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Subject:  Is my wife smarter than me? Date:  8/25/2006  2:09 PM
Author:  LaJollacowboy Number:  53308 of 88524

I am interested in some feedback from this group. I am 54 and my wife is 51. She is going to retire in 4 years and me in 5. We are both long time public employees with define benefit plans and we are both in good health . Our combined DB will be about $10,500/mo , and I have an option of a lump sum cash out of about 700K in 5 years. My wife says that our combined DB is equivalent to someone else's 401K of about 3.3Million.(at a 4% withdrawl rate) We both have full medical benefits(perhaps saving another 200K over the next 30 yrs) and our DB pension is adjusted upward each year for inflation. She says it is a NO BRAINER..forget about the lump sum pay out. I on the otherhand, belive (with careful homework) I can manage the 700K lump sum into yields of about 20%/yr. Lots of investor have done this with careful study. A portfolio of about 30 stocks should give me enough diversification. Over time I believe I can soundly beat the DB monthly payment. What does this group think?


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