Search found 2344 matches

by #Cruncher
Sun Aug 20, 2017 10:03 am
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Warning! This post will get even more esoteric. I wonder if the board has a policy against discussing epistemological issues? After all, we don't want people coming to blows over the meaning of words like "year". :wink: How many years are there in the 366 day period from 12/31/15 to 12/31/16? A fai...
by #Cruncher
Sat Aug 19, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 65
Views: 5255

Re: IBonds: My worst bond investment over the last 5 years

... inflation-adjusted return should have been exactly what was expected. Zero. Actually the five year real return for I Bonds purchased May - October 2012 is slightly more than zero: about 0.17% points more to be precise. This arises because of the "0% composite rate floor". According to TreasuryD...
by #Cruncher
Sat Aug 19, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 65
Views: 5255

Re: IBonds: My worst bond investment over the last 5 years

Assuming a 0% on the fixed part: I did (.98+1.38)/2 + (.08+.77)/2 + (0+.74)/2 + (.92+59)/2 + (.59+.88)/2 to get 3.465 and then divide by 5 to get .693% You've made three errors here, Jdilla. The major one, as Lars_2013 points out in this post is that, since you're using semi-annual rates (see here ...
by #Cruncher
Fri Aug 18, 2017 8:20 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Esoteric alert! :wink: This post concerns only the effect of leap years on calculating annual return. It will interest few people. What you posted was only about the total return and did not include the XIRR. That's correct. But for the case you referred to with only two "cash flows", a starting an...
by #Cruncher
Fri Aug 18, 2017 3:38 pm
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 407
Views: 55653

Re: Forum software upgrade bug reports and change requests

... here is how I get rid of that date and time and day and minute clutter :annoyed : When I am quoting to create a post, in the "post a reply" window, delete everything between the last letter of the quoted person's name to that line's closing bracket. Please consider not doing this, Miriam. Leavi...
by #Cruncher
Thu Aug 17, 2017 10:03 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Mutual funds typically report the time-weighted return. Thanks for pointing this out, Ron. After working on this in my previous post , I now see how to calculate the annual return for a mutual fund much easier than I've always done it before. There is no need to keep track of account value, shares,...
by #Cruncher
Thu Aug 17, 2017 2:19 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Note that the time-weighted rate depends only on the percent gains. This means the time weighted rate is the same whether or not distributions are reinvested. Never having calculated a time-weighted return, I was skeptical of this claim. So I applied it against the 2016 prices and dividends for Van...
by #Cruncher
Wed Aug 16, 2017 10:12 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Question: When you are reinvesting your dividends at different NAV are you calculating the shares purchased, adding those shares to the share total and then calculating the ending balance using the total shares purchased including the reinvestment and the ending price? That's exactly right, Doc. To...
by #Cruncher
Wed Aug 16, 2017 3:06 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

The discounted flow equations IRR or XIRR have an inherent assumption or even definition that [t]here is only one rate involved. Of course; how could it be otherwise? The Internal Rate of Return (IRR) is the single discount rate that, when applied to all the cash flows, produces a series that sums ...
by #Cruncher
Wed Aug 16, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: The Mathematics of Retirement Investing
Replies: 123
Views: 13526

Re: The Mathematics of Retirement Investing

I wrote the first post of this thread to show that the cost of using a diversified 60/40 stocks/bonds portfolio, instead of a concentrated 100% stocks portfolio, is small enough . That it's approximately $150 per month for someone earning a $80,000 salary. I would restate this slightly to say "smal...
by #Cruncher
Tue Aug 15, 2017 10:39 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

The question in the OP concerns the effect of reinvested dividends on the XIRR. Reinvestment of dividends does effect the final value but has no effect on the Internal Rate of Return itself . Really? Doc, please enter the following into cells A1:D3 of a blank spreadsheet: Row Col A Col B Col C Col ...
by #Cruncher
Mon Aug 14, 2017 11:30 pm
Forum: Investing - Theory, News & General
Topic: The Mathematics of Retirement Investing
Replies: 123
Views: 13526

Re: The Mathematics of Retirement Investing

Cutting expenses by 3.3% but investing in the higher growth portfolio means hitting the target portfolio size and retiring over 3 years earlier, right? I think "over 3 years earlier" is optimistic, AlohaJoe. I estimate 1.3 years taking into consideration If one retires earlier, one should have a la...
by #Cruncher
Mon Aug 14, 2017 8:18 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

