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Re: Defined Benefit Plan impact on RE
Old 01-12-2006, 03:53 PM   #21
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Re: Defined Benefit Plan impact on RE

We have 3 DBs.

Mine with the military/reserves (COLA) started last year and I use it to fund the Roth IRA for me and DW. The rest goes into a MMF to pay for this and that. It is probably enough to live off of if we needed to and really scrimped.*

My 2nd DB is not COLA and I will phase it in in a few years when DW decides that she is fed up with the local school system, until then it continues to grow if I don't touch it.

DW has a BD plan with the school system.

When all 3 DB plans are cranking along, along with our two SS checks, we will have an income stream that is well over 100% of our expenses.

What the heck are we going to do with the IRA, 401k, 403b, Roth and taxable money*

Oh damn...more decisions.

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Re: Defined Benefit Plan impact on RE
Old 01-12-2006, 06:47 PM   #22
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Re: Defined Benefit Plan impact on RE

I am 47 and will be retiring in a few years.

Expected income :

85% IRA (rollover of job 401ks), all in income producing stocks,
using 72t withdrawals
15% Regular Stock account dividends

learn, work, save, invest, fire
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Re: Defined Benefit Plan impact on RE
Old 01-12-2006, 10:45 PM   #23
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Re: Defined Benefit Plan impact on RE

DW and I each have two DBPs we are vested in. We also have some social security benefits we've earned. We've planned our retirement so that we can do fine without any of them.

But if they are actually available, then I've looked at them under two conditions:

1) we take benefits from all of them as soon as possible. This means I can start collecting my pensions in 4 years at age 55. DW is one year younger and can start collecting the following year. Combined, the pensions could cover about 1/3 of our total spending requirements when they first kick in. That would diminish (no COLA) till I reached age 62 when I could collect social security with DW collecting the following year. With all pensions and ss, we would get almost 50% of our spending requirements from these annuities. That percentage would drop gradually since the pension portion is not COLAed.

2) we wait till all pensions reach full benefit levels and take social security at age 67. Since two of our pensions reach full benefit levels at age 62 and two at age 66, this staggers the ramp-up and DW's first payment of one pension overlaps with my first ss payment. At the end of the total ramp-up period, the annuities would be paying for almost 75% or our total spending.

I've assumed 3.5% annual inflation for all these calculations.

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Re: Defined Benefit Plan impact on RE
Old 01-13-2006, 06:55 AM   #24
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Re: Defined Benefit Plan impact on RE

No DB's here.

25% 401(k)
65% Invested Savings
10% Buried in the back yard under the dog house

In a panamax down by the river.
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