rocks911
Recycles dryer sheets
I just turned 52 and my wife is 49 and we are both looking forward to the day when we can retire. I have lurked at this site and surfed the comments from time to time and thought I'd ask the community a couple questions.
I have various options for an annuity at the time that I retire and one of my big questions is can anybody shed light on the pros and cons of each, or maybe because its such a personal decision has somebody made a similar decision that did or did not work out well.
The choices I have are:
Retiree life payments only-
100% survivor-
75% survivor-
50% survivor-
5 yr guaranteed-
10 yr guaranteed-
15 year guaranteed-
And a choice to take a lump sum.
My thoughts are that I would want to take the lump sum and combine that with 457 money I have and put it in a mutual fund to draw on (USAA mutual fund maybe) and maybe take the 75% option.
With that choice in mind in 5 years I would have a monthly annuity of $4883 and with my 457 and the lump combined about $400,000.
My expenses are a house payment (P&I/tax/insurance) of $1900 and I figure a car payment from now on of about $400 a month, and thats it, besides metered services and health insurance, whatever that will be by then.
I have tried the FIRECalc and I have had an awfully hard time plugging in some of the numbers. In the end when I'm ready to go, I'll go, and if I have to adjust my standard of living I will.
Any thoughts or glaring pitfalls?
I have various options for an annuity at the time that I retire and one of my big questions is can anybody shed light on the pros and cons of each, or maybe because its such a personal decision has somebody made a similar decision that did or did not work out well.
The choices I have are:
Retiree life payments only-
100% survivor-
75% survivor-
50% survivor-
5 yr guaranteed-
10 yr guaranteed-
15 year guaranteed-
And a choice to take a lump sum.
My thoughts are that I would want to take the lump sum and combine that with 457 money I have and put it in a mutual fund to draw on (USAA mutual fund maybe) and maybe take the 75% option.
With that choice in mind in 5 years I would have a monthly annuity of $4883 and with my 457 and the lump combined about $400,000.
My expenses are a house payment (P&I/tax/insurance) of $1900 and I figure a car payment from now on of about $400 a month, and thats it, besides metered services and health insurance, whatever that will be by then.
I have tried the FIRECalc and I have had an awfully hard time plugging in some of the numbers. In the end when I'm ready to go, I'll go, and if I have to adjust my standard of living I will.
Any thoughts or glaring pitfalls?