How To Value My Pension?
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- เผยแพร่เมื่อ 9 พ.ค. 2016
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I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, aiming to retire comfortably
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Angela Lynn Shilling is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing
I have a pension that pays 80 percent of my wage and I make about 130k a year. They will pay me about 100k a year until I die. Not worth cashing anything to me.
Thirty years ago when I was young, Ramsey wasn't around but I had his same logic. I thought I could get a better return and my wife would get 100% instead of 60%. Now that I am nearing retirement age, I wish I hadn't done that. My Stock Mutual Fund return wasn't near what Ramsey hopes, and I am afraid of running out of money. If I was afraid the company was going to go belly up, maybe but otherwise, a secure retirement fund is priceless.
Ramsey's MAGICAL investment funds are still to be disclosed. I went to one of his local financial advisors and the funds they offered me did not performed historical as he says. 🤡🤡🤡
Dave's traditional audience of debt-ridden idiots weren't ever in a position to call his BS on stock market returns. Those of is with 2-3 or more decades in the market can only shake our heads. Then there's the sycophants who lecture you on "millionaire next door" stuff. They tend to struggle with a response when you ask them how they are defining "millionaire" and tell them you, too, meet that definition, and it's not all it's cracked up to be. The advantage of these videos is that those of us who only know Dave through this usually broke acolytes can see that he isn't really as stupid as the idiots might make you think., he just understand broke people psychology and what they need to hear.
Been out of the market for years,been burned three different times,and doing just fine.
Retired 12-31-22 after 28 1/2 bring home more than I did working the fire department.
i have to wait until I"m 55 which for me is 2-1/2 years, I can't wait to hang up my helmet in July 2026, i'll have done 25, 32 w/dispatch and military buyback. I'm just hoping this upcoming contract that's to be negotiated nets me some raises to boost up that pension into the 90k range. I won't miss this job or the people in it.
@@jumpingjeffflash9946 I'll be going at 52 with 26 years of service. I will defer my pension to 55 so I don't get penalized and live off my 457b from age 52-55. No reason to stay any longer than I have to. I will probably start a new career in something else for at least 10 more years or until I want to stop working completely. All of it is possible because I saved early and consistently. The more you save and invest, the less you are completely dependent on your pension.
Everybody I know that took the buy out has loss their A$$.The rest of us took the pension and is doing fine.Your pension is protected by the PBGC.I sleep good a night,money is not a problem.
Pension much better
Just doing some quick math here. 80k would grow to 310k at 7% annually over 20 years (or an inflation adjusted 10% annual return). A 4% withdrawal rate on 320k would = 1,033 per month. I think health, of both your company and your self, should also be considered, but if I were relatively confident with that then I'd actually wait for the 2,000 per month.
I think they offered him a 10% discount rate 🤦♂️🤦♂️🤦♂️🤡🤡🤡 snakes
I agree 100 percent, I don't know what Ramsey was thinking by telling that guy to sell.
Ramsey is talking nonsense here
@@tedirmiger3813 dave sells an advisor network that charges aum fees that's why dave tells them to sell. Dave wants his cut.
Dave only understands debt and real estate. His investment knowledge and advice should be ignored. Complete trash.
But a state pension can guarantee a steady payment until you die; whereas a 401k can run out of money. So, if you live to 100, you will always get some money from your pension and social security; whereas, you could run out of money from a limited 401k.
C Connelly pensions are on shaky ground,most are underfunded
pensions are basically tax-payer funded briberies. Cities are going broke from pensions...
C Connelly - tell that to retires of General Motors, the city of Detroit, or anyone who’s pensions is in CalPERS (California) and you will find your are incorrect.
On deck for failing soon is Chicago’s pension.
Even our Social Security system is only funded to 70% at year 2035. So, you are correct for the previous generation, not for ours. What is terrible is we have known about this future shortfall since the 70’s, yet Baby Boomers, and their massive voting power, kicked this unfunded problem down the road so they could finish their lives in overconsumption, at the cost of the next. Now, it’s starting to happen, has happened with a few pensions, with many more pension failures to come.
UltraViolet Xrays they are usually going broke since they borrow against their pensions and fail to fund them properly.
