Looking for dialog on timing for starting my non-cola defined pension. The funds come from my nearly 19 yrs of service(tude) at mega corp--long long ago.
Starting Jan 1, 2009, payments are: $1160/mon
2010:1226/mon
2011: 1406/mon
On a simple payment basis, no reinvestment, there is about a 7 year breakeven of taking it now versus at 65.
I do not really think we will need the cash flow but on the other hand, the turmoil in the markets and the fact there is no cola, suggest having the income in hand as a preferred path. However it grates me then we will making tax payments at our margin rates which I expect will be in the 25% bracket for at least 2009
Thoughts, trade-offs, etc.
Thanks
Nwsteve
Starting Jan 1, 2009, payments are: $1160/mon
2010:1226/mon
2011: 1406/mon
On a simple payment basis, no reinvestment, there is about a 7 year breakeven of taking it now versus at 65.
I do not really think we will need the cash flow but on the other hand, the turmoil in the markets and the fact there is no cola, suggest having the income in hand as a preferred path. However it grates me then we will making tax payments at our margin rates which I expect will be in the 25% bracket for at least 2009
Thoughts, trade-offs, etc.
Thanks
Nwsteve