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Small Pension Avail - Which would you take??
Old 05-19-2006, 03:13 PM   #1
 
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Small Pension Avail - Which would you take??

I have a very small pension (Non-Cola) available to me this year. And have just received the 'numbers' on this deal. By small I mean it may pay to Upgrade from Yellowtail To Pillar Box Red

What would you opt for?

1.) Choice 1 - $103.05 a month starting at age 55 for Life.

2.) Choice 2 - $205.14 a month starting at age 65 for Life.

3.) Choice 3 - $99.52 a month starting at age 55 for life plus a lump sum of $652.87

4.) Choice 4 - $197.92 a month starting at age 65 for life plus a lump sum of $1069.78

I've run some number briefly and it looks like you've have to hit about Age 92 or so to make out delaying. My inclination is to take Option 1 and Park it in Cash.

There are always some interesting opinions here and I'd like to hear what you would do?
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 03:46 PM   #2
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Re: Smaill Pension Avail - Which would you take??

I say choice 1 and throw it in the wine bucket every month
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 03:51 PM   #3
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Re: Smaill Pension Avail - Which would you take??

#1 and blow it on something fun.
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 03:56 PM   #4
 
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Re: Smaill Pension Avail - Which would you take??

Quote:
Originally Posted by DOG51
#1 and blow it on something fun.
You mean like - Blow Me! :P

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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 04:10 PM   #5
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Re: Smaill Pension Avail - Which would you take??

Quote:
Originally Posted by Cut-Throat
You mean like - Blow Me! :P

Well if you have a decent cat house in the area, that is an option.*
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 04:25 PM   #6
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Re: Smaill Pension Avail - Which would you take??

This proves the Frontline show was wrong. Some people do make out like bandits with their pensions.
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 05:26 PM   #7
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Re: Smaill Pension Avail - Which would you take??

I'm anxious to see what kind of feedback you get on this. I have a similar situation. I finally tracked down a small pension (held in an annuity at Pacific Life it turns out) from early in my career.
I'll probably start a separate post rather than hijack this one.

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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 06:05 PM   #8
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Re: Smaill Pension Avail - Which would you take??

Gee, maybe you should go for Option 5...$1.38 with right of survivorship
Just kidding, C-T...my husband has almost the same deal. The only number i can remember offhand is $237/month at age 65 with no survivorship. Years ago I figured it would pay for both of our Medicare premiums, but now I think we'll be lucky if it pays for his alone. I should expand my thinking as you have--alas, I have not the spreadsheet skills.
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 06:06 PM   #9
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Re: Smaill Pension Avail - Which would you take??

Just received a check for $61.50 from way back when. *I will receive this monthly for my lifetime, then half to the wife for hers. *I had called the benefits center because I have received an annual statement for* many years *and asked what type of lump sum was offered and there was none. *Could have taken a 10, 15, 20 or lifetime payout. *Every little bit helps.

Edit: Took it now cause I figure I might not be around to enjoy this fortune when I am 65.
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 07:12 PM   #10
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Re: Smaill Pension Avail - Which would you take??

My dh had about the same option only no payouts. He took the $110 at 50 instead of the $220 at 65, direct deposit into the bank and we figure we're way ahead of the game.

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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 07:21 PM   #11
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Re: Smaill Pension Avail - Which would you take??

Choice 3 - by all means - you'll be down a mere $3.53 a month but ahead the $652.87 which will get you a carload of $10 Yellowtail...

JohnP
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Re: Smaill Pension Avail - Which would you take??
Old 05-19-2006, 07:32 PM   #12
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Re: Smaill Pension Avail - Which would you take??

Choice 3 of course. You'll be well ahead if you invest this lump sum.
(If you think you might be spending it instead go to Choice 1 though)
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Re: Small Pension Avail - Which would you take??
Old 05-19-2006, 09:13 PM   #13
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Re: Small Pension Avail - Which would you take??

The answer is absolutely obvious. You're already FI. Choose option one and give this windfall to charity. You'll still live in a prestige home, have lots of toys and travel extensively. Your gift to folks less fortunate than yourself will help them immeasurably beyond the benefit you'd gain from a few extra bottles of expensive wine, etc.
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