Episode 16: Listener Questions – Lump Sum Payments, and Adding Your Child To Your Accounts

In this month’s listener question episode, Devin and John talk about the best way to set your child up to help you with your financial affairs, and whether you should take a lump sum payment from your pension.

Wanda says, “I’m thinking about adding my son to my checking account, but my financial planner told me that I shouldn’t.”  Good question!  Should you add your child to your checking account so that they can help you with your finances?  It seems smart, but there are many reasons why you might not want to do this.  In short, you don’t want to expose your assets to your child’s problems!  Everything from car accidents to child support can create liability.  Protect your money and investments by choosing one the other options for giving another person the authority to help you with your financial matters.

Brenda asks, “Should I take my pension in a lump sum?”  If you have a traditional pension, you may have this option.  Why would you want to take it, or why would you not want to take it?  The landscape is changing, and the “old wisdom” doesn’t always work anymore.  Plus, the math doesn’t tell the whole story. This is a big decision, and you want to be sure you’re considering all the factors that are involved.

If you want us to address your question on the air, send them to questions@bigpictureretirement.net.