| Lump sum to forfiet pension? |
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Jeb G
New Member
Cash: $ 1.30
Posts: 6
Joined: 04 Aug 2016
Location: RI
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| Lump sum to forfiet pension? |
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Hi all, great site.
I'm mid 50's and plan to retire at 62. I just rcvd an offer from a former employer regarding my small pension. I'm torn as to what choices to make.
Option1) Take a $21,000 lump now. I'd roll it into my IRA and perhaps earn dividends of $75 (on average) per month?? (Main, PFF, and stag? for you investors)
Option 2) Stay the course and collect $222.00 monthly for life at age 65. This firm amount will not be adjusted for inflation.
Option 3) start collecting $117.00 a month for life right now. I guess I'd be ahead of the $222 option if I pass before age 77+/-. I'm still working and make about $78,000 now.
Unknowns of course: inflation, stock returns, and when I'll pass. Family history suggests I'll go in my mid to late 70's
Thanks Very Much,
Jeb
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Thu Aug 04, 2016 7:27 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
Option1) Take a $21,000 lump now. I'd roll it into my IRA and perhaps earn dividends of $75 (on average) per month?? (Main, PFF, and stag? for you investors)
I'd probably do a tax-free roll into the IRA. The goal would be to approximately double it in the 7 or 8 years to retirement. (Rule of 72) That gives you a better starting point ($42,000) than either of the annuities (when you add in the time-value of money).
Are you stag-day-trading inside the IRA? Or is the IRA money invested in a fund?
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Thu Aug 04, 2016 9:09 pm |
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Jeb G
New Member
Cash: $ 1.30
Posts: 6
Joined: 04 Aug 2016
Location: RI
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Thanks Oldguy for the reply. I've often mentioned the time value of money, but I drew a blank on that this time.
I've held STAG in my IRA for about 1 and a half years. I TRY to buy individual dividend stocks I can hold long term. I do have a few Index and managed funds. As far as value some do better than I do, some do worse.
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Fri Aug 05, 2016 2:17 am |
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