Pension lump sum waiting game to find out how much

Discussion in 'Pfizer' started by Anonymous, Jul 2, 2015 at 11:50 PM.

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  1. Anonymous

    Anonymous Guest

    Take it or leave it??? Discuss.....
     

  2. Anonymous

    Anonymous Guest

    great site
     
  3. Anonymous

    Anonymous Guest

    Here's my plan:

    Take the money and roll it into an IRA. Keep the investment mix conservative so that minimal money is lost. I have other IRAs and 401Ks that I can be more risky with. Hopefully, between them and Social Security, I'll be OK and won't outlive my assets.
     
  4. Anonymous

    Anonymous Guest

    Thoughts on the lump sum - you can easily calculate what a reasonable lump sum payment should be for future income streams. Just google - 'calculate current lump sum value of future pension' and use one of the calculators. Start by going to HRSOURCE and pulling your current pension estimate. Then input that into the model. There are some variables that make a big difference on the NPV. They are the amortization/longevity table and interest rate assumptions. You can get the SSN life expectancy info from the government site. I highly recommend that you do this or have your financial planner do it for you. Its the only way to know if the present value being offered is reasonable. Something else to think about is whether you want the certainty of the future payments or flexibility that having the money in hand right now provides. If you take a lump sum - its part of your assets and transfers to your family at your death - even if you died tomorrow. On the other hand, the pension basically dies with you (with the exception that you can set it up so that your payment is lowered and add a survivor benefit.

    I left Pfizer at age 50 with a reasonable severance package after nearly 20 years. I banked most of it, used some to purchase a small business near my vacation home and have never regretted it.
     
  5. Anonymous

    Anonymous Guest

    Just roll the dice, deny, menu, miney, moe it. Either way it's a gamble. Both options have pluses and minuses.
    The question is are you feeling lucky?