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Reply to "How do you calculate the value of your federal pension? "
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]It's worth less than people think. I was making a touch over $200k with the government. I ran the numbers and to stay and retire, it would only make an additional $25k per year (over the 55k-ish that I am already going to make). You can earn that much- easily- with 500k investment in the stock market. I was offered a private sector position at 650k per year. Total no brainer, I took the job. People told me I was crazy to miss the gains on my pension but that math isn't mathing. [/quote] OP basically asked the right question. To save up $500k of after tax money with a guaranteed return (so in treasuries or similar to match the low risk pension) is about $20k per year of additional income [/quote] For those investing over the long term - let’s say 25 years - you would put the savings in something higher growth than treasuries. This takes only about $10K in annual investment to yield $500K at retirement, at which point you can move it to a lower risk, reliable return position and generate retirement income. [/quote]
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