papadad111
Thinks s/he gets paid by the post
- Joined
- Oct 4, 2007
- Messages
- 1,135
Are you missing something in that if you stick with 401k and the company pension, you get the (small) pension and still have all your 401k savings. If you convert to annuity you have much less 401k and a non-COLA'd annuity.
Make sure you are comparing the pension plus full 401k potential income vs the annuity plus reduced 401k potential income.
I also agree that inflation is probably more likely than a huge market fall. Once you buy the annuity, you lock in the amount and no chance for increases.
Thanks Chevy. Yes. It would reduce the 401k. But I have assets outside the 401k -taxable account and paid for house so I would be eliminating the 401k and converting it to a monthly cash flow, available at age 45 to allow about 30-40 percent of monthly expenses to be covered today.
I am concerned about inflation. That's where the house and taxable accounts come into play.
I am equally concerned about a protracted decade of slow or no equity gains too. Hence the annuity thinking ....