nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
At the beginning of 2015 (at age 54) I took a lump sum payment from a pension. The amount was $35k. The pension would have paid $5.6k per year starting at age 65.
I decided to do a long term experiment to see if taking the lump sum ended up as the best choice. So I deposited the money in Vanguard Balanced Fund (60/40 AA) VBINX, and sat back. I worked out that an average of 6% gain each year would support the same income as the pension to age 83.
After the first year the lump sum choice is lagging a bit.
Jan 2015 - $35k
Jan 2016 - $34k
so about a 3% loss.....Let's see what 2016 has in store.
I decided to do a long term experiment to see if taking the lump sum ended up as the best choice. So I deposited the money in Vanguard Balanced Fund (60/40 AA) VBINX, and sat back. I worked out that an average of 6% gain each year would support the same income as the pension to age 83.
After the first year the lump sum choice is lagging a bit.
Jan 2015 - $35k
Jan 2016 - $34k
so about a 3% loss.....Let's see what 2016 has in store.