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Old 11-21-2016, 04:10 PM   #21
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At 5.4% you'll run out of money about age 88.

PV = $177,000
Current age = 54
Age payment start = 65
Monthly benefit = $2,000
Annual rate of return = 5.4%

$177,000 will grow to $315,660 in 11 years at 5.4%.... $177,000*(1+5.4%)^11 = $315,660

$315,660 will support $2,000/month payments for ~23 years.... = nper(5.4%/12,2000,-315660) ~ 276 months = 23 years, + 65 = 88.
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Old 11-21-2016, 04:19 PM   #22
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Wellingtonhas basically the same investments but with the inverse bond/stock allocation.
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Old 11-21-2016, 06:03 PM   #23
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Quote:
Originally Posted by pb4uski View Post
At 5.4% you'll run out of money about age 88.

PV = $177,000
Current age = 54
Age payment start = 65
Monthly benefit = $2,000
Annual rate of return = 5.4%

$177,000 will grow to $315,660 in 11 years at 5.4%.... $177,000*(1+5.4%)^11 = $315,660

$315,660 will support $2,000/month payments for ~23 years.... = nper(5.4%/12,2000,-315660) ~ 276 months = 23 years, + 65 = 88.
Thanks for the extra set of eyes! I had calculated one extra year of growth prior to 65 which definitely makes a big difference. I'll still likely go the lump sum route based on my expected lifespan and the past record of Wellesley. Luckily we'll have two other pensions starting at 65 that will cover most costs before we add in SS. Still want to make sure that I'm making the best choices financially. I appreciate the input.
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