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01-27-2011, 08:11 PM
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#21
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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Quote:
Originally Posted by golfnut
After alot of going back and forth, we've decided to go with the annual payout of approx. $8,400. Not an easy decision.
Thanks for the responses. I still have about 2 weeks to change my mind, tho.
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Well, I ended up changing my mind and took the lump sum and rolled into to a TIRA (psst - Wellesley).
Thanks to all who provided feedback.
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01-27-2011, 08:52 PM
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#22
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Administrator
Join Date: Apr 2006
Posts: 23,038
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Golfnut and Dimsumkid:
One or both of you need to check how you are quoting earlier posts. They were seriously screwed up here, but I think I have fixed them all. Please let me know by pm if you have questions.
Gumby
__________________
Living an analog life in the Digital Age.
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01-28-2011, 07:40 PM
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#23
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Recycles dryer sheets
Join Date: Sep 2010
Posts: 95
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Quote:
Originally Posted by golfnut
Well, I ended up changing my mind and took the lump sum and rolled into to a TIRA (psst - Wellesley).
Thanks to all who provided feedback.
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I think you did the right thing. If you can hold off using the money for a few years it will grow and then at the older age you can always turn it into an annuity and the amount will be considerably better! If you took the payouts I am assuming you have no choice of when to start them and you would get taxed on them as well. With the lump sum you can put it in a tax deferred area and pull it out later! That was the kicker for me as well as knowing that my wife wouldn't lose anything on the payout if I should die!
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01-28-2011, 07:51 PM
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#24
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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Quote:
Originally Posted by afntrn56
I think you did the right thing. If you can hold off using the money for a few years it will grow and then at the older age you can always turn it into an annuity and the amount will be considerably better! If you took the payouts I am assuming you have no choice of when to start them and you would get taxed on them as well. With the lump sum you can put it in a tax deferred area and pull it out later! That was the kicker for me as well as knowing that my wife wouldn't lose anything on the payout if I should die!
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I had a real hard time deciding. Thanks for the response!
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01-29-2011, 11:28 AM
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#25
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Confused about dryer sheets
Join Date: Jan 2011
Location: Parma
Posts: 5
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You never know what is the right thing to do. Luck has a lot to do with it. I like the idea of taking the money and run, this way you are guaranteed the money and more if you invest it properly. If you take the annuity you get no growth. If you take the lump you might make out much better depending on our economy. The best part is if you leave this earth your wife will at least recognize a nice sum of money if you take the lump. Nobody can really tell you what is best because it is really a crap shoot when you think about it. The only way to make out big if things go right for you is to take a lump sum. No guts no glory. Good luck
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02-07-2011, 04:27 AM
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#26
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Recycles dryer sheets
Join Date: Jan 2011
Location: Scotts Hill, TN
Posts: 105
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Just my 2 ₵ (from someone who doesn’t like annuities). I would take the cash payout. The annual payout they are giving you represents just over 6% of the lump sum payout. I feel confident that I could get a better return than this from a well diversified equity portfolio over the long term – and keep control of the principal.
Of course with an investment portfolio – you are taking risk. So if you are the zero risk type, then maybe it’s worth paying the annuity fees to get a lifetime income stream (actually annuities aren’t risk free – they are only as good as the company that is providing it).
But I’m more of a control freak type (don’t want the annuity company to have control over my money – you’re kind of locking in for life with them). I’m also comfortable with the ups and downs of the stock market and know (after being through a couple downturns) that I’m not the type of person to jump off the rollercoaster at the bottom.
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02-07-2011, 11:35 AM
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#27
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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[QUOTE=Aeowyn;1034220]annuities). I would take the cash payout. The annual payout they are giving you represents just over 6% of the lump sum payout. I feel confident that I could get a better return than this from a well diversified equity portfolio over the long term – and keep control of the principal.
Thanks, above pretty much summarized my thoughts when I decided to take the lump sum. Let's hope Wellesley produces an average annual return over 6% over the next 35-40 yrs!
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02-07-2011, 11:36 AM
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#28
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Full time employment: Posting here.
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
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[QUOTE=golfnut;1034323][QUOTE=Aeowyn;1034220]annuities). I would take the cash payout. The annual payout they are giving you represents just over 6% of the lump sum payout. I feel confident that I could get a better return than this from a well diversified equity portfolio over the long term – and keep control of the principal.
Thanks, above pretty much summarized my thoughts when I decided to take the lump sum. Let's hope Wellesley produces an average annual return over 6% over the next 35-40 yrs!
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