- Me: 36
- Spouse: 33
- Children: 1 + 1 planned
- NW: 1.1m, mostly tax advantage accounts
- Debt: 0
- Real estate: 0 - rent stabilized (controlled) in VHCOL area
- Lump sum age 36: 25k
- Lump sum age 65: 130k in 2046, in 2046 dollars
- No COLA on the pension monthly payments
- Hedges against early death
- Lump sum goes down if interest rates go up? - I don't understand this one
- Giving up a low risk 6% rate. The pension is from Big 4 Accounting firm. If they can't do this right, we are all screwed.
- Do pensions really have an low risk rate compared to a (90% total us bond and 10% total int bond fund)? My guess is no, they have access to most of the same investments we do. I suspect their institutional access does provide them access to other instruments, but I suspect they are correlated to the general market trends anyway.
- 30 year backtest of the US total Bond Market on portfoliovisualizer.com suggest a 6% rate. Obviously fund expenses will eat the return, but I'll call it equal to "low risk" rate I stated under Cons
Edited: Lumps sum payment in 2046 for clarity