Steelart99
Recycles dryer sheets
- Joined
- Apr 24, 2012
- Messages
- 184
I've read the various topics about taking a Pension Lump Sum Distribution or not and I'm having a hard time finding an "easy" way to decide which way to go on this.
First off, we're not talking much on this particular pension. The facts, I'm 55 (Dec birthday) and the pension can start next month or anytime up to about 1/1/2024 (non-COLA). If I start the pension next month it is worth about $520/mo for life up to about $840/mo if I wait until 2024. The buyout is a lump sum of about $85K. I plan to work one more year ... hopefully no more than that at which time the pension would be $553/mo. At that time I'll be 57.
I tend to assume 3.5% inflation and 5% growth on any investment should I take the lump sum and put it into an investment or into my IRA. If I do the IRA, I can't touch it until I'm 59-1/2.
Any thoughts on how to put this mess into perspective?
First off, we're not talking much on this particular pension. The facts, I'm 55 (Dec birthday) and the pension can start next month or anytime up to about 1/1/2024 (non-COLA). If I start the pension next month it is worth about $520/mo for life up to about $840/mo if I wait until 2024. The buyout is a lump sum of about $85K. I plan to work one more year ... hopefully no more than that at which time the pension would be $553/mo. At that time I'll be 57.
I tend to assume 3.5% inflation and 5% growth on any investment should I take the lump sum and put it into an investment or into my IRA. If I do the IRA, I can't touch it until I'm 59-1/2.
Any thoughts on how to put this mess into perspective?