UltraViolet Xrays not really. The employer is putting in a % of your salary to cover your pension plus returns. If they are taking risks on the monies they put in they are shaky. But if they are conservative let’s say wanting a 3.5% net return a year over an employees work career of 35 years then it’s an even trade off.
Most people are unable to not spend windfalls. I assure you 95% of people who get the buyout will spend it. If the pension is protected (safe) I’d keep it and start a new retirement stream at your new job.
I value my pension and SS as 100% of my retirement income. My expenses must be less than my income. All my other assets are left untouched. This is my financial plan and it works for me.
The Ramsey rule of thumb, go with Dave’s advice on debt, go with the opposite of Dave on investing.
Yes his numbers on investing are best case scenario, rarely ever happens that way. He has always preach a 12 percent return with is very high and not likely every single year
And sell your car
Yes this.
I know this has nothing to do with the actual video but after taking my financing course in college I can actually follow this conversation. The discount rate and everything. I guess college does teach you things.
Broken clocks
How much did that college cost? Just curious….
@@miamitreo not worth it. I should have just went to a 2 year and would have been in a better position.
@@LilMermaid28 ah yes. Reality has hit the young enthusiastic person. College is very rarely worth it. hence so many people are beggin for debt forgiveness. but anyways. You couldve learned those same things on the internet if you really wanted it.
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Yes, you can do better by putting it into a good growth fund. BIG QUESTION: Can you keep your grubby paws off theses funds for that period of time? In the caller's case that time is 20 years.
As an actuary I’m not agreeing. Be sure of one thing, the company wants to buy you out because it’s best for them. They don’t want the investment risk and they diversify across thousands of employees with countless financial experts managing the money. We are all in the same market but they can diversify across generations and have access to financial instruments you can only dream of. You should place a premium on stability.
And Dave is more than generous with his return rates on investments.
10% return is unlikely to happen, no one really has a crystal ball but the problem with pension plan going into trouble is the miscalculation regarding the return rate and this is 7-8 % that they usually assume for pension growth, i would leave the money in the pension as a retirement diversification and start saving into other vehicles like 401k or taxable, real state, etc, he has a small amount of money even if the company can not afford to pay the pension, pension insurance will take over
Getting 11% pretty consisstanly over 15 years that include ls a couple down turns
No doubt Tim Smith. I took the lump sum.
@Tim Smith Correct.
Dave Ramsey has previously mocked those who point out that annualised market returns are lower than the figures that he would suggest or who point out that stock market real returns will be lower than the nominal returns that he cites. His main argument is that these arguments only support his argument that people should save. However, this is an example where failure to consider annualised market returns and inflation can lead to bad advice. The discount methodology uses a rate that is equivalent to annualised market returns. Moreover, Ramsey did not ask about whether the figure of $2K per month is the nominal amount that will be received at age 65 or whether it will be the inflation-adjusted to be the same real value as $2K per month in 2016 dollars. If the benefits are indexed to inflation, then it is clearly wrong to compare the discount rate applied to the nominal rate of stock market returns.
From what I hear a lot of companies are trying to eliminate pension programs if they have one.
They still have pensions. Look for companies that take care of you.
Present value of a perpetuity = annual income/current yield on a 30 year U.S. treasury bond.
How do you factor in a military retirement when planning on asset allocation and amount required for retirement. An example, if I retired from the military with 30 years of service I would make 75% of my base pay (currently 10,350). I would gain 2.5% per year and will have another pay raise bringing that monthly up to -13k per month before taxes.
Currently maxing my tsp 19.5k and 6k in Roth as well.
Take whatever the yearly annuity amount is and times it by 25. Then count that number towards your fixed income (bond) allocation.
Curious what is an "RIQ" ?
What makes you think the pension goes away when he dies? Did you read his contract? Taking the 80K is bad advice. A lot of pensions have a certain period, years they have to pay, or can be structured with survivor benefits. If he lives 20 years, which would be his normal life expectancy, that’s 24,000 x 20 = 480,000 in future benefits, more if he lives longer. 401k’s are in the toilet, as I write this. Your assuming 7%, which a lot of the large pensions have been struggling to average. I think this is very poor advice.
