Lump sum arrived....lets do an experiment
So my lump sum payout from a small DB pension just arrived. I did lots of maths and decided that I have enough pension and SS type income already and that I might as well take the lump sum from this comparatively small pension.
I'm 53 and the benefit would have been a single life $471/month at age 65. I received a lump sum of $35k and just put it all into a new fund, Vanguard Balanced Admiral Index. I'll leave it alone, reinvest dividends and report back in 12 years and see if it was worth it.......
If I can average 5% return it will work out to the same as the pension.
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent