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Pension option: which one to take (lump sum or annual pension)
| frozen curious kitty forum | 07/21/15 |
| frozen curious kitty forum | 07/21/15 |
| bossy carmine potus ticket booth | 07/21/15 |
| frozen curious kitty forum | 07/21/15 |
| bossy carmine potus ticket booth | 07/21/15 |
| jade cuckoldry | 07/21/15 |
| titillating hateful corn cake | 07/21/15 |
| cream casino | 07/21/15 |
| Boyish idiotic double fault | 07/21/15 |
| vibrant partner | 07/21/15 |
| Racy crystalline house really tough guy | 07/21/15 |
Poast new message in this thread
Date: July 21st, 2015 5:45 PM Author: frozen curious kitty forum This is for my 45-year old cousin. He is being given an option of taking an immediate annuity pension (it'll begin paying the minute he separates at age 45) of $24,275 per year, no cola, or a lump sum of $304,800 to be rolled over into an IRA. Finance bros, what's the better option? I should note that he's not disabled or anything; he's moving out of state. He got a job as a construction foreman making around 60k/year. |
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Date: July 21st, 2015 6:15 PM Author: frozen curious kitty forum Can you math bros run the hypos for either case? Thanks (http://www.autoadmit.com/thread.php?thread_id=2942353&forum_id=2#28384102) |
Date: July 21st, 2015 5:54 PM Author: bossy carmine potus ticket booth Isn't this an easy case of the long term market return on the lump sum with capitalized interest pwning the annuity? (http://www.autoadmit.com/thread.php?thread_id=2942353&forum_id=2#28383976) |
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Date: July 21st, 2015 6:03 PM Author: frozen curious kitty forum He could also invest the 24k per year. (http://www.autoadmit.com/thread.php?thread_id=2942353&forum_id=2#28384030) |
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Date: July 21st, 2015 6:12 PM Author: bossy carmine potus ticket booth Sure, but capitalized interest on the $300k is going to pwn the annuity over the 10-12 years it takes him to match the initial principal.
I guess it's conceivable that an annuity could eventually overtake the lump sum, particularly if the market is historically bad for many years, but seems unlikely. |
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Date: July 21st, 2015 6:17 PM Author: jade cuckoldry Take the 24k and invest it all each year
But realistically he will buy a boat/truck etc |
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Date: July 21st, 2015 6:18 PM Author: titillating hateful corn cake ESTIMATE how long your cousin can expect to life.
Annuities are for people who are likely to outlive the average life expectancy. Healthy people with good genetics should get annuities. Everyone else should get the lump sum. |
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Date: July 21st, 2015 6:40 PM Author: cream casino Annuity
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Date: July 21st, 2015 6:54 PM Author: Boyish idiotic double fault he'll blow the $300k in a year through a combination of crazy investments and nigger rich purchases take the $25k annuity because more likely he'll spend it wisely or save a bit each year until inflation eats it away |
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Date: July 21st, 2015 6:56 PM Author: vibrant partner THIS.
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Date: July 21st, 2015 6:55 PM Author: Racy crystalline house really tough guy RSF, here's your wingman! (http://www.autoadmit.com/thread.php?thread_id=2942353&forum_id=2#28384331) |