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Old 04-25-2012, 06:34 PM   #21
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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).

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Old 05-04-2012, 11:26 AM   #22
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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 56, retired July 1, 2012; DW is 60 and working for 2 more years. Current portfolio is 2000K split 50 stocks/20 bonds/30 cash. Renting house, no debts.
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