Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 04-25-2012, 06:34 PM   #21
Thinks s/he gets paid by the post
zinger1457's Avatar
Join Date: Jul 2007
Posts: 1,082
Your pension is probably going to look real good compared to any SPIA being offered today. A SPIA is directly tied to interest rates which are at historically low levels, your pension isn't (except for any future COLA's).

zinger1457 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 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 05-04-2012, 11:26 AM   #22
Thinks s/he gets paid by the post
Join Date: Jun 2010
Location: France
Posts: 1,169
Originally Posted by BigNick View Post
They quoted me $158/mo per $100,000 invested, with 3% COLA.

I also found this site which quoted $376/mo per $100,000 invested, with 3% COLA.
A quick update... I was at my bank today, arranging to move some stuff around in my various retirement accounts. (Basically, I'm moving the guaranteed accumulation investments to a couple of accounts which have taken capital losses up to now, so they essentially function as tax-free CDs.) The investment guy at the bank likes me because I speak his language, unlike most of his customers who say "I don't know anything; you pick something for me" and then shout at him when the market goes the wrong way, as if the fee the pay entitles them to psychic powers.

Anyway, I mentioned my model of overall wealth including a lump-sum pseudo-value for my pension, and he liked it. So he pulled up the bank's annuity plan and showed me a return of $187/mo per $100,000 invested, with 3% COLA. That's quite close to the first figure quoted above. Taking the average of the two lower monthly figures, my 2800/month with full COLA is the equivalent of 1.6 million. (For what it's worth, the last two figures are in Euros, which at $1.31 makes $3670/month and $2.1 million. Put that way, it's a huge amount of money!)

Age 55, retired July 1, 2012; DW is 59 and working for 4 more years. Current portfolio is 1950K split 50 stocks/20 bonds/30 cash. Renting house, no debts.
BigNick is offline   Reply With Quote

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


All times are GMT -6. The time now is 07:39 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.