The answer to this question means nothing when pensions are not taken into account.
Not everyone is fortunate enough to have a pension. Especially self employ people
The answer to this question means nothing when pensions are not taken into account.
Not everyone is fortunate enough to have a pension. Especially self employ people
I believe that is what Meadbh meant.... someone with a COLA pension of $60k with health insurance and $300k in an IRA is probably better off than someone with $1.5 million in the bank.
I think you may be right. You made a good (if risky) decision to go into law enforcement, just as I did in the military. Fortunately, we both avoided early death and were able to receive the promised retirement packages. But we're a tiny minority.
One thing is for sure: Fifty years from now things will be very different.
In order to live with the younger generations, you need to have offsprings.I agree. The era of pensions will be a blip in history and it will go back to the way it was - multiple generations living in the same house or sharing with roommates.
When I was a kid, my elderly neighbor did this. He essentially gave a family his home as long as they cared for him until he died, which they did. They all lived together, then sold the house after he died.In order to live with the younger generations, you need to have offsprings.
Well, I guess a geezer can get adopted by a family. Else, roommates it is.
less than or equal to $100k
less than or equal to $250k
less than or equal to $1/2 million
less than or equal to $600k
less than or equal to $750k
less than or equal to $800k
less than or equal to $1 million
less than or equal to $1.5 million
less than or equal to $2 million
more than $2million
enuff
When I was a kid, my elderly neighbor did this. He essentially gave a family his home as long as they cared for him until he died, which they did. They all lived together, then sold the house after he died.
In so many way, a guarantee nice pension is better than a large net worth.
Did they have to care for him very long?
Net worth is such an overused term. Should be investible assets plus some factor equated to you pension. Housing should be excluded unless you tapped it as a source of income. Instead of net worth it always comes back to income needed to cover said expenses and the various means to derive that income.
I was making a facetious comment about the family having a conflict of interest with the man's longevity.As I recall, it was about 10 years.
Before I ERed, I had about 2/3 of my $840k portfolio in pretax accounts and 1/3 in after-tax accounts, I had to reverse that ratio so I'd have enough to live on for 15 years until the reinforcements arrive. Half of that pretax portfolio (or 1/3 of the overall portfolio) was in company stock which I was able to liquidate relatively cheaply by using the NUA option to reduce the tax bite. Thanks to the crashing markets in late 2008, I was able to buy 25% more shares of a big bond fund at bargain-basement prices which has helped my monthly dividend income.
Despite pulling nearly $25k from the portfolio every year, it has still grown from $840k in late 2008 to $1.4M today.
I am just more than half way to getting to age ~60 intact since I ERed so things are looking good!
Let's remember that a guaranteed $60K COLA'd pension is equivalent to $1.5 million portfolio.
... in terms of cash flow. When you and your spouse die, the pension stops, but the portfolio lives on for your heirs.
Yeah, I'd probably take that $55k per year police pension plus health/dental, few hundred thousand in the bank, and a paid off home. That would allow us to spend about $10-15k more than right now.
As a self-employed person, I have no concept of how awesome it must feel to have an approximately $60K per year COLA pension and health care paid for in retirement.