Originally Posted by cashbalancetrouble
I have a question on retirement timing. I ER three years ago but DW continued to work. I did not take my pension yet as it continues to grow at 6% per year. Is now the time to take it and put it into equities?
FA has thought this would be good as he always wants more investments. 0.95% fee. DW can get another lump sum pension in two years. We are looking ahead at 10 years with no income before SS to start depleting all the pretax accounts converting to Roths starting in 2010. I expect market will not recover until 2011 and this tells me to stick with the 6 % per year until 2010.
I noticed nobody responded to your question. I think it's a good one. I'm going to assume your pre-tax investments will cover you until you reach 59.5, so you won't be needing this pension money in the next 5-10 years.
I tend to agree (partially) with your FA. I think this would be a very good time to take your pension lump sum out. However, I would invest into something like Vanguard, bypassing the .95% FA fee. And since you think the market won't recover until 2011 (reasons?) you could stick your non-invested moneys in some cash investment to help make up for the lost 6%, DCAing with them over the next 2 years.
You seem to be in a brilliant position here to make your retirement money really count. And since you have the other lump sum available in a few more years, you've got a fallback in case things are worse than anticipated. Good luck.