Retirement Opinions What do you think

  1. Big question is, are there any other existing retirement assets? 401k, IRAs, etc.? If not, definitely go with the pension. $11k a month is solid. $1.6M, using the 4% safe-withdrawal rate, would only generate $5,333 a month. You would need $3.3M to generate that amount of monthly income. Also congratulations on retirement!

  2. lump sum, you can pay off your mortgage then do what you want with the rest. i'd put it all in a conservative dividend paying fund. you can live off your dividends and social security, never touch your principle, then pass down a nice inheritance to someone later on.

  3. Take lump sum! No guarantees you will get 1.6 out if you take 132k a year…..also my dad lost a% of his pension when the co he worked for for over 45 yrs bankrupted….. And yes- pay off mtg

  4. I don't know specific rules for withdrawal of funds from a pension vs lump sum, but purely from a math perspective and given your age, the lump sum is the way to go.

  5. Not always the case. Some pensions include an option for a reduced benefit to the retiree, which would translate to a continuing benefit for the surviving spouse and/or designated beneficiary.

  6. With this amount of money you should absolutely spend a little on a legit financial planner. They will get all pertinent information from you and lay out your options, pros/cons for each option, and explain their recommendation (and why) - and these people do this for a living, so they generally see how each option plays out for most people in the long run.

  7. This topic has been removed because it is a beginner topic or asking for advice (rule 2). We get too many of these topics every day and the community has asked us to prevent them from swamping the front page, so we are removing main threads of this kind.

  8. Average life expectancy for women 81, for men 77 in the USA. Assuming the longest case of being female and having 10 years expected life left: $11,000 x12 = $132,000 per year for 10 years you can expect $1,320,000 vs $1,600,000. I’d take the lump sum and put it in a safe investment. If your interest rate on the mortgage is higher than you can get on return in a safe investment with the 1.6 million then pay off the mortgage ASAP. Consider putting the money in a Trust ASAP. If you end up in a nursing home they will charge you based on your assets and they will drain you fast, a Trust may help mitigate the quick loss of your life savings should you need assistance. Cheers to your retirement!

  9. 11k a month posits that you'll live a long time. Not to be morbid, but when considering passing on an inheritance (assuming you have a family) the lump sum has merits. I would figure out your monthly needs, don't pay the mortgage as your interest rate is gar lower than inflation (free money), then see how you'd fare in both scenarios.

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