On Mar 21, 12:40 pm, iarwain <iarwai...@[EMAIL PROTECTED]
> wrote:
> 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.
Putting funds into your retirement is similar to buying an annuity, so
just look at what income you could get from an annuity.
> When it comes to withdrawing, isn't the recommended safe amount to
> withdraw in retirement 4-5% of your investments?
With an early retirement, that my be too heavy of a withdrawal.
> 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.
You may be able to convert your 401k to a Roth after you retire giving
you additional tax savings.
--
Ron
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