Retiring very soon.
I have within my Company's weird pension plan two options after retirement.Withdrawals can be made from either:
A fixed return option currently paying 4.8% (has historically been around this percenatge). or
An option which guarantees a payment of the greater of 5% of the fund value determined on an annual date or 5% of the amount on the date I elect this option. Even if the fund value drops to zero I would still receive 5% of the initial amount, An "insurance premium" of .5% applies for this guarantee.
I intend to withdraw at either the 4.8% or 5% each month to pay my 4.5% mortgage for the next 30 years . (Due to taxes paying off the mortgage is not an option.
A third option would be to take the value in cash and put it into a conservative balanced mutual fund (Vanguard Wellesley).
Please share your thoughts.
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