Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-01-2015, 12:05 PM   #41
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 511
It'll have to be a pretty generous lump sum for me to bite. The majority of my assets are already in tax deferred accounts and I like the diversification of having an annuity component in my income stream - albeit a minor one as my pension from Megacorp is about 20% of my NW (if I use the value of an equivalent annuity from immediateannuities.com).

Now if, miraculously, Megacorp offers a buyout price that's significantly greater than the value I've calculated then I'd have to consider it, but I'm not holding my breath.
__________________

__________________
stepford is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-01-2015, 02:03 PM   #42
Recycles dryer sheets
 
Join Date: Dec 2009
Posts: 348
Quote:
Originally Posted by stepford View Post
It'll have to be a pretty generous lump sum for me to bite. The majority of my assets are already in tax deferred accounts and I like the diversification of having an annuity component in my income stream - albeit a minor one as my pension from Megacorp is about 20% of my NW (if I use the value of an equivalent annuity from immediateannuities.com).

Now if, miraculously, Megacorp offers a buyout price that's significantly greater than the value I've calculated then I'd have to consider it, but I'm not holding my breath.
FWIW the lump sum offer from my former Megacorp (same employer as OP) was a 30% haircut over what a comparable immediate annuity would cost. Generous they were not
__________________

__________________
zedd is offline   Reply With Quote
Old 09-03-2015, 09:49 AM   #43
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by stepford View Post
It'll have to be a pretty generous lump sum for me to bite. The majority of my assets are already in tax deferred accounts and I like the diversification of having an annuity component in my income stream - albeit a minor one as my pension from Megacorp is about 20% of my NW (if I use the value of an equivalent annuity from immediateannuities.com).

Now if, miraculously, Megacorp offers a buyout price that's significantly greater than the value I've calculated then I'd have to consider it, but I'm not holding my breath.
My number is about 35% of NW but yea I've done the math too with immediate annuity methodology. Great way to look at it. "How much would I need to put into a lifetime annuity to get the same income stream as my pension will provide..."

There is a story in Money about Megacorps doing this and it said 58% typically take the lump sum. That surprised me it was that high.
__________________

__________________
supernova72 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Possible Megacorp Retiree Health Care Changes Brett_Cameron FIRE and Money 21 04-12-2013 03:31 PM
MegaCorp retiree, age 50 Bona Fide Retiree Hi, I am... 7 11-26-2010 03:09 AM
Changing j*b, medical 125 problem ProspectiveBum FIRE and Money 5 03-30-2010 07:41 PM
Company e-mail: Megacorp health plans changing ziggy29 Health and Early Retirement 12 10-31-2007 04:54 PM

 

 
All times are GMT -6. The time now is 02:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.