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URL:  http://boards.fool.com/ltltlets-assume-you-can-make-10-on-your-20081355.aspx

Subject:  Re: Cashing out Pension to IRA? Date:  1/1/2004  5:10 AM
Author:  ONuallainxx Number:  38331 of 74759

<<Let's assume you can make 10% on your personal investments. $30,000 today at 10% will net 3.452 times your money in 13 years...or $103,560 at age 65. Then, at 10%, you can take out $12,164/year for 20 years or better than twice the pension plan amount.<<

In this day and age, I think that it would be very dangerous to assume a sustained and/or average annual 10% return until retirement followed by a sustained and/or average return following retirement.

Thorough review of the pension plan terms is crucial before a decision is made to roll over.

Nobody - not the canniest of investment professionals - can honestly pretend that a 10% return over the next 20 years is a sure thing.


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