A very weak employment reports is causing interest rates to plunge today, should have a positive impact on Lump sum values
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Doesn't matter, the same is in millions of other references, and many of them are European and German, this fact about hitler is absolute truth, no doubt, I believe it.
Russian propaganda post, note the .ru
http://theamericanchronicle.blogspot.ru/2012/02/treason-of-standard-oil-exxon-during.html?m=1
Chevron (standard oil) helped hitler through the third countries and third companies.
Interest rates will be remaining low for the rest of the year. One of the Federal Reserve presidents was quoted today saying that a June rate hike is unlikely. I bet it's Obama, the destroyer, who has ordered Janet Yellen to keep rates exactly where they are through the Presidential elections in November. Depending who wins the election will determined the Fed's next move. If Hillary wins, rates stay where they are. If Trump wins, they will raise rates in November or December, and again in January. Everything these days is political. There are too few real Americans who are patriots, save our soldiers and mid level military officers. Everyone else is a wh--ewith an agenda.
Again - little 5 year old children who have to get the last word in - Please get off mommies PC and allow this thread to get back on topic, Interest rates.
Thanks.
@HInuCMt-3xih, Then quit replying every time someone says "chump", Chump - LMAO!!
No mirrors here, 3sfy. Only a chump who responds to his name - Chump. LMAO.
@HInuCMt-3viq, Quit looking in the mirror and laughing at yourself then, Chump Boy!!! LMAO!!
@3dwp - laughable, you poor chump.
@HInuCMt-2nnl, No like yours,, your post was only to get your nothing in, childish wittle coward fruit,
You have no chances! You will lose everything , and it doesn't matter what is interest rate, you all will be soon equal in your poverty and you start building socialism, this is for sure, the "usa" will be disintegrated, Alaska and some states will come back to Soviet Union, many states will go back to Mexico, in many states will be civil war, all this is already decided.
Like your last words that you had to get in, 2uqv? Childish.
Yes, little 5 year old children who have to get the last word in. Please get off mommies PC and allow this thread to get back on topic, Interest rates.
Thanks.
I made my point, 2orx. Enough said.
@HInuCMt-2yph, Thanks for revealing your identity as the pitiful butthurt loser with the attitude who was schooled by @1aqr. That's proof that you're wrong and idiots CAN be schooled.
Idiots can't be schooled, 2twa. Nor do they want to be. They all have an attitude until they get a rude awakening. That's going to be you. Remember this post when you get the wake up call.
Thanks @1aqr for the clear and useful info. No thanks to the other guy who contributed nothing and calls other people idiots, most likely the same one with an attitude who replied and calls other people runts because he knows he failed miserably, and knows nothing even after being schooled.
@HInuCMt-2kxw, Thanks for replying and letting everyone know that you got the message, except for losing the attitude.
@HInuCMt-2jie, More like you were schooled by @1aqr. Lose the attitude.
Thanks @1aqr.
@2jie - No problem, just wanted to make things clear, I should have said that. From past experience on this site, if something can be misunderstood it probably will be, especially when it comes to financial matters. Lots of people on this site don't seem to know the first thing about their benefit plans. I've run across lots of people who seem to think that Chevron can reduce their pension to 0 on a whim, like they can do with Retiree Health Care.
@1aqr, I assumed that was a given understanding by all employees, that's why I didn't think it was necessary to mention it, just answer the other posters concern. Nonetheless, that's for clarifying that for the benefit of the idiots among us.
@1axg - Chevron can stop making any new contributions to the retirement plan, so that you stop accruing any new benefits, but they can't take away the benefits that you've already earned. By law, your accrued benefit is yours to keep. And they can't stop making payments to existing retirees either. The only way they can get out of this obligations would be to go to bankruptcy court and get the permission of a judge, something that they are likely to do only as a last resort. It may be a private pension, but it is subject to numerous federal laws designed to safeguard employee's interests.
@1iif, you ask if there's a risk that the annuity pay outs can be reduced in the future either by Chevron or new Government rules? As the world turns, anything can change quicker than you think, my friend. Firstly, don't forget the government inacted the Pension Protect Act (PPA) in 2006. In doing so, it reduced the lump sum payouts for alot of folks who were still years away from retiring. If pension plans come under more pressure again, the government can step in to f*ck things up again. As far as Chevron us concerned, it's their private pension plan. They can change the rules tomorrow if it wants to. They can even terminate the Pension if they are so inclined.
