If you are a Boeing employee who is eligible for retirement, you may be wondering whether to take your pension as a monthly annuity or a lump sum payment. This is a big decision that can affect your financial security and lifestyle for the rest of your life. Lets compare the pros and cons of each option and help you make an informed choice.
The monthly annuity option provides you with a steady stream of income for as long as you live. You can choose from different payment plans, such as single life, joint and survivor, or period certain. The amount of your monthly payment depends on your age, years of service, salary history, and the payment plan you select..
The lump sum option gives you a one-time payment of the present value of your pension benefits. You can invest this money however you want and have more control over your finances. You can also leave some or all of it to your heirs if you pass away before spending it. However, the lump sum option also comes with some risks and challenges. With your advisor, manage your investments wisely and make sure they last for your lifetime. You also have to pay taxes on the lump sum amount and any investment earnings.
So how do you decide which option is best for you? There is no one-size-fits-all answer, as it depends on your personal situation and preferences. Some factors to consider are:
– Your life expectancy and health status
– Your expected expenses and income needs in retirement
– Your risk tolerance and investment strategy
– Your tax situation and estate planning goals
– Your spouse’s or beneficiary’s needs and wishes
To compare the two options more accurately, you should consult your financial advisor who can help you run different scenarios and projections. You should also review your Boeing retirement plan documents and contact the Boeing Pension Service Center, if necessary, for more information.
Choosing between a monthly annuity or a lump sum payment is a major decision that can have lasting consequences for your retirement. Make sure you weigh all the pros and cons carefully and seek professional advice if needed. Remember, this is your retirement, so know your options and choose what works best for you.
Sticker Shock over the Current Year’s Assessed Home Value in Washington State?
If you are a homeowner in Washington State, you may have received a notice from your county assessor’s office informing you of the assessed value of your property for the current year. This value is used to calculate your property taxes, which are due in April and October. You may have been surprised or even shocked by the increase in your assessed value, especially if you have not made any significant improvements to your home or land.
Why did your assessed value go up so much? The answer is simple: the real estate market in Washington State is hot. According to the Northwest Multiple Listing Service, the median sales price of single-family homes in Washington State increased by 23.6% from May 2020 to May 2021. The demand for housing is high, while the supply is low. This means that buyers are willing to pay more for properties, and sellers are getting multiple offers above the asking price.
The county assessors are required by law to value properties at 100% of their true and fair market value, based on the sales of comparable properties in the same area. The assessors use a mass appraisal method, which means that they apply statistical models to a large group of properties, rather than inspecting each property individually. The models take into account factors such as location, size, age, condition, and features of the properties.
If you disagree with your assessed value, you have the right to appeal it to the county board of equalization. You must file your appeal within 60 days of receiving your notice of value, or by July 1st, whichever is later. You must provide evidence that your property is overvalued, such as recent sales of similar properties in your neighborhood that sold for less than your assessed value. You can also hire an appraiser to conduct an independent valuation of your property.
However, before you file an appeal, you should consider some important points. First, an increase in your assessed value does not necessarily mean an increase in your property taxes. Your property taxes are determined by multiplying your assessed value by the tax rate, which is set by the various taxing districts in your area, such as the state, county, city, school district, fire district, etc. The tax rate may go up or down depending on the budget needs of these districts and the total assessed value of all properties in the district. If the total assessed value goes up, the tax rate may go down to keep the revenue constant. Therefore, you may end up paying the same or even less taxes than before.
Second, an increase in your assessed value means an increase in your home equity. Equity is the difference between what your home is worth and what you owe on it. If you have a mortgage on your property, you are building equity every time you make a payment and every time your home appreciates in value. Equity is a valuable asset that you can use to borrow money for home improvements, debt consolidation, education expenses, or other purposes. Equity also increases your net worth and your financial security.
Therefore, before you react negatively to your notice of value, you should look at the bigger picture and weigh the pros and cons of having a higher assessed value. You may find that it is not such a bad thing after all.