Updated: Free Seminars for 90,000 Ford Retirees Facing the Biggest Financial Decision of their Lives: Ford Pension Buyout
Editor's Note: This announcement was updated to reflect that the free seminar dates were postponed to Tuesday, Aug. 21 at the Westin Southfield, 5:30-7:30 p.m., and Thursday, Aug. 23 at the Birmingham Community House, from 8:30-10:30 a.m.
Financial planning expert Steve Case, of Financial Independence, is helping retirees navigate the lump sum or monthly check options during the largest voluntary buyout in history
Bloomfield Hills, Michigan (July 31, 2012) – For around 90,000 white-collar retirees from Ford Motor Company, this August holds a major financial decision: to take or not to take the buyout. And according to Steve Case, a successful financial planner for over 25 years in Metro Detroit, this decision can make the difference between a comfortable retirement and one where the money simply runs out.
Scheduled to start on August 1, 2012, during the largest voluntary buyout in history – designed to release Ford from its massive pension obligations - retired employees will be given a chance to manage their own retirement funds or keep with a monthly sum.
“Without expert help looking at the details of an individual’s family, their health, finances, lifestyle they want to live and also financial dependents, it can be a very risky decision,” explained Case, 47, from Lake Angelus. “It is also incredibly important to take inflation into account. For example, if someone is going to be getting $3,000 a month, that might sound acceptable, but not when inflation is factored in. It’s about strategies and we can help inflation-proof the numbers.”
Case said that he can help clients design a portfolio to allow them to retire successfully and not make major mistakes. “For some people, taking the lump sum will mean having more money than they have ever had, but there are hazards in effectively being the CFO of your own retirement,” said Case. “For example, if an individual just got a check made out to them personally instead of having it rolled into another pension, IRA or CD they would face a huge tax bill. If that happens they would be giving up 40 per cent of their retirement funds to the IRS!”
In his professional life, Case has seen time and time again individuals who have taken advice from friends and family, rather than a professional. “The overall ramifications of some decisions may not be appreciated at the time - but the effects can be huge,” said Case, who will be offering two free financial seminars for Ford retirees in August to help them avoid such pitfalls.
“It’s a time for important choices for this group of people who have spent their working lives at one of the greatest car companies in the world,” said Case. “It’s a chance to ensure financial security in their older years.”
The first seminar will be on Tuesday, Aug. 21 at the Westin Southfield, from 5:30-7:30 p.m., and the second is set for Thursday, Aug. 23 at the Birmingham Community House, from 8:30-10:30 a.m. To join the seminars, simply pre-register at www.fordpensionadvice.com