RetireAge50
Thinks s/he gets paid by the post
- Joined
- Aug 6, 2013
- Messages
- 1,660
If you were age 65, had a $1,500,000 portfolio and $60,000 estimated expenses how much would you convert to this pension?
1. NO LIMIT on buy in amount (send a check or convert from other retirement accounts).
2. Buy in and payments start immediately
3. First year pays 7.9% Single Life or 6.7% 100% Joint Life (of amount purchased)
4. Every year COLA (maximum 3%)
5. Purchase amount (less benefits received) refunded to beneficiaries
6. Assuming default risk is near zero (state issued pension)
Tempting to put a lot maybe all. $1,500,000 times 6.7% would be an income of $100,500. A typical 4% SWR would only be an income of $60,000.
1. NO LIMIT on buy in amount (send a check or convert from other retirement accounts).
2. Buy in and payments start immediately
3. First year pays 7.9% Single Life or 6.7% 100% Joint Life (of amount purchased)
4. Every year COLA (maximum 3%)
5. Purchase amount (less benefits received) refunded to beneficiaries
6. Assuming default risk is near zero (state issued pension)
Tempting to put a lot maybe all. $1,500,000 times 6.7% would be an income of $100,500. A typical 4% SWR would only be an income of $60,000.