In my experience, the XIRR of a fund account with dividends taken in cash is not the same as the Total Return reported by the fund. Yes; while the two might be the same; in general they will differ since fund total returns assume dividends are reinvested. To illustrate, consider the following hypot...
by #Cruncher
Mon Aug 14, 2017 9:33 am
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 39
Views: 3152

Re: XIRR - Non-reinvested dividends

Depends on circumstances. If you're working with a single stock or fund, then yes, it's a withdrawal. If you're working with a total portfolio balance and the dividends go to a Money market fund, etc which is included in the total portfolio balance, then no it is not a withdrawal. To illustrate thi...
by #Cruncher
Sun Aug 13, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: The Mathematics of Retirement Investing
Replies: 123
Views: 13526

Re: The Mathematics of Retirement Investing

I really like the option you added in your spreadsheet to make the retirement spending something other than 100% of working spending. That can be particularly useful for people paying a mortgage during working years and retiring with a paid off house. Your example of a mortgage made me realize that...
by #Cruncher
Fri Aug 11, 2017 10:33 pm
Forum: Investing - Theory, News & General
Topic: The Mathematics of Retirement Investing
Replies: 123
Views: 13526

Re: The Mathematics of Retirement Investing

Nice work, longinvest! Our objective is for work-years salary minus savings to be equal to total retirement income . It took me a while to understand just what your objective means. Normally one posits a desired retirement income and then backs into the savings needed to attain it. Instead you posit...
by #Cruncher
Thu Aug 10, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Ex Pat Physical Presence Test Spreadsheet/Calculator?
Replies: 5
Views: 745

Re: Ex Pat Physical Presence Test Spreadsheet/Calculator?

The rolling aspect of the law is messing with my mind and I am never confident I am arriving at the correct numbers. I believe you're referring to the flexible way one is allowed to count the days. From Form 2555-EZ 2016 : 2 Physical Presence Test Were you physically present in a foreign country or...
by #Cruncher
Wed Aug 09, 2017 4:14 am
Forum: Investing - Help with Personal Investments
Topic: Is there a calculator to find hurdle rate for stock rotation after paying cap gains?
Replies: 5
Views: 467

Re: Is there a calculator to find hurdle rate for stock rotation after paying cap gains?

How many years until my ABC stock I have rotated into is now doing better than XYZ? (Since on a liquidated after tax basis it does better immediately, marcv, I assume you mean on a pretax basis.) For your example, the answer is 1.6599 years as shown on the 6th row below: Row Col A Col B Col C Col D...
by #Cruncher
Tue Aug 08, 2017 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Need help understanding TIPS funds
Replies: 15
Views: 1317

Re: Need help understanding TIPS funds

In light of these market crosscurrents, and based on our expectation of a rise in inflation and interest rates, we continue to modestly overweight longer-term TIPS. ... This statement from page 9 of the Vanguard Inflation-Protected Securities Fund 12/31/2016 Annual Report is strange on three counts...
by #Cruncher
Mon Aug 07, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion - Math check
Replies: 22
Views: 1354

Re: Roth Conversion - Math check

If you foresee paying a lower rate many years from now it would be good to wait for that. The tax rate would have to be much lower for waiting to pay. If all $95,000 of the IRA conversion were taxable, then the end result is the same if the tax rate remains the same. But this is not the case for th...
by #Cruncher
Sat Aug 05, 2017 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Want to finish mortgage in five years, how much to pay?
Replies: 15
Views: 1688

Re: Want to finish mortgage in five years, how much to pay?