*You’re assuming
Agree 100%
JNJ 10k
MMM 10k
MCD 10k
RGR 5k
BA 5k
SBUX 5k
AAL 5k
Apple 10k
Amazon 10k
( Insert dividend stocks totaling ) 10k
80k well spent on a long term retirement porfolio.
You will make more than 10% AND be able to live off the dividends in 20 years. Never touching the value of the account.
100%
Yes i hear about the money is gone
Having a fix income in your pro folio is not a bad thing. Not your only income stream, I’d leave it in that annuity from the company.
100% what I was thinking. Also, keeping it in an annuity is another safeguard from touching the money.
That’s all you need. Nothing else.
Different retirement buckets have alot of advantages
Wow they really lowballed that guy.
Are these numbers still accurate? I want to understand more about this.
Can we do financial peace university in Spanish?
Even pension plans are not 100% guaranteed. Ask anyone that worked for the city of Detroit.
They still get a pension. But still not as good as the Michigan politicians who work part time and still get full wage pensions.
My husband will get a Pension that will pay him anywhere from $25,000 to $28,000 per yr when he retires it will pay him that much until he dies and if he dies before me the pension pays me the same amt. till i die there are not to many Pensions that will do that.
@William Shatner Its a NY State Pension he is a Thruway Authority worker its actually one of the strongest pensions around, but who knows if Cuomo gets more greedy than he is now it could become a problem in the future.
Michigan does that too.
Many pensions do that exact thing. Mine included.
Not indexed to inflation? Terrible.
I was offered a lump sum for a pension, but I never received the information on how much the lump sum would be... I requested this information twice and never received it. Is this illegal or unethic ??
$2k is not going to be much in 20 years. It'll be worth about half.
So, think of it as him getting $80k today and $1k equivalent later. About a 7 year pay out. I would not bet on living long. I could also hedge against my inflation today since the $80k is actually worth $80k today.
So in 20 years even at a low percentage, I can grow it to maybe $400k.
So, $2k/mo has nothing on $400k.
Curious... How come Dave doesn't mention the 100% joint survivor option?
….or the 10 year certain option!
Because the 401k can be passed down, the pension dies with you and then your spouse....
I have a mandatory pension. Required 8% from me, employer matches us with 18%. Should i had an additional 15% of my income to a Roth IRA? I mean after being debt free of course
brian lovelady Dave would discount the 8% by half (4%)so he would say put @least 11% on top of it to be in your OWN NAME. Which he emphasizes because the pension isn’t in your name. But 15% that you mentioned would be great since it’s more money for you! Just don’t forget to enjoy it too as you go!
This is very bad advice. Taking a gamble that stocks will return 10% is not the same as getting a guaranteed income stream for life, one you can structure so that your spouse gets a benefit when you die. Look at it this way: the company pension is guaranteeing you a 6-7% return on $80k. Most people wouldn't pass on that kind of a deal if they understood this. The company is getting a much better deal in this than the employee.
Dave gave sound, good advice
In the short term, but in the long term of 20 years+ the risk is minimal and the extra 3% makes a hug difference.
Nari Rhee If I have 20 years to retirement, there's NO WAY I`m leaving it to grow at a pathetic 6%, I mean inflation is practically right at your heels. The reason some people would be content with it is because they allow their emotions, i.e. short term worries about the market, exceed logic and data, like mutual funds in two decades are likely to average over 10%. The worst 20 year period in US history gave an 8% return, still exceeding the aforementioned scenario. I don't see how making 8-10% return instead of 6-7% return is very bad advice.
You're so full of bull ..
With a $20k investment, I get 25% return as a landlord. I get my money today. Retirement is not a pile of money, it's a stream of income. When Dave said "you have to grow it first," I tuned him out. In my crowd, he's good for entertainment purposes only.
Wrong way of looking at this. A pension is a lifetime payment. A 401(k) isn't.
Why take the risk? Is their a cola built in? Think about 20 years at 24k per year versus a flat fee of 80k. I would take the pension before the payout.
ELP = Dave’s commission
Should be about a $300k buy out
Agreed
Why would anyone put money into a mutual fund?
Can a couple live off only ones state pension .. and the other person has no money for retirement nor have any savings ..and are 47 yrs old now . Can a couple retire off that?
