topic Re: PENSION OR IRA in Community Chat

PENSION OR IRA

heart of savino — Fri, 09 Dec 2016 21:46:39 GMT

would you rather have a lifetime monthly pension or a IRA with 300,000 dollars

retiring at 62 years old..

Re: PENSION OR IRA

Allegheny — Fri, 09 Dec 2016 21:52:09 GMT

For me that would depend upon what the pension would pay out each month. Also at what age the pension would start.

Re: PENSION OR IRA

SilleeMee — Fri, 09 Dec 2016 22:19:56 GMT

When I was 47 I became disabled and started receiving an early retirement income which was state retirement fund (PERA). I had a considerable IRA account at the time and withdrew it in its entirety to pay off my house. Now 61, I don't have to worry about a mortgage.

Re: PENSION OR IRA

151949 — Fri, 09 Dec 2016 21:52:29 GMT

I'd need to know the details of the pension.Every pension is different.

Right off the top of my head though I'd say the IRA.

Re: PENSION OR IRA

kaydee50 — Fri, 09 Dec 2016 21:53:08 GMT

Yeah, it would depend on how much the pension is. $300,000 is not a lot of money if you're going to live another 20 or 30 years.

Re: PENSION OR IRA

Catty2 — Fri, 09 Dec 2016 22:00:01 GMT

Not sure how I would answer your question without more information. I feel very fortunate to have 2 pensions and an IRA (not nearly as much as you stated) plus Social Security. Waited until I was 65 to retire to get Medicare.

Re: PENSION OR IRA

Allegheny — Fri, 09 Dec 2016 22:00:08 GMT

Also the type of IRA, Traditional or Roth plays a big role.

Re: PENSION OR IRA

itsmagic — Fri, 09 Dec 2016 22:00:18 GMT

Having a pension is not always guaranteed to exist until you die nowadays. And $300,000 isn't a lot if you live another 20 or so years. So it's hard to choose.

Re: PENSION OR IRA

tansy — Fri, 09 Dec 2016 22:02:20 GMT

Usually I'd take the pension and run but there's not enough info in the OP to make a decision.

Re: PENSION OR IRA

hckynut — Fri, 09 Dec 2016 22:10:56 GMT

I always prefer handling money and don't trust promises. Give me the 300 grand every time. I ain't into gambling with my money.

hckynut(john)

Re: PENSION OR IRA

Allegheny — Fri, 09 Dec 2016 22:12:07 GMT

@tansy

I so agree. Information provided is just too vague to give a decent reponse. IE., will recipient also be eligible for social security. As many said $300,000 over the long term is not much, unless there is another source of dollars coming in.

Re: PENSION OR IRA

151949 — Fri, 09 Dec 2016 22:27:52 GMT

Where on earth do you people live who don't think $300,000 is a lot of money?

Re: PENSION OR IRA

Spinach2 — Fri, 09 Dec 2016 22:31:28 GMT

@151949 wrote:
Where on earth do you people live who don't think $300,000 is a lot of money?

I live in California. No, that's not a lot of money to retire on if you'll live another 20 years or so.

Re: PENSION OR IRA

MyGirlsMom — Fri, 09 Dec 2016 22:31:34 GMT

$300,000 isn't a lot of money, especially if you're depending on living off it for at least twenty - thirty years.

Re: PENSION OR IRA

bri20 — Fri, 09 Dec 2016 22:32:36 GMT

It would depend on the terms of the pension

Re: PENSION OR IRA

bri20 — Fri, 09 Dec 2016 22:33:49 GMT

@151949 wrote:
Where on earth do you people live who don't think $300,000 is a lot of money?

It is a lot of money. But if you have to live off of that for however many years, it's not a lot

Re: PENSION OR IRA

Plaid Pants2 — Fri, 09 Dec 2016 22:50:02 GMT

Let's do the math, shall we?

Take $300,000 and divide that by 30.

You will come up with $10,000 a year.

Now take that $10,000 and sprrad that out over 12 months.

That comes out to $833 a month.

Seeing how much everything costs today, it would difficult at best to live off of that.

Re: PENSION OR IRA

silentgirl — Fri, 09 Dec 2016 22:52:04 GMT

Depends-not enough information, personal or financial.

Yes, collectively 300,000 is a nice sum of money, if it can continue to grow and you are able to live off of the interest without touching the principle amount.

Putting 300,000 in perspective, if you are an individual who made 100,000 a year in your working life, that would only be three years of income. No, absolutely not enough. We are in the east, I would never chance it.

Even for an individual with other forms of income, social security, investments, pension, free of mortgage, car payment and most credit card debt, the income still needs a way to grow. As others have stated if you intend to live a relatively long period. As I hope you will.

The pension would still need to grow.

Re: PENSION OR IRA

esmeraldagooch — Fri, 09 Dec 2016 23:08:43 GMT

Too many pensions are going belly up. Do you really trust yours? Take the money, study annuities with a trusted financial planner.... Not all of them are good. That amount might get you $1.000 a month without touching the $300.000.

Just one in the news...

http://www.zerohedge.com/news/2016-12-08/dallas-police-pension-finally-ends-run-bank-halting-withdrawals

Re: PENSION OR IRA

151949 — Fri, 09 Dec 2016 23:23:37 GMT

@Spinach2 wrote:
@151949 wrote:
Where on earth do you people live who don't think $300,000 is a lot of money?

I live in California. No, that's not a lot of money to retire on if you'll live another 20 years or so.

Maybe not in California but that is a very good savings in many parts of the country - probably most of the country. Of course , it depends on how you want to live in your retirement as well. It wouldn't buy you a mansion on the ocean and a yacht - but a regular life in a regular small home where most people live modestly , it would be fine. Assuming you have SS plus this pension - you should be able to live on the earnings without ever touching the principle. Remember - by the time you retire you probably don't have a mortgage, and you don't need to buy a lot of clothing and your income taxes are very low to none.Almost everyone I know says in retirement they live on half what they made working and feel comfortable on that.