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View Poll Results: 100% Contingent Annuity: or cash?
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$244k / lump sum
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7 |
77.78% |
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$1050 monthly / 100% Contingent Annuity
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2 |
22.22% |
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Poll:100% Contingent Annuity or cash ball?
05-25-2013, 07:00 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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Poll:100% Contingent Annuity or cash ball?
1/2 way through my career, my pension plan was cut in less than 1/2.
(Didnt have enough points to keep the orig plan with 15 yrs with the co.)
What I am left with today is a 244k cash ballance or $1050 per month in a 100% Contingent Annuity:
at 55 it will be $335k or $1440 / mo.
at 51 today @444 or $1050 / mo
Thoughts on which way to go? Cash or Annuity? And why?
(I know this might be a  here, but wanted to throw it out one more time)
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05-25-2013, 07:15 AM
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#2
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Full time employment: Posting here.
Join Date: Jul 2011
Location: South Florida
Posts: 551
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FWIW, I looked up on Immediate Annuities, age 55, Male, $335,000 and it did come up with $1486.00 per month. It just seems to me that at age 55, with interest rates being so low right now, that to lock up this number 'forever,' might not be the best option. Can you take the cash and if you are interested in annuities, purchase them as ladders, or even buy a CD for a # of years until rates are better?? That is, if you want to buy annuities in your 50's or early 60's ??
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05-25-2013, 07:18 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,376
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How do these compare with SPIA results? See immediateannuities.com
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-25-2013, 07:23 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,736
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How long until you're 55?
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
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05-25-2013, 08:05 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 4,629
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I don't get the $335k at age 55. Are you saying there is a second lump sum opportunity?
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05-25-2013, 08:12 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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Am 51 now. Lump will go from 244k to 335k in the next 3 1/2 yrs.
51= $1050 55= $1440
Am asking as I might be taking it in the next 6-12 months.
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05-25-2013, 08:16 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
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How stable is the pension source? I might be inclined to take the 335k.
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05-25-2013, 08:28 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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Its solid.
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05-25-2013, 08:32 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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 Quote:
Originally Posted by pb4uski
How do these compare with SPIA results? See immediateannuities.com
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The same thing there shows $894 / month.
So, $1050 isnt too bad.
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05-25-2013, 12:38 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,736
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Quote:
Originally Posted by almost there
Am 51 now. Lump will go from 244k to 335k in the next 3 1/2 yrs.
51= $1050 55= $1440
Am asking as I might be taking it in the next 6-12 months.
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Plus, $244k to $335k or, $1050 to $1440 in 3.5 yrs is a 9.5% annual return; not too shabby.
So, I think we need more choices in your poll. I'd vote to wait until 55.
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
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05-25-2013, 03:20 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 4,629
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I'm with Huston, I'd wait till 55 (assuming the $335k is guaranteed).
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05-25-2013, 03:51 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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Quote:
Originally Posted by Huston55
Plus, $244k to $335k or, $1050 to $1440 in 3.5 yrs is a 9.5% annual return; not too shabby.
So, I think we need more choices in your poll. I'd vote to wait until 55.
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I might not have a choice.....
Also, I am thinking about jumping on the next early out offer.
Last time it was 100k to go.
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05-25-2013, 06:50 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,376
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Quote:
Originally Posted by Huston55
Plus, $244k to $335k or, $1050 to $1440 in 3.5 yrs is a 9.5% annual return; not too shabby.
So, I think we need more choices in your poll. I'd vote to wait until 55.
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+1 especially since the 9.5% is "solid" - almost like being able to buy a 9.5% bond today.
OP, if you left the company but did not left the pension with the company (didn't take lump sum or start pension payments) would the $244 still grow to $335 in 3.5 years?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-26-2013, 01:21 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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No, you cant keep it when you go. Its game over.
Lump sum or annuity. It really starts to move once you hit 50.
The thing went from a nice linear curve to an insane bell curve 15 yrs ago.
A person 65 yrs old with 15 yrs will have 2-3 times as much as a person 35 with the same 15 yrs.
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05-26-2013, 08:02 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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Quote:
Originally Posted by almost there
I might not have a choice.....
Also, I am thinking about jumping on the next early out offer.
Last time it was 100k to go.
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But is that 100k pre-tax and treated as income? If they do give you a lump-sum paycheck for $100k, it'll get hit with Medicare, SS, and full income tax rates...while your pension would (presumably) be able to be rolled over into an IRA, and you can slowly pull money out to fill out your 10%/15%/25% tax brackets, and without SS/Medicare deductions.
However, if you turn down an early-out offer, can you reasonably expect to still quality for the pension at 55, or are you struggling with rolling the dice and hoping you'll still be there at 55 to have the higher pension, but if they laid you off at 54, your pension would be a lower amount?
__________________
Dryer sheets Schmyer sheets
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05-29-2013, 08:43 AM
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#16
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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Is there an early retirement subsidy that's kicking in at 55? Do you have to be employed at 55 to get it?
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