Pamela Yip: Be wary of pension advance offerings

Via The Dallas Morning News,

By Pamela Yip, The Dallas Morning News
April 24, 2015
Today, traditional pension benefits are gold for retirees who receive them, as they’re fast disappearing from the workplace.
But even with a pension, some retirees still struggle financially and sometimes have a need for extra cash because of unexpected bills or emergencies. Unfortunately, that’s when they can fall prey to companies seeking to take advantage of their desperation through a “pension advance.”
Also known as a pension sale, loan or buyout, a pension advance provides you a lump sum to meet your cash-flow needs. In return, you’re required to sign over all or some of your monthly pension checks for a period of time — often five to 10 years.

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