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Author: fowlmike Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76420  
Subject: 72t questions -- what Fed rate to use? Date: 10/21/2000 12:59 PM
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There's a Bloomberg Wealth Manager article in the 10/2000 issue by Lynn Brenner that suggests the Federal MIDTERM rate is the benchmark, while a 10/9/2000 Business Week article by Anne Tergesen cites the federal LONG TERM rate [but goes on to use the MIDTERM rate in its example]. Any idea how I might tell which is the correct rate to use?

Also, with regard to the annuity method of 72t calcualations, can anyone share the formula for determining the factors that might be used to work backwards from a desired dollar amount of income? I have a commercially supplied brochure that gives me the factors, but only on 1/2% interest rate steps...

Thanks for any info or comments!

Fowlmike
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