Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Money and Finances
Reply to "Please explain the federal annuity"
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous][quote=Anonymous]If scenario #1 is a lifetime annuity and scenario #2 is based on an investment balance, wouldn’t it also depend on how long you line? (Not that anyone can predict that.)[/quote] Yeah it might not have ben clear but scenario #2 I had the protagonist purchase a lifetime annuity at age 62, using the IRA money[/quote] One source of risk is market returns. I agree 2.5 percent real is conservative, but I wouldn't be surprised if future returns were much lower than past returns. The last 50 years were atypical for many reasons. But the other question is what the annuity will cost you at age 62, which will depend on changes in life expectancy and on prevailing interest rates. Personally, I would take the annuity. $5K/year guaranteed is a nice fallback to have, especially as, if the new job were in the private sector, your post-government retirement savings will give you plenty of exposure to the market.[/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
