Reply to Valuation of Pension for Retirement Planning

Forum Index » Money and Finances

Reply to "Valuation of Pension for Retirement Planning"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Folks want to include the pensions in their net worth because it makes them feel richer and more able to keep up with the Joneses. It’s kind of pathetic.[/quote]

Is it because you might be jealous of my inflation adjusted $140k annual pension with lifetime benefits?. I retired fours years ago at age 53.  Do I count as part of NW? No I dont but my financial planner recently advised its “worth” about $3.5m ($140x25).  Loser [/quote]

When you croak your heirs get nothing so it’s not an asset.  [/quote]

But for each year they live and don’t take funds from their retirement accounts and invest those funds more aggressively because they don’t need them, their heirs win.

If the pension holder lives 25 years, those foregone withdrawals and higher investment rates will be worth way, way more than $3.5 million to their heirs.

For example, assuming a full investment in stock, just the first year of forgone withdrawal will be worth $1.516 million ($140k* 1.1^25) in 25 years. [/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