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Subject:  Re: Pension figured into Networth??? Date:  10/15/1999  2:09 PM
Author:  GrayWulff Number:  14578 of 88498

Let's say you will be receiving this pension next year
and it will be paid on a yearly basis and let's use your 6% and assume you will receive this $45,000/yr for
another 30 years.


CPT PV (Compute PV) = $134,582.86

JABoa is the math king around here. He can speak to the details. My eyeball approximation says that $134,582.86 is to small. Assuming beginning of year payment, then first year alone is 45k, second year is roughly $42,450, and third year is roughly 40k for a 3 year total of 127,450; the remaining 27 years must be worth more than $7,200. Even assuming end of year payments, I doubt value would drop that low.

Yes, I get a PV of $619,417 for the same data (end of period payments.) So a value of $600k to $700k seems reasonable.


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