martyb
Thinks s/he gets paid by the post
In 6 yrs at age 55, I'll begin receiving a cola'd pension that will start at ~$36000 per year. At age 60, I'll start drawing another cola'd pension of~$14000 per year. Both are before-tax amounts and deductions will be made from the larger pension for health insurance (current rate is about $300/month). Both pensions will be hit for fed taxes, no state tax, but both will also have survivor benefit deductions witheld. How do I figure the value of the pensions as if they were in a regular portfolio? When I use a retirement calculator, it always asks about my portfolio amount, and I'm not sure how to answer. Do I take the $36000, calculate what amount that would be a 4% swr of ($900,000) and that's the answer? Is my $36000 pension the same as having $900,000 in an account? I'm a newbie at this FIRE stuff, but really want to learn everything I can to have a successful ER.