... at our current rate of payment we will be done in seven more years. ... How much would I have to put down annually to pay the mortgage off in five years? Four years? ... Rate: 4.125% Current balance: 280k ... Lump sum payment would begin October 2017 and be in October of each year after. Given ...
by #Cruncher
Sat Aug 05, 2017 2:09 pm
Forum: Investing - Theory, News & General
Topic: Roth conversions after start of SS benefits (for low expense couples)
Replies: 16
Views: 1492

Re: Roth conversions after start of SS benefits (for low expense couples)

This works, but why not just decrease the 50% & 85% SS thresholds 2.5% per year instead of increasing everything else? The results would then be in 2017 constant dollars. Doing this all in 2017 dollars, using $54,700 for SS income (70000/(1.025^10) ~= 54700) one gets a very similar result: ~$17K be...
by #Cruncher
Fri Aug 04, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: Roth conversions after start of SS benefits (for low expense couples)
Replies: 16
Views: 1492

Re: Roth conversions after start of SS benefits (for low expense couples)

3. Inflation (personal exemption, SS and COL): 2.5% (note: I did not inflate the SS 50%/85% limits) This works, but why not just decrease the 50% & 85% SS thresholds 2.5% per year instead of increasing everything else? The results would then be in 2017 constant dollars. At age 70, here are the spre...
by #Cruncher
Thu Aug 03, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with 403b pension plan vs Rollover IRA
Replies: 2
Views: 190

Re: Need help with 403b pension plan vs Rollover IRA

She's 41 ... [can get] retirement money [when] she's 63 ... would be roughly 1500-1800 a month ... depending on which plan she chose. ... every month for life ... she has about 67K ... allowed to ... roll it over into ... IRA ... I'm assuming the $1,800 is for a single life option while $1,500 is f...
by #Cruncher
Wed Aug 02, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: (Not a DCA question) Better to invest a large amount earlier in life?
Replies: 4
Views: 571

Re: (Not a DCA question) Better to invest a large amount earlier in life?

Scenario 2 I take $30,000 of my savings and invest that ... at 5% return for 25 years ... That is a $100,000 difference equal to 15 years of saving $6,500 a year! Indeed (as welderwannabe confirms) $30,000 growing at 5% will be about $100,000 in 25 years. But $6,500 per year also growing at 5% will...
by #Cruncher
Sun Jul 30, 2017 11:59 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity versus Lump Sum math
Replies: 12
Views: 1179

Re: Annuity versus Lump Sum math

The SSA life expectancy calculator says 27 more years for him. We're doing two calculations: ⋅ Invest $197K at 4, 6 or 8% compounded monthly for 27 years ⋅ Invest $1,430 each month at the same 4, 6 or 8% compounded monthly for 27 years Via Bankrate.com savings calculator the res...
by #Cruncher
Sat Jul 29, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 14
Views: 1177

Re: Roth conversion tax question

... our combined SS is projected to start at about 62,000 and our RMDs about 36,000 if we do no conversions. Even though you can have income up to almost $100,000 before reaching the 25% tax bracket, the incremental Roth conversions beyond a certain point have much less benefit. I estimate that poi...
by #Cruncher
Wed Jul 26, 2017 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 21
Views: 2729

Re: Delaying pension benefits - what would you do?

Not buying it and it's obvious that OP didn't either , he's passing up both early retirement and your great "return" argument to delay until 70 ... Delaying pension start from 65 to 66 does provide a very good return. This isn't altered because delaying from 65 to 70 provides an even bett...
by #Cruncher
Wed Jul 26, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Can a TIPS ladder 'fail' ?
Replies: 97
Views: 7081

Re: Can a TIPS ladder 'fail' ?

... it appears that the coupons are only the interest earned(?) and that the adjustment to the face value comes all at once upon maturity? Principal is adjusted daily to match changes in the Consumer Price Index (CPI). It doesn't come in one big adjustment at maturity. Regardless of whether you hol...
by #Cruncher
Tue Jul 25, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: Can a TIPS ladder 'fail' ?
Replies: 97
Views: 7081

Re: Can a TIPS ladder 'fail' ?

Unless you buy zero coupon TIPS (government does not issue them, but probably some broker strips them? As they do with US Treasury bonds?) then you have reinvestment risk. ... as the yield curve is normally upward sloping, ... your coupons will be reinvested at a lower real yield. Firstly, although...
by #Cruncher
Mon Jul 24, 2017 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 21
Views: 2729

Re: Delaying pension benefits - what would you do?

