Community Chat

[esmeraldagooch]

---

@silentgirl wrote:

---

@esmeraldagooch wrote:

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-withdra...

---

I've not followed the link but I understand your point. I wrote in a generalization from my personal stand point, which should not be confused for advice.

My family has owned banks my entire life.  I'd agree that everyone should sit down with a reputable and trusted financial/ investment adviser.  And that all are not created equal.  Do your homework.  Keep track of your finances and never trust any one individual or financial institution completely.  Always keep an interest in what is yours.

I've been through loss of pension with two friends recently who have been caught up in the Treasury Departments reduction proposal for benefits-It's been devastating for them. Fortunately, they have enough in their pensions along with other investments.  I understand some don't.

To answer your question; no, I am not worried at all. Although, I am mindful in the current environment of unknowns. 

We all have different needs and beliefs about our lives and what we need and I would just hope, we can all whether the storm.

---

This was not the only bad pension in the news.  Many cities in CA are under funded and in the death spiral.... Those who think city pensions are safe are not reading the news.   Now the cities are looking into taxing streaming to help shore up their under funded pensions.   To read more about it...

http://www.zerohedge.com/news/2016-12-08/california-cities-weigh-netflix-tax-online-video-streaming

I also lived in Alabama when the City of Birmingham defalted on its sewer bonds.  Those seniors who funded them were SOL when it all came crashing down.  Think City bonds can't default, look it up.

The OP doesn't say this is their only sourse of income just they were given an option of 3000,000 or pension.   My DH has 3 pensions and one so far has given him a one time cash pay out or use the pension.   This pension has NO survivor benefits.   We took the cash.  

[Drythe]

I do know how to manage my money, I think most of us do.  However, some seem very defensive about their 'lifestyle', so I guess it's a sore subject.

As to the OP's original question - I'll take both, thank you. 

[Peaches McPhee]

What the heck kind of question is this?  It is too vague.

[Leeny]

Yes, the question is vague, but you need to ask yourself what is your lifestyle? What is it going to cost you to live monthly? Are you taking your social security at 62 if you are eligible? Lots of questions. One thing though, none of us know how long we are going to live and you can't take the money with you. It's alot to think about.

[silentgirl]

I think I made myself as clear as I possibly can @esmeraldagooch when I stated in my first post in this thread that;  there was "not enough personal or financial information" to come to a conclusion.

I veered a bit from my usual rule not to discuss politics, religion or finance, thinking this might be a rather generic thread.  But, I think I'll adhere to those beliefs at this point and stand down.

Good luck to you and the OP.

[MyGirlsMom]

---

@heart of savino wrote:

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

retiring at 62 years old..

---

****

Theses were the choices given, either or.

Period

No other details as far as other income or investments. I answered the OP with the information I was given.

p.s. The OP did return and let us know she chose the pension.

Enjoy your retirement @heart of savino

[libbyannE]

Not enough info to answer. A pension of how much?

[SilleeMee]

---

@151949 wrote:

---

@Plaid Pants2 wrote:

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.

---

You don't live on your money - you put your money to work and live off what it earns. You people are very niave about money & investments. We have only a very small portion of our savings invested in stiocks - too volitile - it is invested in bonds - which pay interest so the money grows constantly. Basically - you loan various govt. - state , municipal etc -money and they pay you interest.

---

Interest rates really suck right now. You can't make money on investing like you used to in the past. I remember the days when a cash reserve account paid over 11%. I don't think I will ever see that again in my lifetime.

[Allegheny]

---

@heart of savino wrote:

A  $4,439 MONTHLY lifetime pension. beleive me  i dont have to worry about 

losing the pension since its from a hospital uniom around for 50 years.having

300,000 dollars in the bank and at age 62  i would out live my money.

also does any one know  do you have tp pay RMD at age 701/2  if you have a

non qualifed  traditional  TDA.

---

@heart of savino  I don't know if this answers what you are asking.  It is from the IRS.

Jul 28, 2016 - You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. Roth IRAs do not require withdrawals until after the death of the owner. Your required minimum distribution is the minimum amount you must withdraw from your account each year.

If you don't start taking Required Minimum Distributions within the confines set by the IRS, you can/will be penalized

[151949]

@heart of savino  I wouldn't worry too much about this now as you have 8 years til then and who knows what the laws will be by then. It is almost certainly going to change.