Go | New | Find | Notify | Tools | Reply |
Go Vols! |
We are trying to figure out what to do with an old pension. The benefit is frozen. Current lump sum payout, which we would roll over: $15.7k 2032 early retirement $130/mo 2042 normal retirement $270/mo My thoughts are to take the payout into whatever retirement plan they allow. The current 403b or some type of IRA. | ||
|
Step by step walk the thousand mile road |
Fix annuity? Take the payout. You stand a chance of not watching its value evaporate when inflation hits 20%. Nice is overrated "It's every freedom-loving individual's duty to lie to the government." Airsoftguy, June 29, 2018 | |||
|
Only the strong survive |
Inflation kills an annuity. Roll it over into a 403b if possible. 41 | |||
|
No More Mr. Nice Guy |
Take the money and run. Having it under your control is way better than relying on the pension administrator. Finding a way to roll into a Roth could make sense. | |||
|
His Royal Hiney |
$15.7 k pay out for $130 monthly stream is roughly equivalent to a 10% annuity. That is not very generous. They’re saying they will give you $15,700 lump sum in exchange for their obligation to pay you $1560 a year. You have to earn 10% a year consistently. The only thing that has averaged 10% a year is the stock market with its risks and variable return year over year. I had an offer to swap a $300 pension at the equivalent rate of 6% in 2020. The payout was over $50,000. I took it then as I thought I could do better than 6%. I don’t regret my decision because I still have another pension worth $1400 a month. But one consideration in retirement is having multiple streams of income. Just like having a good mixture of non correlated investments such that if one goes down, others will come up. You won’t get the maximum payout but you’ll have a steady growth. That pension gives you a cushion of income stream you can rely on however small. I would wait until it’s fully matured. You should do an analysis on the growth rate until full pension. One way to do it is to see what the increase is for each year you delay. Divide the increase by the amount you are forgoing and it’s like you’re buying an annuity that pays you that much interest. For comparison, delaying social security past full retirement age gets you 8% more. If it’s anywhere above 6%, then it’s a good buy. "It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946. | |||
|
My other Sig is a Steyr. |
| |||
|
Member |
Hookers and blow? P229 | |||
|
Ammoholic |
Shit $15.7k that's a four day weekend in Vegas with hookers and blow. Scratch that... three day weekend due to inflation. Jesse Sic Semper Tyrannis | |||
|
Member |
For the win ! Lover of the US Constitution Wile E. Coyote School of DIY Disaster | |||
|
Powered by Social Strata |
Please Wait. Your request is being processed... |