Those who can role it over are either very young or in a minority. Most Americans at age 65 can not afford to do that they will have to use pension or lump sum just to scratch out some kind of a living.
What happens to employment pension plan if a person becomes disabled at 50 years of age and can’t work any more ??
What will happen to pension ??
You are able to draw your full pension
How do you roll 80k into an IRA when the annual contribution amount is 7k??
Rollover dollars do not count as Contribution dollars. Every dollar in an IRA is either a Contribution, a Rollover, or an Earning. And they have different rules.
He will only end up with more money if the stock goes up once they go down he could lose it all... stocks go up and down... he gotta hope it grows and hope he can retire on its up swing... and for that reason I’m out
lol shark tank
Ppl don't realize that you make waaaay less in public service. In ten years, 5 yrs straight without a raise, I went from making about 10% more than my husband to him making about 20% more than me. Oh I forgot we did get jean days ☹
Pension means nothing when you haven't had a raise in 5-7 years. That's how they get you. Public sector pays pension instead of Social Security so once you've worked 5-7 years without a raise do you walk away from the pension and start at ground zero under Social Security
Also my husband is in the price sector and his social security is waaaay less than my REQUIRED pension contribution. They take 14% out of my check
Some jobs aren't available in public sector.
@@ebbiesweetngood9966 you can get both, jobs offer both pensions and social security.
Does those calculations work the same for every pensions?
NO. He is guessing. The discount rate that pensions use to calculate the present value is dictated to them based on what is called the GATT Rate. Dave needs to do his homework.
Also some pensions pay a cost of living adjustment. Dave always overestimates market returns
Do not take investing advice from a talk show host.
When you have a pension, you don’t need to save for retirement or live like your poor for 40 years. Your pension replaces your income. Some pensions you make MORE money than working. No reason not to incur debt and live your life how you want to.
I don’t invest, I have a guaranteed union pension waiting for me in 12 years. I’ll be taking home more money retired than I do working.
@@Nino_J My husband's union has mismanaged the pension and it has been in critical status for years (meaning they don't have the funds to meet future obligations to pensioners). We hope it is there when he retires.
With today's underfunded and mismanaged pensions, I find that to be dangerous thinking. I would count only around 70% of what is promised if your pension is as underfunded as so many are. I am a pensioner and continue to work full-time in a different career (self-employed, flexible schedule) to max out future social security and also have adequate retirement savings so that all three legs of the stool are strong enough to withstand losses or benefit cuts.
@@kcoleman8852 I'm confused by your comment. The employers run the pensions. The Unions have a contract with the employer. The unions and employers negotiate the pension plan but it is the employer who actually runs it.
No! You don’t want more than enough to retire. You want more than more than enough to retire.
Does my pension count towards my 15%
LOL - I was gonna use my pension for my truck note. Still deciding on what to do.
I’ve earned a smaller pension. So far after deductions of healthcare, dental, vision and taxes, it will cover my HOA for my condo. I’ve saved 100k, and spent a lot of money on home remodeling, all paid off. My rental home only has about 20k left owed, heloc paid off. Should have bought my CA condo years ago, didn’t know commute was so nice, especially back then. SS can pay condo mortgage later, and I continue to save. My mom was a housewife so it took a lot for me to get over the world I entered where men don’t support women anymore. It’s sad. I wonder where I’d be if I knew I had to take on that role and was raised for it.
In order to get $2000 a month or $ 24000 a year. (Going with the 4% rule). One would have to have an equivalent of $600,000 in an IRA to pull that 24k annually at a 4% draw. Unless I could be assured I could grow that $80,000 buyout to $600,000 in time. I would not do it. I would not be that confident in betting on the market return with its ups and downs that much to forego that 24K steady income stream. Did his pension have a cola? Another factor to consider but it only makes the needed equivalent even bigger. I hope he didn’t take the offer.
