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02-23-2017, 06:22 PM
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#1
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 979
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Investing With Pension?
I don't have a frame of reference with the circle I keep. I haven't found any articles touching on the subject either.
Is anyone concerned enough about the potential evaporation of their pension someday that they invest all or a portion of it into their AA to build a potentially more reliable income? Trying in the meantime to live solely on investment withdraws, or rental income?
Or is that maybe too high a level of paranoia?
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02-23-2017, 07:33 PM
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#2
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
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For me that is not an option, there is no lump sum or partial sum option available. Last I read it is 92% funded so I'm not all that concerned about it.
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When I was a kid I wanted to be older. This is not what I expected.
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02-23-2017, 07:39 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 3,163
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My question is with a solid pension, why am I invested 55/45? That pension performs like a great bond portfolio. Why not bump the stock up to compensate? Answer: I'm chicken!
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02-23-2017, 07:47 PM
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#4
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 979
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For a long while I've been investing most of what I get each month, figuring it won't last. Then I realized here this month is coming up on the tenth anniversary and I'm still getting what I'm getting. It's an eye opener to maybe open the purse strings a little more and up that quality of life marker.
__________________
I'm free and I like it!
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02-23-2017, 07:56 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Dutchess County
Posts: 1,599
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02-23-2017, 08:59 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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I have a solid pension and rental income and I'm at 65/35 after the recent run up. I've decided to stop rebalancing in retirement and hopefully go on a negative flight path as I get older.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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02-24-2017, 04:44 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2016
Location: Acworth
Posts: 1,214
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Mine comes from the federal government, so if it goes away then I expect I'll have bigger things to worry about...
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02-24-2017, 12:41 PM
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#8
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 799
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Quote:
Originally Posted by exnavynuke
Mine comes from the federal government, so if it goes away then I expect I'll have bigger things to worry about...
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State pension here that's protected by the state's constitution, highly unlikely to go away. So I have no plans to try to recreate it with investments. With low bond rates, I can't bring myself to invest in bond funds, so I went with dividend index funds.
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02-24-2017, 12:59 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,304
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If you're putting pension proceeds into investments and taking withdrawals to live on, what's the difference? If the pension evaporates you would have more investments since you would've taken smaller withdrawals.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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02-24-2017, 04:16 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Mar 2008
Location: Jalisco, Mexico
Posts: 1,738
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we're planning on a modified version of that. For the first 2 years we will invest 1/3 of pension income. As SS and the 2nd pension and 2nd SS come on board, we will expand the budget but still invest most of our income. The main reason is to just actually *have* a nest egg. Secondary reason is a general worry about SS. We're not too concerned about the pension itself. Created by state legislature, massive, solid investments, conservative.
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02-24-2017, 04:45 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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My pension is 85% funded but it is a bogus figure. They assume 26% employer/employee contribution rate while it is actually 29%. They also assume 89 year life expectancy when it is currently 82. No social security, just the pension which I live off of. My investments would not come close to lasting a lifetime but I never spend it and just add to it monthly. That being said, I invest conservatively and currently own no common stocks.
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02-26-2017, 08:29 PM
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#12
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 979
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Quote:
Originally Posted by exnavynuke
Mine comes from the federal government, so if it goes away then I expect I'll have bigger things to worry about...
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I guess I worry about some kind of snafu from the VA. Some NUB auditing my disability checklist and maybe not exactly having the best training and FUBARing it all up. Not entirely unheard of.
I think this thread has helped me with realizing there's not a big chance of doom and gloom heading my way. It's a good feeling. It's allowing me to breathe a little easier, enjoy something better in life than pinching every penny and stressing about what can be afforded.
This comes at a good time. An example: I'm getting a new knee soon. If I keep my current car, it's going to hurt like a b***h getting in and out of my Civic. If I relax some I can afford the payments on a new SUV. If I kept the current trend, I'd have just forced myself to live with current car and suffered physically while I was going through rehab and the new limitations with an artificial body part.
__________________
I'm free and I like it!
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