Well, you’ve worked hard for many years and retirement is just around the corner. You have been accruing money all along in a nest egg and the company has been contributing to it, matching dollar for dollar. As the big day of stopping work approaches, you had better be prepared to do something with the windfall you are hoping will arrive. Most of us just go to work day after day not thinking about pensions, IRA’s, and 401 accounts. We figure that when we retire that, somehow, the accumulated money will go where we want it to go while we sip our umbrella drinks by the pool. Unfortunately, that nice nest egg will need some tending to if we want to enjoy our retirement years. Here are some suggestions to guide us in what to do with our money once we begin our hard earned retirement.

1) We can leave it where it is to keep earning interest if your plan has that option. If you don’t have immediate use for the money for living expenses, then it might be a good idea to let it keep working for you until a later time when the money is needed.

2) We could take the whole amount that is due us, but remember that taxes will be due on the entire amount – as if you earned the whole amount in one year. This is not a wise move since the tax bite will take an inordinate amount from your retirement nest egg. However, should you need the money for something right now, then this may be an option.

3) We could roll over the amount into another financial vehicle that would be more "user friendly". If you have reached sixty years of age, you may be able to take distributions from your IRA or other account. The money will come in monthly amounts that you have directed and your tax bite will be considerably less than taking a lump sum distribution. Rollovers (check with your financial institutions first to ascertain that there are no penalties or other charges) must be done within sixty days from one account to another and they are usually beneficial.

4) If we desire to keep on working, it may be in another job setting. Transferring your account to the new employer is the best option if the parameters of the plan remain the same (or better). Having a job these days is a rare privilege; most people realize that staying employed, even in a less than full capacity situation, is a good thing. Also, staying employed allows your nest egg to continue to build for that time in the future when you want to relax by the pool with your umbrella drink.