[Rainger99]

I have to make a decision on my pension.

I have the following options.

Please note that x changes below.

Single life annuity. I get x every month until I die.

10 year certain amount and life annuity. Pays out for my lifetime and fixed amount for 10 years. X here is about 94% of single live annuity.

50% joint and survivor annuity. I get x for my lifetime and wife gets .5x for her life. X here is 87% of single live annuity.

75% joint and survivor annuity. I get x for my lifetime and wife gets .75x for her life.
X is 81% of single live annuity.

100% joint and survivor annuity. I get x and my wife gets x for her life. X is 76% of single live annuity amount.

Lumpsum. A lumpsum payment. This would amount to 124 months of the single live annuity.

I am thinking the best choice is a lumpsum payment.

On all of the other choices (except for the 10 year certain amount and life annuity), if my wife and I die in a car crash a month after taking the pension, I am leaving a lot of money with the company. On the other hand, if we live 30 more years, we would do pretty well with the 100% joint and survivor annuity.

Any recommendations or suggestions? Thanks.

[Stu from NYC]

Originally Posted by Rainger99

I have to make a decision on my pension.

I have the following options.

Please note that x changes below.

Single life annuity. I get x every month until I die.

10 year certain amount and life annuity. Pays out for my lifetime and fixed amount for 10 years. X here is about 94% of single live annuity.

50% joint and survivor annuity. I get x for my lifetime and wife gets .5x for her life. X here is 87% of single live annuity.

75% joint and survivor annuity. I get x for my lifetime and wife gets .75x for her life.
X is 81% of single live annuity.

100% joint and survivor annuity. I get x and my wife gets x for her life. X is 76% of single live annuity amount.

Lumpsum. A lumpsum payment. This would amount to 124 months of the single live annuity.

I am thinking the best choice is a lumpsum payment.

On all of the other choices (except for the 10 year certain amount and life annuity), if my wife and I die in a car crash a month after taking the pension, I am leaving a lot of money with the company. On the other hand, if we live 30 more years, we would do pretty well with the 100% joint and survivor annuity.

Any recommendations or suggestions? Thanks.

Talk to a fee only professional for advise. In any case I do not see how anyone could advise you with rather incomplete info.

[dewilson58]

Originally Posted by Stu from NYC

Talk to a fee only professional for advise. In any case I do not see how anyone could advise you with rather incomplete info.

BINGO


Close the thread.

[villagetinker]

I took option 1, and then got a VUL life insurance policy for and amount for my wife to live comfortably. This maximized my monthly income, the VUL now has sufficient cash value I no longer have to make any more payments.

NOW as stated above speak with a financial advisor, what works well for me may not work well for you, the devil is in the details.

[Toymeister]

Originally Posted by Rainger99

I have to make a decision on my pension.

I have the following options.

Please note that x changes below.

Single life annuity. I get x every month until I die.

10 year certain amount and life annuity. Pays out for my lifetime and fixed amount for 10 years. X here is about 94% of single live annuity.

50% joint and survivor annuity. I get x for my lifetime and wife gets .5x for her life. X here is 87% of single live annuity.

75% joint and survivor annuity. I get x for my lifetime and wife gets .75x for her life.
X is 81% of single live annuity.

100% joint and survivor annuity. I get x and my wife gets x for her life. X is 76% of single live annuity amount.

Lumpsum. A lumpsum payment. This would amount to 124 months of the single live annuity.

I am thinking the best choice is a lumpsum payment.

On all of the other choices (except for the 10 year certain amount and life annuity), if my wife and I die in a car crash a month after taking the pension, I am leaving a lot of money with the company. On the other hand, if we live 30 more years, we would do pretty well with the 100% joint and survivor annuity.

Any recommendations or suggestions? Thanks.

How much is your wife counting on this income? Is she younger than you? Does she have a pension or annuity? If so do you get survivor benefits on her annuity/pension? Do you care about any of this?

[Tom52]

I can give the the correct answer if you provide the following:

Your age
Wife's age
Your expiration date
Wife's expiration date

Without that information you have to make your best estimates and don't look back.

[Rainger99]

Originally Posted by Tom52

I can give the the correct answer if you provide the following:

Your age
Wife's age
Your expiration date
Wife's expiration date

Without that information you have to make your best estimates and don't look back.

I agree. If I know we are both dying next year, the lump sum is the easy choice.

[CarlR33]

Please, consult FB not the TTOV? You really need a long term financial person.

[Dusty_Star]

Originally Posted by Stu from NYC

Talk to a fee only professional for advise. In any case I do not see how anyone could advise you with rather incomplete info.

This is definitely the correct answer. We don't have enough info to help, & we are not asking for more.

[PersonOfInterest]

Originally Posted by Rainger99

I have to make a decision on my pension.

I have the following options.

Please note that x changes below.

Single life annuity. I get x every month until I die.

10 year certain amount and life annuity. Pays out for my lifetime and fixed amount for 10 years. X here is about 94% of single live annuity.

50% joint and survivor annuity. I get x for my lifetime and wife gets .5x for her life. X here is 87% of single live annuity.

75% joint and survivor annuity. I get x for my lifetime and wife gets .75x for her life.
X is 81% of single live annuity.

100% joint and survivor annuity. I get x and my wife gets x for her life. X is 76% of single live annuity amount.

Lumpsum. A lumpsum payment. This would amount to 124 months of the single live annuity.

I am thinking the best choice is a lumpsum payment.

On all of the other choices (except for the 10 year certain amount and life annuity), if my wife and I die in a car crash a month after taking the pension, I am leaving a lot of money with the company. On the other hand, if we live 30 more years, we would do pretty well with the 100% joint and survivor annuity.

Any recommendations or suggestions? Thanks.

Take the lumpsum which can then has no limits to the investment options.

[villageuser]

When I had such a decision to make, I talked with the people at Merril Lynch in Sumter Landing. They looked at all the data, including my health, my husband’s health, our current ages, what we would like our lifestyle to be, our risk tolerance, the market, and other parameters. There was no charge for this, and I was not a customer of theirs, nor was I pressured to become a customers of theirs. I was quite impressed with them.

Rather than asking people who you don’t know their qualifications, I highly recommend for you to do as I did, and as others have recommended. Talk to a financial expert. Bring them all the documentation they require. Hear their pros and cons of the scenarios based on YOUR needs and requirements. Listen to their recommendation and then decide what rings true for you.

[Caymus]

You may have better success finding a fee only advisor than I did. The ones I talked to either didn't seem more knowledgeable than me or wanted to turn me into an "income stream" for them. On paper those options are equal based on standard actuarial tables. An advisor could help you decide if you have any unique circumstances (i.e. one spouse 80 years old, one 25)

[MikeN]

Ask a qualified financial planner. All you will get here is opinions. Too many variables. Own your own home? Money in stocks or savings? Other assets? Etc. hope it works out for you

[jimhoward]

I recommend not taking financial advice from anyone on an Internet forum….oh wait.

[CoachKandSportsguy]

If the annuity is a fixed amount over the period of time, say until 90 years old,
and inflation is 4% per year over that time period, at what point won't the payment cover the monthly food bill?

Its not advice, its a question ie, size matters. .