Quote:
Originally Posted by pbkmaine
That's because many advisors charge you a percentage of the money they manage. My husband's pension is fully funded. The present value of his pension payouts was far greater than the present value of the invested lump sum using a 4% withdrawal rate assumption. We took the 75% joint and survivor annuity. Yes, there is a possibility that someday in the misty future his company will renege on the pension. If so, his pension will be reduced by the PBGC. We figured that into the equation. The pension payout still won.
|
Excellent post. We took the pension monthly payout, works fine for us.
The PBGC did have to take over our pension some years ago and they pay out every month. We are not risk takers, and having already lost an enormous amount of money in the market during the down time, we no longer would feel safe risking a guaranteed pension. We also transferred what was left of our stocks into a fixed income plan, which also works great for us.
As they say, to each his own. Only you can know your comfort level and how much risk you are prepared to take on.