Reply to Feds: are you counting on FERS for retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Question - how do you value your FERS? I don't have an exact number, but say my spouse's last 3 years average out to $220k which equates to $72,600 (33%). What is the total value of that?[/quote]

What do you need the value for? If you want a number for a net worth pissing competition, assume the value of the annuity is equal to the size of a pot of money that with a 3% annual return would give the same payout. In your case that would be 2.4 M. No one in their right mind would buy the annuity from you for that amount. Further, you would be insane to spend that much money on an annuity of that size. It is, however, the highest number that can be justified in the pissing contest. If you have not guessed, calculating the "value" of an annuity is a stupid exercise.

For retirement planning, treat the annuity like SS. Take you expected expenses in retirement, subtract your estimated SS payment, subtract your estimated pension and whatever expenses that are not covered need to be covered by TSP/IRA/...
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What an awful response. Maybe the poster has a number in mind for retirement and wants to see how to include FERS in there. Goodness, some of you people on here need to relax.[/quote]

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