Ed B
Recycles dryer sheets
My plan, including debt-burndown and ER revenue choices, have been built around at least a 50% survivor benefit for DW after I move on to the next plain. A level income option is available with no survivor benefit, and while I have looked at it for familiarity, I decided to push out ER until the pension with survivor benefit reaches my target.
Well I may have to reconsider, and if I have to accelerate the ER timeline, level income + GUL, only for its death benefit, are on the table.
I have enough health issues that I will be unable to get Term Life to meet this strategy, but Megacorp offers portable GUL that keeps the same premium whether we are active or retired. Currently I have ~$550k at $2150 per year at age 57. I can increase to about $700k for a higher premium without POI, and I get one chance to reduce it at ER at a proportionately lower premium. I do not participate in the cash accumulation part of the policy.....death benefit only.
The compelling thing near term is a level income pension to either 62 or 65 will provide about $76000 per year with my target revenue at $80000. So my port WR will be very low. But counting on a GUL death benefit + my SoSec + our remaining modest nest egg for her revenue gives me pause.
I know GUL as part of a late retirement funding strategy is not popular here, but numbers seem to say it will work. My wife is not worried about, but with these kinds of decisions I worry about it for her.
Does anyone here have experienced perhaps thru parents or friends who had to or chose to go this route? How did it work when the primary breadwinner passed? Most of our RE revenue will be covered by non-cola pension and SoSec. Our modest portfolio will be for keeping up with inflation and discretionary stuff if we go the level income route. If I go with a lower pension with survivor benefit then the portfolio will have to bridge us to SoSec age.
Sorry for the wall of text. I will reply with what is accelerating the decision.
Also, sorry for the typos. Posting lengthy queries from my phone is always challenging.
Well I may have to reconsider, and if I have to accelerate the ER timeline, level income + GUL, only for its death benefit, are on the table.
I have enough health issues that I will be unable to get Term Life to meet this strategy, but Megacorp offers portable GUL that keeps the same premium whether we are active or retired. Currently I have ~$550k at $2150 per year at age 57. I can increase to about $700k for a higher premium without POI, and I get one chance to reduce it at ER at a proportionately lower premium. I do not participate in the cash accumulation part of the policy.....death benefit only.
The compelling thing near term is a level income pension to either 62 or 65 will provide about $76000 per year with my target revenue at $80000. So my port WR will be very low. But counting on a GUL death benefit + my SoSec + our remaining modest nest egg for her revenue gives me pause.
I know GUL as part of a late retirement funding strategy is not popular here, but numbers seem to say it will work. My wife is not worried about, but with these kinds of decisions I worry about it for her.
Does anyone here have experienced perhaps thru parents or friends who had to or chose to go this route? How did it work when the primary breadwinner passed? Most of our RE revenue will be covered by non-cola pension and SoSec. Our modest portfolio will be for keeping up with inflation and discretionary stuff if we go the level income route. If I go with a lower pension with survivor benefit then the portfolio will have to bridge us to SoSec age.
Sorry for the wall of text. I will reply with what is accelerating the decision.
Also, sorry for the typos. Posting lengthy queries from my phone is always challenging.
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