Done gone and did it [Retire]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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WoodSpinner
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Re: Done gone and did it

Post by WoodSpinner » Mon Dec 11, 2017 6:13 pm

Earl Lemongrab wrote:
Mon Dec 11, 2017 1:35 pm
I have to finalize my pension benefit. The choices are:

Lump sum: $534,707.76
Single Life Annuity: $3,376.15

I'm single, so no beneficiary option. Running SPIA calculators, they come up with about $2500/month for that lump. I think the annuity makes the most sense. I have a substantial "lump sum" in the form of my investments. Building around the monthly pension makes sense to me.
Congrats! I used a similar approach for my decision. In addition, the annuity really makes a significant difference in your safety net if something goes wrong. I did some probalistic modeling and it really drove this home.

Lots more decisions along the way to retirement. Fortunately this is a great place to bounce ideas and clarify your options.

Any plans for the next phase?

:sharebeer

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Earl Lemongrab
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Re: Done gone and did it [Retire]

Post by Earl Lemongrab » Mon Dec 11, 2017 6:20 pm

Note that "annuity" is just a description of the payout. It's a single-life annuity, paying monthly, for my life. At this time, the pension is administered by Megacorp not an insurance company. That can always change. The company is very solid at this time and I suspect it will be for quite a while. I'm not very concerned about the security of an annuity.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

duckcalldan
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Re: Done gone and did it

Post by duckcalldan » Mon Dec 11, 2017 6:25 pm

triceratop wrote:
Mon Dec 11, 2017 2:20 pm
Earl,
Thank you for the help in the past, and good luck in retirement. I wish you success in your secondary career of moving assets around betwixt brokerages. :beer
Beat me to it!

Congratulations. After 9 months of retirement, life has never been better. I wish you the same amount of happiness.

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Earl Lemongrab
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Re: Done gone and did it [Retire]

Post by Earl Lemongrab » Mon Dec 11, 2017 6:31 pm

As far as plans, I intend to up the amount of time allotted for reading. I also have a few projects in mind to investigate.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

amitb00
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Re: Done gone and did it [Retire]

Post by amitb00 » Mon Dec 11, 2017 6:40 pm

Congrats Earl and best wishes for the next chapter

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Watty
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Re: Done gone and did it

Post by Watty » Mon Dec 11, 2017 6:41 pm

Earl Lemongrab wrote:
Mon Dec 11, 2017 1:35 pm
I have to finalize my pension benefit. The choices are:

Lump sum: $534,707.76
Single Life Annuity: $3,376.15

I'm single, so no beneficiary option. Running SPIA calculators, they come up with about $2500/month for that lump. I think the annuity makes the most sense. I have a substantial "lump sum" in the form of my investments. Building around the monthly pension makes sense to me.
If you have not had a good physical in a while you might want to get one before your decide to find out if there are any health issues that you might not know about. You can ask your doctor if there are any tests that he or she would recommend even if the insurance company would not pay for them Spending a couple of hundred dollars to get more information could be money well spent.

2comma
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Re: Done gone and did it

Post by 2comma » Mon Dec 11, 2017 6:58 pm

Earl Lemongrab wrote:
Mon Dec 11, 2017 1:35 pm
I have to finalize my pension benefit. The choices are:

Lump sum: $534,707.76
Single Life Annuity: $3,376.15

I'm single, so no beneficiary option. Running SPIA calculators, they come up with about $2500/month for that lump. I think the annuity makes the most sense. I have a substantial "lump sum" in the form of my investments. Building around the monthly pension makes sense to me.
I think that's a wise choice for most. It's nice to have a part of your expenses covered and automatically deposited in your account monthly. I think I've heard most take the lump sum, considering how most manage their retirement savings I'm contrarian enough to believe most aren't making the right decision.

Oh, congratulations! I'm 4 years into retirement at 58 and absolutly no regrets.
If I am stupid I will pay.

diy60
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Re: Done gone and did it [Retire]

Post by diy60 » Mon Dec 11, 2017 7:45 pm

Earl Lemongrab wrote:
Mon Dec 11, 2017 6:31 pm
As far as plans, I intend to up the amount of time allotted for reading. I also have a few projects in mind to investigate.
Congratulations, I read all of your posts. I hoping you next project is "how to maximize brokerage bonus while implementing a Roth horse race and re characterization strategy" :sharebeer

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Taylor Larimore
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Re: Done gone and did it-- what's next?

