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Subject:  Re: Pension info to consider Date:  10/7/2012  6:47 PM
Author:  gdett2 Number:  71030 of 88819


First, sorry for the mis-info in the previous post.

On the stock market vs inflation/deflation vs elections vs on and on, there is nobody that can tell you with any certainty what will happen, when or in what combination. It is the future.

I would suggest at this point, you just step back and try to get all your factors together in one pile.

At 47 you are probably not getting the SSA info sheets on projected benefits. I believe these start at 50 1/2. You can go to the SSA website and use their PIA calculator to get a "guesstimate" on your SSA benefits.

Also will any of your current employment lead to any sort of a pension? If so, try to get some sort of an estimate on that.

Get your current account balances for your entire savings: IRAs, 401K, etc.

Last, look at what you are currently saving and contributing to your IRAs/401Ks.

With that info, you will have most of the info needed to see what your retirement income might be. There are a number of sites that have calculators that can crunch these numbers for you. It won't be exact but it will give you a ballpark number. Don't rely on just one site, try others.

When you are doing this, plug-in the numbers from your research above. Do it again with the next set of numbers. Write the results of each run and what you changed for each. Only change one thing when you make your test runs so you can see what effect it makes.

I believe this will give you the best idea of how the different pension options will work for you and give you a better idea of which option to choose.

Taking the lump sum and buying an annuity is probably the highest cost/lowest return option. Your company is paying a discounted lump sum and the annuity company is taking a pretty good slice off the top paying you another discounted amount.

Depending on how long you have to make this decision, it may end up that making your best guess is your best option. Lots of things can change in an 18 year period.

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