@iyh - the Fed is kosher because it is and has always been run by Jews
@vaz - this guy gets it.
Good discussion. Keep in mind there is also some talk of IRS using new mortality tables from 2017 which all other things being equal is expected to increase lump sum payouts
Any risk that the annuity pay outs can be reduced in the future either by Chevron or new Government rules ?
@-1mra The lump sum is a good idea to stay in the low income bracket for the ACA (pretend you are poor to the IRS/ACA). That way you can minimize your income. It's also good if you plan/need to leave your nest egg to your heirs.
The downside is - you need to be able to afford it. In other words, you should be set to stand 5 to 10 years of a bear market or even a few minor crashes/rebounds. If you have other assets then that's no problem. If not - the 6% (estimate) that you quoted is the most secure investment for life that you can make and will ever get the chance to. That plus COL adjusted SS is generally a nice secure income. The market has not returned that(6%) in the last 2 years. Most of us are not savvy, experienced, dedicated, skilled or even lucky investors. It takes a lot more than looking at past performance and seeing that if you bought APPL,AMZN,TSLA,LNKD,PCLN etc - at that time - I would have this now. That ship has sailed. Most AA's for a prudent retiree are 50/50 or even 40/60 (stocks/bonds). Very conservative. 4 to 6% return is a gift. 8 to 10% is a windfall. Be prepared to live on 2-3%. Just my two cents.
@xbe , congrats looks like you have the financial part of your retirement taken care of
Iam still torn between lump sum vs annuity. Like the 6 percent annuity payouts, but having the Lump sum under my control and take out as little or as much as I want every year will also help with my taxes
@1pyj, your advice is sensible. You are correct about the 5% Early Retirrment Factor for each year you retire before age 60. If for example you are 57 years old and take your pension, in effect, you will surrender 15% if your pension benefit for taking it 3 years early. I took my pension exactly 2 years before my 60th birthday. The benefit was reduced by 10%, but I took the annuity (that earns an equivalent rate of 6.1%) and started receiving guaranteed income right away. I don't have to worry about investing it in the market or outliving the principal amount. Spouse and I are in good health, expect to outlive our mortality age, and have no debt or mortgage. I share your sentiment on future interest rates remaining low for the next 5 or more years. That was what tipped my decision toward taking my pension as a joint & survivor annuity. I have a large sum in my 401k conservatively invested to keep a point or two ahead of inflation, along with $100k in my credit union for discretionary expenses.
Folks, let us stick to the topic
I think with the stock mkt relatively flat in the last 1.5 years, CD rates under 1 percent, my opinion is that it is much better to not cash out your retirement especially if you are under 60. If interest rates stay the same you get a 4 to 5 % risk free return every year until you are over 60, you can't beat that. Of course if interest rocket back up , all bets are off but the chances of that seem very low at least in the near future
Let me know if Iam missing something in my logic
Well pothead you'd be better than Watson at running things.
My money in the bank won't take a haircut. I'll withdraw it all, go to Colorado, buy the best pot available, come back to Texas, sell it, post a lot more than if interest rates were at 50%. How's that for a plan?
Yeah interest rates can go negative and Yellen says they will go negative. This means your money in the bank will get a haircut.
Start researching, the chessboard is set.
Interest rates plunging? Interest rates are already rock bottom to begin with. They have no where to go.
"kosher Fed"--haven't heard that one before
@zeb, good for you. Wait for the best time, but don't forgot about the "time use of money". Money not invested is money lost. While you wait for interest rates to boost your lump sum, the potential to earn a better return in investment is a lost opportunity. Don't save pennies and lose Dollars, in other words. Look at the big picture too. Best to you in retirement.
Iam just waiting for the right time to cash in my lump sum. So far the decision to not cash it in after I was Laid off in 2015 is working for me
Lump sum pensions are calculated using the 3-month corporate bond rate average, not one month's rate alone. Some analysts (perhaps with a political bias) are saying the May month "jobs rate", the main reason for these interest rate jitters, is an "outlier". If so, the nervousness will subside. Either way, the retiree is not obligated to take their pension as soon as possible. They can wait for a time when they think it's best for them.