UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: RatioFool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75402  
Subject: Re: Pension, annuity, or payout? Date: 9/25/2012 12:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Like present value, actuarial present value is calculated by discounting future payments back to the present. The difference is that the payment to be received in each of the future years is multiplied by the probability of the intended recipient being alive in that year. The probabilities come from a "mortality table." Employers use a single mortality table, i.e. one that does not account for gender differences and other factors. Options like continuing payments to a surviving spouse use different payments and different expressions for probability in future years.

Ratio ~

(I'm not an actuary, but I happen to know a little about what actuaries do.)
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
TMFDeej's CAPS Blog

Name of the Game: Tax Avoidance
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement