SpinDr
Recycles dryer sheets
So, got a lump sum offer for a future pension from my former MegaCorp. I'm currently working and planning to retire within the next two years. Current age 54 and married.
Here's my situation as I need to get a sanity check on the offer. I can receive a lump sum of $177,000 now or can start a $2,000 per month pension at 65. Looking at it just from being able to buy a future annuity, the $2,000 at 65 makes the most sense. But, if I dropped the $177,000 straight into Wellesley and assumed a 6% return, I could start pulling $2,000 per month at age 65 through at least 94. Frankly I would not really need the money until 65 and at that time other pensions, plus social security, cover 80+ percent of my anticipated expenses at that time.
Based on past returns it seems like 6% is not out of the realm with Wellesley. I know it would be making some assumptions on returns but what do others think? Thanks for any insights.
Here's my situation as I need to get a sanity check on the offer. I can receive a lump sum of $177,000 now or can start a $2,000 per month pension at 65. Looking at it just from being able to buy a future annuity, the $2,000 at 65 makes the most sense. But, if I dropped the $177,000 straight into Wellesley and assumed a 6% return, I could start pulling $2,000 per month at age 65 through at least 94. Frankly I would not really need the money until 65 and at that time other pensions, plus social security, cover 80+ percent of my anticipated expenses at that time.
Based on past returns it seems like 6% is not out of the realm with Wellesley. I know it would be making some assumptions on returns but what do others think? Thanks for any insights.