last, and investment risk is yours.
The lump sum amount depends on the interest rates used in the plan’s formula. When rates are higher, the same pension is usually worth a smaller lump sum.
Our guide on pension lump sum or annuity compares the two in more detail.
Protecting a Spouse
If you are married and take monthly payments, you will usually choose a survivor option. A larger survivor benefit means a smaller monthly payment while you are both alive.
For most private pension plans, your spouse must agree in writing if you choose a payment that does not include a survivor benefit.
A lump sum handles this differently. Whatever remains in the account can pass to your spouse or other heirs.
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Fitting the Choice into Your Plan
An eligible lump sum can generally be moved directly to an IRA without being taxed right away. If the check is paid to you instead, 20% is generally withheld for federal tax.
The pension choice also changes how you use your other savings and when to claim Social Security. A monthly pension can make it easier to wait to claim, which can raise your Social Security benefit.
Our guide on when to claim Social Security covers the timing.
At Holland Capital, investment management for a lump sum is built around the income it needs to provide.
How We Work with Clients in Greensboro
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your pension election packet or benefit estimate, your 401(k) statement, your Social Security estimate, any other account statements and a rough monthly budget.
We compare the lump sum and each monthly option, and show how each would fit your income plan.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Greensboro, we meet by appointment at the Regus center at 516 West Friendly Avenue in downtown Greensboro, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Greensboro.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
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Frequently Asked Questions
How Are You Paid, and Do You Earn Commissions?
Advisory work is paid by fee: financial planning is offered for a fixed fee once the scope is clear, and investment management is an advisory fee based on the assets we manage. The firm is also licensed to provide insurance solutions, and when a client purchases an insurance policy, the firm may receive a commission. We are not fee-only. We act as a fiduciary when we give planning and investment advice, and you see the cost in writing before you decide anything.
Why Get Fiduciary Advice Before Taking a Pension Lump Sum?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. A lump sum moved to an account we manage would pay us a fee, so we explain that before you decide.
Monthly payments are sometimes the better choice. Our guide on the risks of taking a pension lump sum explains what is at stake.
Where Would We Meet in Greensboro?
At the Regus center at 516 West Friendly Avenue downtown. Meetings are by appointment.
We can also start by video or phone while you gather your pension papers.
Photo: Mx. Granger / Wikimedia Commons / CC0, cropped.
