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Computation on What Insurance company can pay?
Old 12-21-2011, 03:31 PM   #1
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Computation on What Insurance company can pay?

Friends,
Here is my assignmnet to calculate the Yearly Pension given I am planning to invest 500K/250K (Full/half of my Nest egg), how do I calculate what insurance company can pay me for rest of my life say Life expetency left is 30 years more.
Amy computation on this will hep a lot.
Thanks
Mahag


Suppose you have reached retirement. You have saved a good
mount of money, say EUR 500,000.
You are now to make a comparison between two approaches to
using your wealth to see you through retirement:
  1. Establish what yearly pension a life insurance company is prepared to pay you for the rest of your life.
  2. You manage your wealth yourself. Set an amount you want to withdraw each year, and estimate what percent you can earn on the outstanding balance.
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Old 12-21-2011, 03:36 PM   #2
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Welcome to the site, I moved your thread from the Health forum to the Money forum.

Since your profile says California and your question is in Euros, does this mean you need to take account of exchange rates?
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Old 12-21-2011, 04:52 PM   #3
Confused about dryer sheets
 
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Thanks Alan,
I can assume any currency, need not to worry about the FOREX for now.
Thx
Maha
Quote:
Originally Posted by Alan View Post
Welcome to the site, I moved your thread from the Health forum to the Money forum.

Since your profile says California and your question is in Euros, does this mean you need to take account of exchange rates?
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Old 12-21-2011, 05:24 PM   #4
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Quote:
Originally Posted by mahag View Post
[to calculate the Yearly Pension given I am planning to invest 500K/250K (Full/half of my Nest egg), how do I calculate what insurance company can pay me for rest of my life say Life expetency left is 30 years more.
The simplest answer is to go to Immediate Annuities - Instant Annuity Quote Calculator. and plug in your numbers.

That will at least get you in an approximate range of what to expect.
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Old 12-22-2011, 07:26 PM   #5
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I agree with braumeister. If you've got a Vanguard account, you can try this:
https://personal.vanguard.com/us/wha...ome-comparison
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Old 02-05-2013, 06:04 AM   #6
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Hey Mahag, I got the same question as an assignment. I was wondering if you could tell me how you structured it?
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Old 02-05-2013, 06:11 AM   #7
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Quote:
Originally Posted by Velocity View Post
Hey Mahag, I got the same question as an assignment. I was wondering if you could tell me how you structured it?
Velocity, this thread is more than a year old and Mahag hasn't been back since posting the question, so it looks like you're on your own for the assignment. You'll learn more that way
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Old 02-05-2013, 09:56 AM   #8
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Thank you. Could you advise me on how I might delete my account.
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