Your Retirement Package Has Arrived. What to Do?

Editor's note: This column first appeared in The Save Safe Plan on Friday, May 2. For more information on The Save Safe Plan, click here.

I was just offered a retirement package by my company, Verizon Communications(VZ - Cramer's Take - Stockpickr). I have worked for them for almost 35 years. In this package they offer a lump-sum payout. I like the idea, but need to put this money somewhere where I can have monthly income to live on.

Unfortunately I don't have anything else to fall back on. I can kick myself for not planning for my retirement sooner, but this is what I have to work with. Any idea as to where I can put this $440,000 if I do retire? Thanks. -- Ray

You want investment advice? I'll get you investment advice.

The following two professionals offer up some ideas on what to do with that money.

And the best part is: You won't be getting a bill in the mail.

Ron Roge: Worry About Taxes First

"You have to go through an awful lot before you decide on investments for this money," says Ron Roge, a financial advisor with R.W. Roge & Co. in Bohemia, N.Y.

And taxes should be the first thing on your mind.

If you're taking a lump-sum distribution from a retirement plan, you may want to roll that money into an IRA to postpone paying income taxes on that amount.

"Assuming that taxes haven't been paid on this money, you can deduct about 40% in taxes from that amount," says Roge. "Eventually you will owe the taxes. But if you move the money to an IRA, the full amount can continue working for you and producing income for longer."

And frankly, finding another job might be the next choice you want to make.

"You could live another 40 to 45 years. That money has to last," says Roge. "Taking into account taxes, inflation and your own living expenses, this isn't going to go very far. You will probably deplete it quickly."

Working more to save more might be the only option.