kitty_37
Dryer sheet aficionado
- Joined
- Aug 23, 2005
- Messages
- 44
I am a long-time member but don’t post lately. DH has surprised me with an opinion that is not the same as mine. LOL. So I need to consider it, and perhaps you can help. DH is 64 and about to retire. I am 56 and retired 2 years ago after mother’s serious illness. We are both in good health. Some other financial info then our question.
We have approximately 75% of portfolio in retirement funds(403bs, Roth and TIRAs).
We have another 15% in regular savings, and own outright a positive cash flow rental property in Florida. We have a small mortgage. No other debt. We plan to keep the mortgage into retirement as the monthly payment, while high ( LI,NY-high taxes) is still within what we would pay to move or rent. After mom is gone, we will move off Long Island to a cheaper area. We are about 70/30 stock/bond. . SS, pension, and portfolio withdrawls of 3.5% will each provide about a third of our monthly needs.
Question is regarding how to take DH pension. I am younger and will have no pension. We both will have close to maximum SS when we take it at full retirement age or later.
Pension election choices are the common ones(100, 75, 50 or 0% survivor benefit, 60 or 120 month certain). Each option has corresponding lower monthly payments. I have always felt that we should take a 50% survivor benefit- that would be adequate for me if he predeceases me. (My death has no effect on finances for him) .
He would like to take the 0% benefit as it is the maximum monthly amount for now, and instead, to provide income security for me in the event of his early/unexpected death by using increased life insurance or a variable annuity with a death benefit. SS and portfolio alone is not enough for me to stay in our house. I will have a small inheritance, but don’t count that in my planning.
What do you think about life insurance increase or an annuity with death benefit to replace pension income for me? I am not opposed to doing this and am capable of handling a lump sum as I have always handled our finances. But I feel a little more secure with guaranteed pension, even at a small (200 month) reduced payment for now.
What to do? It’s a one time decision and must elect in the next few weeks.
Thanks, maybe someone can suggest options…or critique our situation.
*edited to remove dollar amounts of portfolio value
We have approximately 75% of portfolio in retirement funds(403bs, Roth and TIRAs).
We have another 15% in regular savings, and own outright a positive cash flow rental property in Florida. We have a small mortgage. No other debt. We plan to keep the mortgage into retirement as the monthly payment, while high ( LI,NY-high taxes) is still within what we would pay to move or rent. After mom is gone, we will move off Long Island to a cheaper area. We are about 70/30 stock/bond. . SS, pension, and portfolio withdrawls of 3.5% will each provide about a third of our monthly needs.
Question is regarding how to take DH pension. I am younger and will have no pension. We both will have close to maximum SS when we take it at full retirement age or later.
Pension election choices are the common ones(100, 75, 50 or 0% survivor benefit, 60 or 120 month certain). Each option has corresponding lower monthly payments. I have always felt that we should take a 50% survivor benefit- that would be adequate for me if he predeceases me. (My death has no effect on finances for him) .
He would like to take the 0% benefit as it is the maximum monthly amount for now, and instead, to provide income security for me in the event of his early/unexpected death by using increased life insurance or a variable annuity with a death benefit. SS and portfolio alone is not enough for me to stay in our house. I will have a small inheritance, but don’t count that in my planning.
What do you think about life insurance increase or an annuity with death benefit to replace pension income for me? I am not opposed to doing this and am capable of handling a lump sum as I have always handled our finances. But I feel a little more secure with guaranteed pension, even at a small (200 month) reduced payment for now.
What to do? It’s a one time decision and must elect in the next few weeks.
Thanks, maybe someone can suggest options…or critique our situation.
*edited to remove dollar amounts of portfolio value
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