Solutions 4 Financial Independence:02/15/18

By  | 

BRIDGEPORT, W.Va (WDTV)- Question: I have an investment with a guaranteed retirement income. I would like to take a one-time lump-some of $100,000 from it. Can this be done?

Answer (John Halterman-Beacon Wealth Management): "You have to remember this, this is your money so you definitely can do it. It is not a matter of can it be done, it is really a matter of what the impact is going to be on you and what the unintended consequences would be."

Question: What would the impact be?

Answer (John Halterman-Beacon Wealth Management): "When you have a guarantee, especially as retirement income, there is usually a parameters set on that.

Let's say a person had $500,000 and a 5% income guarantee. If he was taking $25,000 out of it a year, what happens is that the guarantee is based on his account staying at $500,000 and you staying within the $25,000 parameters. Well, if you take $100,000 out, then that will lower the income guarantee or could even potentially make it obsolete.

You have to be careful because if you are already maxing it out you may not have that availability. The whole idea is that you are paying an extra fee, and because you are paying an extra fee, you are being a trade-off of this guarantee.

So you do not what to ruin it by doing things that are being beyond the parameters and not making it worth the money you are paying."