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Update to the previous pension thread
Old 12-08-2013, 07:54 PM   #1
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Update to the previous pension thread

Hi,

I have a weird update and was trying to update that thread but couldn't figure out how. If you have tips please let me know.

What to do with previous pension

So I received my pension paperwork today for my spouse to notarize with a laundry list of instructions to roll it over. OH MY.

BUT, there was an itemized list of withdrawal options that somewhat blew me away and got me thinking and then just confused.

Pension balance is $17,383.55

I have 2 pages of options but these are the 2 that caught my eye:

$76.54 pension withdrawal starting right away (28 years old)

OR, they offer an option to roll my 401k balance into the pension for an annuity like above with 100% spousal benefits for a monthly payment starting immediately of:

$672.48

Total balance if I roll in my 401k would be $152,000. So with a 60 year withdrawal that is a 5.78% rate of return. I have the check for the 401k to send to vanguard to lump sum roll over (Biggest check with my name on it ever!) but the numbers and options are so fascinating to me because I had no clue they were even a possibility. I mean, if we weren't looking at significant income growth over the next few years, $8,100 a year in income would be nice.

I am an annuity novice but I still felt like those figures were somewhat generous. Thoughts?
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Old 12-08-2013, 07:58 PM   #2
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Quote:
Originally Posted by calichica View Post
Hi,

I have a weird update and was trying to update that thread but couldn't figure out how.

What to do with previous pension


You posted the same information on that thread. Isn't that an "update"?
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Old 12-08-2013, 08:01 PM   #3
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Originally Posted by REWahoo View Post


You posted the same information on that thread. Isn't that an "update"?
No, on other boards I follow I can change my original post title to "UPDATE:......" so that people read it. I posted that any only got 4 views because it looks like a stale thread.
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Old 12-08-2013, 08:02 PM   #4
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Quote:
Originally Posted by calichica View Post
No, on other boards I follow I can change my original post title to "UPDATE:......" so that people read it. I posted that any only got 4 views because it looks like a stale thread.
Posts are locked a few hours after posting - no updating other than another post.
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Old 12-08-2013, 11:14 PM   #5
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Quote:
Originally Posted by calichica View Post
Hi,

I have a weird update and was trying to update that thread but couldn't figure out how. If you have tips please let me know.

What to do with previous pension

So I received my pension paperwork today for my spouse to notarize with a laundry list of instructions to roll it over. OH MY.

BUT, there was an itemized list of withdrawal options that somewhat blew me away and got me thinking and then just confused.

Pension balance is $17,383.55

I have 2 pages of options but these are the 2 that caught my eye:

$76.54 pension withdrawal starting right away (28 years old)

OR, they offer an option to roll my 401k balance into the pension for an annuity like above with 100% spousal benefits for a monthly payment starting immediately of:

$672.48

Total balance if I roll in my 401k would be $152,000. So with a 60 year withdrawal that is a 5.78% rate of return. I have the check for the 401k to send to vanguard to lump sum roll over (Biggest check with my name on it ever!) but the numbers and options are so fascinating to me because I had no clue they were even a possibility. I mean, if we weren't looking at significant income growth over the next few years, $8,100 a year in income would be nice.

I am an annuity novice but I still felt like those figures were somewhat generous. Thoughts?
I think you would be really foolish to draw your retirement funds for sixty years starting now, but its your money.
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Old 12-08-2013, 11:29 PM   #6
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Invest your money for the next 30 years. or else, on that kind of money you could afford a single wide in Dolan Springs, Arizona.Dolan Springs AZ - Gateway to Lake Mead of course you would have to have your water delivered Water Delivery in Dolan Springs, Arizona with Reviews & Ratings - YP.com , but it's a poor persons Palm Springs!! Who could ask for more?

PS: My DW has forbid me from ever mentioning Dolan Springs to her again, but I like the place, she doesn't, but it would not be a place for anyone who likes any form of civilization whatsoever. But it is inexpensive.
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Old 12-09-2013, 07:02 AM   #7
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If it were me, I'd rollover the 401k and take the lump sum benefit. You can do far better in 60 years by managing the investments.
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