Maybe #Cruncher can provide more detail on how ABS would get a 7.4% return? (I'll use ABS ' revised figures from this post that show $2,628 per month if start at age 65 or $2,903 per month if start a year later at age 66.) If ABS delays his pension from age 65 to 66 he gives up $31,536 (12 X 2628)....
by #Cruncher
Mon Jul 24, 2017 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Amortization Schedule with Extra Payments
Replies: 33
Views: 2614

Re: Help with Amortization Schedule with Extra Payments

... I thought my "Goal Seek" application was very concise , accurate and in stark contrast to providing a link showing all 168 tedious months of an amortization table that really didn't add anything enlightening for me. Your two spreadsheets (referenced in this post and the one following ...
by #Cruncher
Sun Jul 23, 2017 8:30 pm
Forum: Investing - Theory, News & General
Topic: TIPS question - ytm for Jan vs. Jul issues
Replies: 8
Views: 561

Re: TIPS question - ytm for Jan vs. Jul issues

For all years between 2022 and 2027, the ten year TIPS maturing in January have a yield to maturity about 2 basis points higher than those maturing in July ... The same anomaly shows up on the WSJ TIPS Quotes 7/21/2017 : -------- Yield -------- Matures Coupon Jan July Diff 2022 Jan 15 0.125 0.074 2...
by #Cruncher
Sat Jul 22, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 21
Views: 2729

Re: Delaying pension benefits - what would you do?

I have my corrected pension payment at age 65 and also my estimates for ages 66, 68 and 70. ... Monthly payment at age 65: $2628 Delaying to age 66: Payment $2903, return 8.08% 68 Payment $3578, return 9.46% 70 Payment $4470, return 11.14% The return for delaying to age 66 is correct, ABS, but the ...
by #Cruncher
Fri Jul 21, 2017 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Help with Amortization Schedule with Extra Payments
Replies: 33
Views: 2614

Re: Help with Amortization Schedule with Extra Payments

Starting at month 25 of mortgage, add in $700/month extra payment for 9 of 12 months of the year. I put a file together and it appeared that the loan would be repaid around 168-169 months. That looks reasonable. I get 168.2 months assuming the $6,300 extra annual payment is applied $525 every month...
by #Cruncher
Wed Jul 19, 2017 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Pension Survivor Benefit in Lieu of Long Term Care Insurance?
Replies: 27
Views: 1268

Re: Pension Survivor Benefit in Lieu of Long Term Care Insurance?

I have three options for my pension ... 1. Take the maximum benefit, spouse gets zilch after I die: $38,600/yr 2. Lower benefit, but spouse gets 100% for life: $35,207/yr (8.7% reduction) 3. Reduced benefit, but spouse gets 50% for life: $36,828/yr (4.6% reduction) $38,600 to $35,207 is an 8.8% red...
by #Cruncher
Tue Jul 18, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Basic Question on I bonds
Replies: 11
Views: 1180

Re: Basic Question on I bonds

The rate changes every 6 months from the purchase date of the bond. So you will get 6 months at the initial rate, then it will change. Here's how it looks in a table: --------------------------- C o m p o s i t e R a t e ----------------------------- Buy Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov ...
by #Cruncher
Mon Jul 17, 2017 7:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement 2065
Replies: 22
Views: 1917

Re: Vanguard Target Retirement 2065

Just go to Portfolio Visualizer and compare different allocations between something like TSM and ITT (longer data than TBM but similar performance) with and without rebalancing. At least from 1972 to now, the differences I've seen range from zero to under 10 bps. Thanks for mentioning Portfolio Vis...
by #Cruncher
Mon Jul 17, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: gaming the mortgage interest deduction
Replies: 18
Views: 2385

Re: gaming the mortgage interest deduction

How can the term and monthly payment remain constant with varying interest rate? Here's an example. In all cases the 30 year term and $1,000 monthly payment remain the same. As the interest rate increases, the initial principal (i.e., the loan amount) decreases. Interest is the $360,000 total payme...
by #Cruncher
Mon Jul 17, 2017 9:03 am
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement 2065
Replies: 22
Views: 1917

Re: Vanguard Target Retirement 2065

You are suggesting [1] that there is a rebalancing bonus or at least [2] that a portfolio with some amount of bonds will, over the long-term, perform just as well as a 100% stock portfolio. I did suggest [1] that there is a re-balancing bonus. This was a mistake. I should have said "may be&quo...
by #Cruncher
Mon Jul 17, 2017 5:56 am
Forum: Investing - Theory, News & General
Topic: Fidelity Inflation-Protected Bond Index Fund (FSIYX)
Replies: 10
Views: 1717