Post by Taylor Larimore » Mon Dec 11, 2017 8:00 pm

Earl Lemongrab wrote:
Mon Dec 11, 2017 6:31 pm
As far as plans, I intend to up the amount of time allotted for reading. I also have a few projects in mind to investigate.
Earl:

You might do what I did--help other Bogleheads achieve the same retirement goal that you have achieved.

* You have a wealth of investing experience.

* You have made over 3,000 Boglehead posts so you are well-acquainted with the Boglehead Forum!

* It will keep your mind active.

* You can post any time it is convenient.

* You will learn from others (as I have) which will help you in the many years of investing ahead.

* You will enjoy the satisfaction of helping others (as others have helped you).

Think about it.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

LarryAllen
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Re: Done gone and did it [Retire]

Post by LarryAllen » Mon Dec 11, 2017 8:31 pm

Wooooo whoooooo! Party on!

Congrats and good luck!

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dkdoy
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Re: Done gone and did it [Retire]

Post by dkdoy » Mon Dec 11, 2017 8:33 pm

Enjoy! I hope to be in that position soon!

staythecourse
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Re: Done gone and did it

Post by staythecourse » Mon Dec 11, 2017 9:02 pm

KlangFool wrote:
Mon Dec 11, 2017 1:04 pm
Earl Lemongrab wrote:
Mon Dec 11, 2017 11:57 am
I was clicking some stuff on the Megacorp web site and next thing you know I've submitted a retirement notice for January 31, 2018. :)

Getting set up for hand-off of duties and whatnot over the coming weeks. A new chapter.
Earl Lemongrab,

I hope it works out for you. My friend's co-worker told her employer that she is quitting in 2 months' time. The employer laid her off immediately so that she cannot qualifies for retiree's health benefit.

KlangFool
Interesting. You should have your friend call a labor lawyer for some advice. I am not sure that is illegal. There are numerous cases where the employers tried to fire employees right before they vested some retirement benefits and they employers have lost those cases. Every contract has a assumption of good faith. it is NOT good faith to let your employer you want to retire x time and then the employer turns around and fires you to prevent you from getting some promised benefits.

Again, not a labor lawyer, but would recommend a quick free call to one and see what they say or do some googling on google scholar for such cases before (I am sure there a PLENTY).

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

KlangFool
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Re: Done gone and did it

Post by KlangFool » Mon Dec 11, 2017 10:48 pm

staythecourse wrote:
Mon Dec 11, 2017 9:02 pm
KlangFool wrote:
Mon Dec 11, 2017 1:04 pm
Earl Lemongrab wrote:
Mon Dec 11, 2017 11:57 am
I was clicking some stuff on the Megacorp web site and next thing you know I've submitted a retirement notice for January 31, 2018. :)

Getting set up for hand-off of duties and whatnot over the coming weeks. A new chapter.
Earl Lemongrab,

I hope it works out for you. My friend's co-worker told her employer that she is quitting in 2 months' time. The employer laid her off immediately so that she cannot qualifies for retiree's health benefit.

KlangFool
Interesting. You should have your friend call a labor lawyer for some advice. I am not sure that is illegal. There are numerous cases where the employers tried to fire employees right before they vested some retirement benefits and they employers have lost those cases. Every contract has a assumption of good faith. it is NOT good faith to let your employer you want to retire x time and then the employer turns around and fires you to prevent you from getting some promised benefits.

Again, not a labor lawyer, but would recommend a quick free call to one and see what they say or do some googling on google scholar for such cases before (I am sure there a PLENTY).

Good luck.
staythecourse,

She could avoid all these problems by giving the standard 2 weeks notice or only give notice after she qualifies for the retiree's health benefit.

KlangFool

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siamond
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Re: Done gone and did it [Retire]

Post by siamond » Tue Dec 12, 2017 12:32 am

Image

investor997
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Re: Done gone and did it

Post by investor997 » Tue Dec 12, 2017 1:20 am

Earl Lemongrab wrote:
Mon Dec 11, 2017 1:26 pm
DaftInvestor wrote:
Mon Dec 11, 2017 12:59 pm
Congratulations!
For your megacorp - is there any difference between resigning and retiring? Just curious.
Not much. You have to retire to get pension benefits. Everything else is the same.
Firstly, congratulations!

