As I pondered the exit from Mega Corp I was struck by the advantages of leaving early and taking the lump sum at today's low interest rates. I was tempted to stay for the money but the sobering realization is that I could toil for a couple of more years and not show any lump sum benefit if (when) interest rates rise. The math is complicated by a lot of assumptions but this one example is that a ~25% increase in rates would lead to a 20% reduction in the lump sum.
I could see rates rising 50% at the drop of a hat. A bird in the hand.....
Resources for Plan Sponsors - Commentary by Mike Barry
My last day is 5/31. Then I start teaching at the local university.
I could see rates rising 50% at the drop of a hat. A bird in the hand.....
Resources for Plan Sponsors - Commentary by Mike Barry
My last day is 5/31. Then I start teaching at the local university.