By now you have heard of the Partial Lump Sum Option or what is referred to as the PLOP. Many of our clients ask us if the PLOP is right for them. After we analyze their retirement income plan we use our proprietary PFG Paystub Calculator to determine if the PLOP should be used and if so, what the optimal benefit is. When this step is complete our clients feel more confident about whether the PLOP is an option for them.
Reasons for taking a PLOP
- Reduce current taxes
- Leave money to heirs
- Create new wealth while maintaining pre-retirement income
The key to the PLOP is whether or not you can afford it. Many advisors will not take the time to help you to correctly determine this. If an advisor tells you to take the max PLOP without first determining whether you can afford it, please give us a call or use the contact form on the right to request a second opinion.