The 4% rule (safe withdrawal rate) is virtually obsolete…your info is 30 yrs outdated. The 4% rule was based on someone retiring at the absolute worst time possible. Even the person who came up with the 4% rule says that it’s outdated. 18 yrs ago he increased the percent on his calculation. He now says the average safe withdrawal rate is historically 7% and above. The “4% rule” guys name is Bill Bengen.
silly dave still advertising mutual funds lol
Ayuda mi
I'm pretty new to a career with a pension. I have 25 years till I can retire. I found out that I cannot contribute more than I already am based on my pension rules. Any thoughts on if it's overkill to start a Roth or a 401K through something like Vanguard? I want to be secure, but I also do not want to be greedy and just see how much money I can end up with by retirement.
Hi Eric, Taking care of your own financial future is not being greedy. If you cannot contribute any more at work then you can certainly open your own Roth IRA and contribute up to $5,500 per year to that. DR and many financial advisors recommend putting no more than 15% of your take-home pay into retirement.
Too much money at retirement would be a great problem to have! I'm one of those people who would rather count on myself than hope that the pension doesn't go broke down the road (some of them will). Being a retired teacher, I was always pretty sure I'd have a pension, but figured I'd better invest on my own also. If Social Security can run out of money, so can any other pension system. YOU HAVE TIME ON YOUR SIDE, with 25+ years to go. Compound interest is a beautiful thing!!
Invest in a Roth while you can, at the maximum level you can. Those withdrawals will be tax-free later (taxed going in) and will balance out the withdrawals from tax-deferred accounts like 401ks and pension income.
Medicare premiums are means-tested, so if you have a certain level of higher taxable income in retirement, you'll pay a higher Medicare premium. Tax-free withdrawals from Roth accounts will help you mitigate that.
Eric, absolutely do a Roth IRA or something on top of the pension. A) it just gives you more cash and options when you're older. B) some pensions are terribly managed and should not be relied upon ... look at Detroit for a famous bad example.
John Duffy why only 15%? If you can do more. Do more right
Does that include all your retirement, i.e roth ira, ira, 401k... or just 15% into 401k and more if possible into others?
Even fans of hillbilly Dave must admit he's sometimes dead wrong. He's wrong here.
80000 is a ridiculous lowball offer. My pension is 1300 a month; BP offered me 250k, I said no thanks.
Yep, he's also ignoring the likelihood that the pension comes with partial or even full paid medical insurance premiums, as well. And survivor benefits. Dave just imagined that stack of 80k on the table in front of him and lost his brain.
Jesus is coming soon. Someone in a South Carolina Dollar General Store just told me.
....this is why you buy real estate free n clear and rent it out...repeat over n over again until you're ready to retire
That dude's pension is worth way more than 80k lol. Terrible advice, Dave. There's a simple formula for calculating NPV of a future ordinary annuity. I can tell intuitively his pension is worth more than 80k.
Im taking lump sum.
This is terrible advice i sure hope this guy didn't take the buyout 😢😢
For investment advice, don’t listen to DR. He clearly has a conflict of interests.
I don't know what to say about you yet
No no someone ghetto cheap
SILVER AND XRP...the greatest investments on the planet.
Mi de investments no mi importa I no speak English to quiero ninero ya no quiero sufrir esta casa ughhhhhhhh I can't die apparently my third eye chakra is open ayuda mi la verga I don't like trucks don't have licenses
I would not listen to Dave Ramsey here
I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $650,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.
Just seek professional help from a mentor or a financial adviser.
HELPFUL TIP It is very easy to make huge profit over a short period of time by investing with the guidance of an expert, i began investing late Sep with JOANNA MALIVA LEE a licensed broker and within 2 months i've made $458,000 from my $75,000 investment.
That's wonderful, i've always been told that investing with an expert has it advantage but i have no idea how to find one
I think i may have actually come across Joanna on linkedin talking about the stock market and she spoke so brilliantly, please how do i get to reach her?
@@larryjones4253 Google search her name ‘Joanna Maliva Lee’ she is quite known for her works.
This is bad advice
Your advice is bad…or you have zero discipline. Many people to include many listeners actually have discipline to heed the advice and not just spend it. The caller is actually wise gathering knowledge to make his decision. You should be listening instead of commenting. This is exactly how people with business and finance knowledge work through this process and exactly what is taught to MBA’s in college. People who build wealth use these principles constantly.
A pension at 65 Lolol this guy is a dueeb
This is SOO Fake!!
Andy B what??