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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 75339  
Subject: Re: Interest rate assumption Date: 5/9/1998 10:19 AM
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TiggerToo,

<<I am looking for suggestions for interest rate assumption for "Amortization Method" for Significantly Equal Periodic Payments (SEPP) in order to avoid the 10% penalty for early withdrawal.

If you don't have suggestion for rates, what method do you suggest to calculate a rate? I am also looking for rational to support the suggestion.>>

You're fairly safe in using a rate that's between 80% and 120% of the federal mid-term bond rate.

I discussed the methods for use of Section 72t calculations awhile back. Here's a link:

http://boards.fool.com/Registered/Message.asp?id=1040013000805003&sort=postdate

If you haven't read that missive, you should. This is one area where you want to proceed cautiously.

Regards....Pixy
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