I agree it's pretty much of a wash between the two options, with the
advantage probably going to the pension because it's guaranteed.
Especially when you consider the doom and gloom forecast of recession
or worse in the upcoming economy, it might be tough to get even the
10% interest I mentioned. Obviously it would be helpful to know at
what age you are going to die when figuring this out, but that just
isn't possible.
When it comes to withdrawing, isn't the recommended safe amount to
withdraw in retirement 4-5% of your investments?
To answer a few of the questions, in eight years I will be 55, the
earliest possible age I could retire. I plan to hopefully retire at
least no later than 60. I have a 401k and a Roth IRA getting regular
contributions anyway - the question is what to do with this particular
$4800. My 401k isn't maxed out yet, but with return percentages
falling this past year and things expected to get worse I thought it
might be more cost effective to contribute to the pension instead.
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