Question on your pension benefit: Had you chosen to resign rather than retire, under what condition in the future would you have been eligible to take the pension benefit?

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Earl Lemongrab
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Re: Done gone and did it

Post by Earl Lemongrab » Tue Dec 12, 2017 10:18 am

investor997 wrote:
Tue Dec 12, 2017 1:20 am
Question on your pension benefit: Had you chosen to resign rather than retire, under what condition in the future would you have been eligible to take the pension benefit?
Fill out the necessary forms for commencement.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

staythecourse
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Re: Done gone and did it

Post by staythecourse » Tue Dec 12, 2017 11:16 am

KlangFool wrote:
Mon Dec 11, 2017 10:48 pm
staythecourse wrote:
Mon Dec 11, 2017 9:02 pm
KlangFool wrote:
Mon Dec 11, 2017 1:04 pm
Earl Lemongrab wrote:
Mon Dec 11, 2017 11:57 am
I was clicking some stuff on the Megacorp web site and next thing you know I've submitted a retirement notice for January 31, 2018. :)

Getting set up for hand-off of duties and whatnot over the coming weeks. A new chapter.
Earl Lemongrab,

I hope it works out for you. My friend's co-worker told her employer that she is quitting in 2 months' time. The employer laid her off immediately so that she cannot qualifies for retiree's health benefit.

KlangFool
Interesting. You should have your friend call a labor lawyer for some advice. I am not sure that is illegal. There are numerous cases where the employers tried to fire employees right before they vested some retirement benefits and they employers have lost those cases. Every contract has a assumption of good faith. it is NOT good faith to let your employer you want to retire x time and then the employer turns around and fires you to prevent you from getting some promised benefits.

Again, not a labor lawyer, but would recommend a quick free call to one and see what they say or do some googling on google scholar for such cases before (I am sure there a PLENTY).

Good luck.
staythecourse,

She could avoid all these problems by giving the standard 2 weeks notice or only give notice after she qualifies for the retiree's health benefit.

KlangFool
Agreed this could have been avoided. I am just saying that it would benefit (pun intended) to make a quick call to a labor lawyer and see what they can do. It costs nothing so no risk. If she had 2 months left to get benefits and that is why she chose that date and has not had any issues that would consider her getting fired up to that point it is going to look like the employer fired her just to prevent her from getting said benefits.

That is NOT going to look good to a judge as this has happened OVER and OVER again. I am pretty sure there are victories on the side of employees in such situations so it would make sense to call one. If I am correct (who knows as I am not a laywer) then a quick letter citing the cases to the legal department and/ or HR of the company will usually be enough for them to reverse course as a lawsuit where they know they are likely to lose is not beneficial to them.

The reason employers do this type of nonsense is NOT because it is legal, but the employee does not fight for their legal rights.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

chw
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Re: Done gone and did it [Retire]

Post by chw » Tue Dec 12, 2017 11:28 am

Congrats Earl. Pulled the plug myself in October after 37 years at various Mega Corps.

Enjoy the ride! :sharebeer

MrDrinkingWater
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Re: Done gone and did it [Retire]

Post by MrDrinkingWater » Tue Dec 12, 2017 12:27 pm

Congratulations to you!

You might want to double check if your Retirement Plan at your MegaCorp might offer a few more obscure, but seldom used choices for single unmarried employees who are retiring. You have probably read through everything carefully, but I just wanted to chime in, just in case you hadn't looked at all the details that are in your retirement plan.

Besides Single Life option, Some MegaCorp firms offer a retirement annuity that might let you select a niece or nephew, or other non-spousal recipient, to receive a small annuity for a few years if you were to unexpectedly pass away soon. Other plans might offer something like a 120 monthly payment guarantee on paying an annuity to you or your estate, if you were to pass away anytime in the first 120 months of retirement.

Thanks for letting us know. I always enjoy reading your posts. Choosing the annuity seems better to me, though I know many like to take the lump sum.

