almost there
Thinks s/he gets paid by the post
- Joined
- Sep 24, 2008
- Messages
- 1,012
I retired a couple yrs. ago at 51. My killer pension in 1984 turned into a Pension / Cash Balance Account and was severely nurtured 1/2 way through my career. I kept it in place when I left mega crop as it has a 5% return. It has a cash balance of 273k today or the option of a 100% Contingent Annuity: of a flat $1250 per month. I was planning on letting it grow as I do not need the funds now but have been trying to figure out if there was an advantage to taking the annuity now and just banking it? I cant safely match the return but could bank 15k per year until I need the $1250 per month.
My thought is I could receive the annuity for a long time based on historical family longevity as well as a tax advantage spreading out a smaller amount long term. It would also possibly allow some of the funds to be available as inheritance if it was taken early and rat holed. I hope I described this in a way that can be understood. Not an easy thing for me to describe.
I was planning to taking the lump sum all through the years, but now feel the annuity has the advantage. So I plan to go that route. Am just trying to come up with a strategy on when to start taking it.
My thought is I could receive the annuity for a long time based on historical family longevity as well as a tax advantage spreading out a smaller amount long term. It would also possibly allow some of the funds to be available as inheritance if it was taken early and rat holed. I hope I described this in a way that can be understood. Not an easy thing for me to describe.
I was planning to taking the lump sum all through the years, but now feel the annuity has the advantage. So I plan to go that route. Am just trying to come up with a strategy on when to start taking it.
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