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View Poll Results: Portfolio or Pension ?
$2 million portfolio 33 41.77%
$80,000 yearly pension with COLA 32 40.51%
Not sure 14 17.72%
Voters: 79. You may not vote on this poll

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Pension or Portfolio ?
Old 10-23-2010, 06:37 PM   #1
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Pension or Portfolio ?

Which would you rather have a 2 million dollar portfolio or an $80,000 pension with cost of living adjustments but no health care ? . The pension receiver has no other assets .
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Old 10-23-2010, 06:52 PM   #2
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Who is providing the pension (Styrofoam Lawn Ornaments, Inc or the US Treasury)?
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Old 10-23-2010, 06:57 PM   #3
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Who is providing the pension (Styrofoam Lawn Ornaments, Inc or the US Treasury)?
Great point ! The pension is from the federal government .
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Old 10-23-2010, 07:05 PM   #4
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I think age might sway my choice but at 61 I voted for the 2M. This way there should be some money to leave to the kids. JMHO
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Old 10-23-2010, 07:07 PM   #5
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I'm confused. Are you specifying that with the pension you have no portfolio (i.e., no savings, just the pension)?
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Old 10-23-2010, 07:08 PM   #6
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This is a tough question. I voted "not sure" and look forward to the discussion under this thread...

Quote:
Originally Posted by Moemg View Post
Great point ! The pension is from the federal government .
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Old 10-23-2010, 07:08 PM   #7
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At what age? At 55, I take the pension. At 70, I take the cash.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

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Old 10-23-2010, 07:11 PM   #8
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That's a tough choice, but I picked the USG pension with COLA.

Better than either choice: split it equally in order to diversify and protect against various risks. $1 Million in savings and a $40K COLA'd pension.
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Old 10-23-2010, 07:15 PM   #9
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Better than either choice: split it equally in order to diversify and protect against various risks. $1 Million in savings and a $40K COLA'd pension.
I would probably vote for this in a borderline case, not knowing my age when I was given the choice. Which speaks well for a FERS-style retirement plan.
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Old 10-23-2010, 07:31 PM   #10
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I'll take the dollars. I'm 54, and unless I shuffle off this mortal coil sooner than I expect to, I should be able to grow my chunk of cash over the long run. I can do my SWR and still have the adjusted principal to leave to my heirs (DD and D Uncle Sam ). With the pension it ends when I do.
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Old 10-23-2010, 07:32 PM   #11
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Quote:
Originally Posted by braumeister View Post
I'm confused. Are you specifying that with the pension you have no portfolio (i.e., no savings, just the pension)?
Yes , you only have the pension . This is just hypothetical .
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Old 10-23-2010, 07:33 PM   #12
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At what age? At 55, I take the pension. At 70, I take the cash.

A great point I did not even think about I should have put in an age . I decided not to add an age so we could all relate it to our own age . I'd go with samclean's choice and take a little of each .
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Old 10-23-2010, 07:38 PM   #13
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I looked at it from from my current age of 55 and voted for the pension assuming it was 100% survival for spouse. I reckon I could save enough to leave a reasonable legacy if we wanted, given that DW and I expect a decent sum from SS also.
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Old 10-23-2010, 07:47 PM   #14
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I looked at it from from my current age of 55 and voted for the pension assuming it was 100% survival for spouse..

Another great point . I guess it has to be 100% survival to make it a reasonable choice . The reason I was wondering about this is because I have a pension and assets but during the melt down it was the security of the pension that let me sleep at night .
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Old 10-23-2010, 07:49 PM   #15
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I'm almost 55. Since my current earnings are less than the pension, I'd take that. Barring the (IMO) unlikely fall of the U.S. government, I'd be guaranteed never to outlive my money. I have no spouse or kids, so it doesn't really matter to me that the pension stops when I do. Anyway, since I wouldn't need the whole pension to live on, I could always set aside some of my benefit to leave to my nieces and/or to a favorite charity
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Old 10-23-2010, 08:03 PM   #16
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One interesting thing about this poll is that I'll bet if you asked it in (say) 1998, the results would be a LOT different.
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Old 10-23-2010, 08:17 PM   #17
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At what age? At 55, I take the pension. At 70, I take the cash.

I agree with this.
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Old 10-23-2010, 08:19 PM   #18
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Voted not sure.

It's too bad there is no 3rd choice: half and half, meaning $1M in the pocket and $40K/yr COLA'ed.

I am sure someone here has that half-n-half combination.
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Old 10-23-2010, 08:23 PM   #19
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At what age? At 55, I take the pension. At 70, I take the cash.
If the pension starts by age 55 then i'll take the pension otherwise i'll retire at 55 or earlier with the $2Million
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Old 10-23-2010, 08:33 PM   #20
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$2M. Because of the control it gives you. You can diversity your investments, shift money from one asset type to another, make some large capital investment, ... I'm a control freak.
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