One great thing about taking a break from blogging is that once you start publishing again, people who missed your regular updates contact you with words of thanks and encouragement. Such was the recent case with BrewDog. You might remember … Continue reading
This is a substantive revision to the original Pension Series Part 11 article I published on 18 JAN 2018. I updated this article because I have a new method for calculating the Total Dollar Value (TDV) of pensions that do not possess a Cost of Living Adjustment (COLA). The new method is far more accurate than the old method, so I am updating all articles in which I used the old method. That said, the new formula didn’t change the results of this case study because the estimated value of the pension annuities on offer increased vice decreased. As a result, the new method only strengthened the recommendation I made for the ChooseFI listener to concentrate on comparing the difference in value between her $75,740 lump sum offer and the lifetime annuity starting at age 60. Continue reading
This is an updated version of an article first published in June 2019. It was updated to reflect changes made from a new formula to calculate Total Dollar Value (TDV) for pensions with no COLA, as I did with the reader/subject of this article. Continue reading
Nerd Alert! This article is a follow-up on the lump sum case study I conducted for the ChooseFI listener, Tess, in Part 11 of the Pension Series. If you missed it, that case study also aired as Episode 58R on … Continue reading
We Interrupt Your Previously Scheduled Program … Great news! You don’t have to read me waffling on about analyzing your pension lump sum offer this week at GrumpusMaximus.com. I published Part 8 of the Pension Series as a guest post … Continue reading
The wild card that makes this article different from my other lump-sum articles is that her lump-sum offer was from what’s known as a church pension plan (aka church plan). Continue reading
Grumpus Maximus conducts an academic review of pension lump-sum buyout offers. Continue reading
Even in the scenario with the largest pension, once Don’s pension starts, it goes from covering all the family’s retirement spending to roughly one-third by the 49th year. That’s a giant swing downward due to inflation! Continue reading
If I leave now, how much would I have to save each month for the next six years to replace the difference I am losing? Continue reading
Pension Maximization Part Deux This post is a direct continuation of Pension Series Part 30. In that article, I introduced my general framework for maximizing your defined benefit (DB) pension, which I call Grumpus Maximization. I also walked through the … Continue reading