Guest guest Posted November 13, 2004 Report Share Posted November 13, 2004 Joe, That's an easy one. Aside from your "high risk", if you take the 5 year deal you will be paid out $54,900. Properly invested funds should double themseves every seven years. The offer of 15 years at $397 only pays out approximately $72,000 total at $915 per month. So if you chose the five years option and invested the funds you would have $108,000 after an additional 10 years assuming a 7% earnings factor. I say "take the money and run", but that's just my opinion. Joe K. , EA Tax Accountant Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 13, 2004 Report Share Posted November 13, 2004 Joe: I tend to agree with Joe K., the accountant (smart cookie), but want to add a few comments. I am in almost the identical situation as you, except i'm 61. I think i'll make it to about 70. First, NOBODY knows about life expectancy, (could get hit by a truck tomorrow). I have a neighbor who was poz for 20 years, doin great, and keeled over from pnemonia in a week. Another thought is that the company may tell you all to stuff it after 10 years, like many american corporations are doing (my pension is from the govt, but i'm not gloating). For that reason, get it as fast as you can. And as the other Joe said, you would wait for an extra 10 years to only collect about $16,500 extra. You say it is a "bonus" to your regular pension so you might be able to bank some of it. I think your best bet is go for the higher shorter payout. cheers edward <<joecornish@...Subject: AIDS Life ExpectancyI am hoping someone has some knowledge of AIDS life expectancy.My employer is offering an early retirement incentive that pays a bonus to my standard retirement pension. The options runs from 5 years of payments at $915 a month and changes at yearly intervals to $397 a month for 15 years. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 13, 2004 Report Share Posted November 13, 2004 Hi Joe, I think Joe the CPA's heart is in the right place here but I think projecting a 7% return is very ambitious and I would be wary of staking your future on it. It would be great, and everybody would be very happy with that kind of return but nobody said anything about taxes or potential losses or investment set backs or even a beginner's mistake here and there which would chew up your capital. I think it's just not that easy (or safe) to invest money for that kind of return in this environment. Besides, the returns the modern portfolio theorists projections of investment returns are based on the aggregate returns on billions, (if not trillions) of dollars invested, not the individual's portfolio which can vary wildly. So this thinking is useful to banks with billions of dollars and thousands of individual investments but much more difficult for an indivudual investor to achieve, especially in the short run. But lots of investment professionals commonly do project 7% returns. I've seen this figure cited frequently but I've never seen satisfactory evidence (I have actually looked at several sets of "evidence" too) to back up what I believe to be a common misconception that there is some kind of guaranteed return for the individual if he justs invests properly. Ask yourself, if 7% returns are such a slam dunk why is every bank in america clammoring to loan money for 30 years on mortgages at 5%? I know this isn't answering your larger question, just offering a different opinion on how to look at potential returns on your invested money. just my 2 cents Re: AIDS Life Expectancy Joe,That's an easy one. Aside from your "high risk", if you take the 5 year deal you will be paid out $54,900. Properly invested funds should double themseves every seven years. The offer of 15 years at $397 only pays out approximately $72,000 total at $915 per month. So if you chose the five years option and invested the funds you would have $108,000 after an additional 10 years assuming a 7% earnings factor. I say "take the money and run", but that's just my opinion.Joe K. , EATax Accountant Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 14, 2004 Report Share Posted November 14, 2004 I would like to add, you know that my partner Ron who have poz for 18 years, He is 58 years old and still health as horse! He work almost everyday to make living. so AIDS is not death sentence. period! Mark --- edlortz@... wrote: > > Joe: > I tend to agree with Joe K., the accountant > (smart cookie), but want to > add a few comments. I am in almost the identical > situation as you, except i'm > 61. I think i'll make it to about 70. > First, NOBODY knows about life expectancy, > (could get hit by a truck > tomorrow). I have a neighbor who was poz for 20 > years, doin great, and keeled > over from pnemonia in a week. > Another thought is that the company may tell you > all to stuff it after > 10 years, like many american corporations are doing > (my pension is from the > govt, but i'm not gloating). For that reason, get it > as fast as you can. > And as the other Joe said, you would wait for an > extra 10 years to only > collect about $16,500 extra. You say it is a " bonus " > to your regular pension > so you might be able to bank some of it. > I think your best bet is go for the higher > shorter payout. > > > cheers > edward > > > > <<joecornish@... > Subject: AIDS Life Expectancy > > I am hoping someone has some knowledge of AIDS life > expectancy. > My employer is offering an early retirement > incentive that pays a bonus to > my > standard retirement pension. The options runs > from 5 years of payments at > $915 a month and changes at yearly intervals to $397 > a month for 15 years. > ===== Mark Quote Link to comment Share on other sites More sharing options...
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