• Question
  • I am suposed to get 4180 per mnth pesnion from Ford at age 65 with survior benefit what lumpsump

    Asked by a 63 year old man from Arlington, VA on 6/16/2012

    I am suposed to get $4180 per mnth pesnion from Ford at age 65 with survior benefit. What lump sum should I consider or stay in GRP?

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  • Categories: Lump Sum or Pension?, Pensions and Retirement Benefits

Answers

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  • I am a financial advisor / insurance producer here in MI and I should be able to answer your questions.

  • Login to rate this answer:   Answered on 6/18/2012
  • Steve 


    NewRetirement

    San Francisco, CA

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  • Hi,

    One way to calculate this is what it would cost you to purchase a similar income stream - this tool will allow to get an estimate, but you'd have to ball park the investment amounts to see what income it produces for you:
    https://www.newretirement.com/Services/Annuity_Calculator.aspx

    There are a number of other considerations for your question, including:
    1) The credit worthiness of the company / organization backing the pension and the pension plan itself (is it fully funded)
    2) Whether your pension has a COLA (cost of living adjustment built in)
    3) Whether your pension provides for spousal benefits (it does from your question)
    4) Whether you have enough income to pay for your retirement without the pension

    There's a good article on the NewRetirement site from Bud Hebeler here:
    http://www.newretirement.com/Answers/Bud-Hebeler/Lump-Sum-vs-Pension.aspx

    You may also want to talk to a fee only financial advisor - you can find one here:
    http://www.newretirement.com/financial-advisor-marketplace.aspx

    Good luck!

  • Login to rate this answer:   Answered on 6/18/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.