Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
jthomps Date: 3/14/99 11:50 AM Number: 9117
The age 65 amount is $106.03 and the age 55 amount is $51.42. My analysis suggests that I take the money early.

I agree with your analysis. There are many ways to look at these problems, but here is one I like. You could "synthesize" the Age 65 scenario by taking the $51.42 and investing it in something that grows at 7.51%. In ten years the $51.42 becomes $106.03. So the synthetic programs pays yourself from the 10 year old investment every month, and can continue forever. It gets even better if you ever die because the synthetic program will pay off for ten years after you die.

Assuming you believe you can make better than 7.51% average return, the early payoff is better. I think "index funds" is the lowest yield strategy proposed on these boards, and it will beat 7.51% in the long run very handily.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.