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Old 08-10-2010, 02:54 PM
 
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Yes, one should definitely take the health of the pension into account along with some of the things golfgal mentioned regarding age etc. a non-COLA pension taken very early can eventually end up worth a hell of a lot less if inflation comes storming back like some people think.
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Old 08-10-2010, 03:07 PM
 
Location: Los Angeles area
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Quote:
Originally Posted by slackjaw View Post
Yes, one should definitely take the health of the pension into account along with some of the things golfgal mentioned regarding age etc. a non-COLA pension taken very early can eventually end up worth a hell of a lot less if inflation comes storming back like some people think.
Excellent point, Slackjaw, about inflation protection, which I totally forgot to include. It is so hard, impossible actually, to know what will happen inflation-wise over the long term, although it seems it will stagnate over the next few years. That's one of the strong points of Social Security, which is so much maligned, I think unfairly for the most part.
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Old 08-10-2010, 07:49 PM
 
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Originally Posted by volk2k View Post
Oh I definitely agree.... my question was a little rhetorical

It's just that I hear about some people close to retiring saying they have a million in the bank... and people ooh and ahh...

But in general.... I'd still rather be the pensioner with "$0" in the bank.

I think a calculation of Net Worth in the case of the pensioner could be calculated in terms of the cash value of some type of annuity.... but would that pensioner actually count that in his/her net worth?
I missed that! Anyway, I think pensioners are better off too. Something worries me about counting on my investments for my lifestyle (i.e. 1 million in the bank and withdrawing 4% a year)
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Old 08-10-2010, 08:16 PM
 
Location: Texas
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~

Who's guaranteeing that $6000 a month pension ?

Even public pensions are in danger at present.


~
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Old 08-11-2010, 03:08 AM
 
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pensions are guaranteed by state and federal funds...it may not be the deal you thought your getting but most of it should be there.
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Old 08-11-2010, 03:09 AM
 
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Originally Posted by cyclone8570 View Post
I missed that! Anyway, I think pensioners are better off too. Something worries me about counting on my investments for my lifestyle (i.e. 1 million in the bank and withdrawing 4% a year)
you can always make your own pension by converting to an immeadiate annuity, not that id do that with all my money but if it lets you sleep better then put enough in for your comfort.

those also are backed by state and federal money and offer you a lifetime of income no matter what the markets do.

AND NO i dont sell them.
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Old 08-11-2010, 05:01 AM
 
Location: Londonderry, NH
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When working and professional class wages have been continuously sacrificed on the altar of Mammon on Wall Street and inflation has driven up the prices of nearly everything how are most people going to save? When savings bank interest is less than inflation why should they? Do you know anyone with 6 months wages in a savings bank? I do not.
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Old 08-11-2010, 02:28 PM
 
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Originally Posted by GregW View Post
inflation has driven up the prices of nearly everything how are most people going to save? When savings bank interest is less than inflation why should they?
We've been in one of the lowest inflationary environments in history, in fact the big fear is deflation, yet you're complaining about the inflation?

Quote:
Do you know anyone with 6 months wages in a savings bank? I do not.
Hi I'm slackjaw, nice to meet you.

Now you do.
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Old 08-11-2010, 02:35 PM
 
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i certainly do also...our retirement portfolio calls for 7 years of withdrawls in cash instruments as well as another 7 years in bonds.. we can endure 15 years of crappy markets before liquiding any equities at a loss......

odds of that happening are next to zero
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Old 08-11-2010, 02:58 PM
 
Location: Los Angeles area
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Default Me too

Six months or more in the bank. Always have (except the first couple of years when I just started my career - wife was still in college and we married on a shoestring). It's the only way to go. Takes away a lot of stress.
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