Re: Fidelity Inflation-Protected Bond Index Fund (FSIYX)

... However, TIPS funds are required each year to distribute this increase for all the TIPS they hold. They include it in dividends along with their TIPS' interest income. Is this why FSIYX's duration is so much less than average maturity? No, this has nothing to do with it. I assume you're referri...
by #Cruncher
Sun Jul 16, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement 2065
Replies: 22
Views: 1917

Re: Vanguard Target Retirement 2065

... I really have no idea why Vanguard has 10% of these funds in bonds when the target date is multiple decades into the future. ... that 10% in bonds reduces the expected return by .4-.5% every year, ... The benefit of re-balancing will reduce this differential. For example, assuming a constant 2%...
by #Cruncher
Sun Jul 16, 2017 10:06 am
Forum: Forum Issues and Administration
Topic: Creating tables in Bogleheads.org forums
Replies: 12
Views: 1593

Re: Creating tables in Bogleheads.org forums

Does anyone know if there has been any improvement in getting information from an Excel spreadsheet into a post, without having to re-type it all? I don't know of anything new. But when I have an Excel table with many rows, I often format it right on the Excel sheet. Here is an example using the Ex...
by #Cruncher
Sun Jul 16, 2017 9:24 am
Forum: Investing - Theory, News & General
Topic: Fidelity Inflation-Protected Bond Index Fund (FSIYX)
Replies: 10
Views: 1717

Re: Fidelity Inflation-Protected Bond Index Fund (FSIYX)

Is the return for a TIPS bond just "adjusted" (i.e., increased) for inflation as the years go by? I'm not sure what you mean by "adjusting" the "return", mitchmcc. If you're asking, "does the principal value increase over the years in line with the Consumer Price ...
by #Cruncher
Fri Jul 14, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: portfolio growth - compounding vs savings
Replies: 15
Views: 1623

Re: portfolio growth - compounding vs savings

... around what number did people notice that their portfolio was growing more from compounding/returns rather than brute savings? This can be calculated for the hypothetical case of ⋅ An initial portfolio balance (PB) of $0. ⋅ A constant amount saved (AS) each year. ⋅ ...
by #Cruncher
Fri Jul 14, 2017 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Annuities - clueless
Replies: 16
Views: 1657

Re: Annuities - clueless

Inflation indexed fixed annuities are hard to find these days. Fidelity has one that goes up 2% a year, ... I tend not to think the rising ones are worth it, just the plain vanilla ones with a fixed payments are worth it ... An annuity that increases 2% (or any specified percent) annually is not &q...
by #Cruncher
Tue Jul 11, 2017 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?
Replies: 29
Views: 1667

Re: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?

... For example assuming 4% growth and a 25% tax rate, by age 93 the accumulated value of the $14,520 annual pension (12 X $1,210) would overtake the accumulated value of the $232,500 lump sum. ... It sounds like you're saying that the lump sum is the better deal until (if) I hit age 93. Is that co...
by #Cruncher
Mon Jul 10, 2017 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?
Replies: 29
Views: 1667

Re: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?

The only real question is whether the ability to have less taxable income now and being able to invest the lump sum for 8 years tax-free before I need to withdraw it somehow adds enough value to make it worth taking the lower payout. To help with this decision I calculated the age at which taking t...
by #Cruncher
Sun Jul 09, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: How does fixed pension affect your target net worth?
Replies: 8
Views: 1144

Re: How does fixed pension affect your target net worth?

... suppose your current retirement living expenses are 100K and your non cola pension is 80k. ... Assume an inflation rate of 2% and after 30 years you will need 181k to fund retirement expenses to the year 1 level ... So ... your portfolio had to provide 20k support in year 1 and 101k in year 30....
by #Cruncher
Sun Jul 09, 2017 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: How does fixed pension affect your target net worth?
Replies: 8
Views: 1144

Re: How does fixed pension affect your target net worth?

In my case I expect a $85K pension at 60, no spouse. My expected age at death is 83 and if I assume an inflation of 3%, then a COLAed annuity of $62K will produce the same present value of $1.44M as the $85K fixed pension. ... Is this a reasonable approach ... ? (emphasis added) While the $62,000 i...