Talk of The Villages Florida - View Single Post - Valuation of a defined benefit pension plan
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Old 09-07-2011, 06:15 PM
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rjm1cc rjm1cc is offline
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Do a search on PV present value or Discounted Cash Flow. Look for a calculator.
Lets say you get $1.00 per month and will live for 360 months (30 years). If you think your investment can earn 5% the value today of the $1 per month is about $187.00. Multiply what you get times the 187 and you will have an idea of the value of your pension. The big problem is what % to use. Getting 5% might be hard now. As the % decreases the 187 decreases.
Inflation is still a very big problem for you as the amount of what you can buy each month decreases even though the dollars you receive do not. Therefore you should save and invest part of what you are receiving to help with inflation.