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Earl Lemongrab
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Re: Done gone and did it [Retire]

Post by Earl Lemongrab » Tue Dec 12, 2017 1:43 pm

Yes, you can take a reduced amount for a ten-year certain period. You can also take a higher payout to age 62, reduced after that, as a bridge to Social Security. I think the straight annuity makes the most sense.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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David Jay
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Re: Done gone and did it [Retire]

Post by David Jay » Tue Dec 12, 2017 3:50 pm

Congrats! I have another year-plus before I am done...
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Yukon
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Re: Done gone and did it [Retire]

Post by Yukon » Wed Dec 13, 2017 6:40 am

Congratulations!
Don't Work Forever.

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Top99%
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Re: Done gone and did it [Retire]

Post by Top99% » Wed Dec 13, 2017 7:46 am

Congratulations and keep us updated on how it is going. :beer I went part time from Megacorp in last Feb so I have one foot in the retirement pool. Liking the water so far and no sharks have bitten me.
Adapt or perish

2pedals
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Re: Done gone and did it [Retire]

Post by 2pedals » Wed Dec 13, 2017 8:29 am

Congratulations Earl
:sharebeer

I am looking forward to my post in a little over a year from now and my farewell email to my colleagues at work. Perhaps a good topic for a new thread would be how to create an unique and attractive email that will have lasting impressions.

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Tyrobi
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Re: Done gone and did it [Retire]

Post by Tyrobi » Wed Dec 13, 2017 9:09 am

Hard work pays off. Congrats!
Three-fund portfolio | "Simplicity is the master key to financial success." John C. Bogle

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jimmyq
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Re: Done gone and did it [Retire]

Post by jimmyq » Wed Dec 13, 2017 9:52 am

Congrats Earl!
I hope to follow in your footsteps in a few more years. I am jealous as I wish I had a nice pension benefit to help ease the transition, but alas, that is not in my future.

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Koogie
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Re: Done gone and did it [Retire]

Post by Koogie » Wed Dec 13, 2017 1:15 pm

Congrats. I haven't been here long but you seem like a nice fella and it's good that nice things sometimes happen to nice people.

To a great 2018 for you and yours.

:beer

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sergeant
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Re: Done gone and did it

Post by sergeant » Wed Dec 13, 2017 2:49 pm

KlangFool wrote:
Mon Dec 11, 2017 1:55 pm
Carefreeap wrote:
Mon Dec 11, 2017 1:47 pm
KlangFool wrote:
Mon Dec 11, 2017 1:40 pm
Earl Lemongrab wrote:
Mon Dec 11, 2017 1:36 pm
KlangFool wrote:
Mon Dec 11, 2017 1:34 pm
This event just happened right before Thanksgiving. And, it is a megacorp.
I didn't intend to express doubt. I'd take a layoff if I could get it. That would be better for me. After all, I don't get any severance or unemployment.
Earl Lemongrab,

She was laid off before the end of the year. Hence, she lose her bonus, 401K matching contribution plus retiree's health benefits.

KlangFool
This seems retaliatory. If she gave written notice I would think she's got a good case.

My DH gave about 3 months notice. Company reorganized his position so that hurt his ego but at least he kept his pay and other benefits.

When to give notice is so dependent on the situation.
Carefreeap,

1) This person had worked for this employer for 10+ years. She was being nice. She paid for her naiveness.

2) Someone else will retire from this employer next year. She will only give 2 weeks' notice.

KlangFool
Why? I would give 15 minutes notice. Congrats to the OP.
Lincoln 3 EOW!

vested1
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Re: Done gone and did it [Retire]

Post by vested1 » Wed Dec 13, 2017 3:27 pm

Congrats and welcome to the club Earl. Make sure that you sign up for the class of 2018 if you haven't already.

I took the lump sum because the pension with 100% survivor was terrible. It worked out for me, but it looks like you are making the right decision based on your numbers.

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Earl Lemongrab
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Re: Done gone and did it [Retire]

Post by Earl Lemongrab » Thu Dec 14, 2017 4:57 pm

Well, the fortune cookie in today's Chinese combo lunch approves, see below.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

MandyT
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Re: Done gone and did it [Retire]

Post by MandyT » Fri Dec 15, 2017 12:49 pm

C'mon in, the water's fine! :D

I have every confidence that you've thought things through from the perspective of finance as well as other aspects of your life. I hope you enjoy retirement as much as I have so far, which is A LOT. :sharebeer

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