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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75390  
Subject: Re: retrmnt annuity survivor benefit Date: 6/16/1998 7:33 PM
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Greetings, Meowiz, and welcome.

<<My husband is 56, I am 42. We were married a year ago for first time. At that same time, my husband elected the "early out" from fed. gov.

He has named me as his survivor for the retirement annuity. In order to pass on the maximum possible from the annuity to me per month, in the event of his death, he will need to receive $220. less per month permanently while he is alive. The montly annuity payment he receives now is not his full retirement since he left early. My maximum survivor benefit would be $1300/mo from his annuity.

Question: is there a smarter way to invest the $220/mo? We just want to investigate before we make paperwork permanent. We have no children. I am self-employed with Keogh. >>

I agree with PSUEngineerFool. You are getting a Survivor Benefit Plan annuity from the federal government. You cannot match it at that price in the private sector because it is cost of living adjusted each year. As military and government employee pay goes up, so does the annuity. Perhaps you could invest that $220 per month and beat it, but you will be trading a sure bet for a risky bet. At your age differences, IMHO he is making a very Foolish choice by protecting you with the SBP.

Regards….Pixy

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