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Posted on 8/20/21 at 7:50 am to VanJoe
God damn bruh where do you work
Always take the lump sum
Always take the lump sum
Posted on 8/20/21 at 7:58 am to RoyalWe
quote:
QYLD is designed to depreciate in value while you get those inordinate-sized yields. Stay away.
It's literally a higher price today than it was 5 years ago ($22.73 vs. ~$22). It's a little lower than it was when it started 8 years ago (by like 4%). So for the last 5 years you could have taken the distributions every month, reinvested none of them, and have a higher account balance while keeping all those distributions.
To be exact a $1M investment in QYLD @ $22/share in August of 2016 would have paid you $541k of distributions over the the last 5 year. Your $1M investment into it in Aug 2016 would be worth $1,033,181 today with none of that $541k reinvested back.
I can agree very long term it's not a great idea, but for some cash flow in shorter terms, it's not a bad idea. Why I said maybe half there and another half in something that would grow for him like an SCHD.
This post was edited on 8/20/21 at 8:00 am
Posted on 8/20/21 at 8:49 am to thunderbird1100
Y'all convinced me. I'll put 50% in QYLD & 50% IN VTI.
Posted on 8/20/21 at 12:58 pm to VanJoe
quote:
Y'all convinced me. I'll put 50% in QYLD & 50% IN VTI.
Jesus Christ.
Posted on 8/20/21 at 12:59 pm to Pelican fan99
quote:
Always take the lump sum
Dangerous advice for the average Joe.
Posted on 8/20/21 at 2:56 pm to slackster
quote:true. But with a lick of financial sense you should take the sum. Of course it’s possible OP could blow it in 3 or 4 years then he’s screwed but otherwise definitely take the sum
Dangerous advice for the average Joe.
I guess it also really depends on how that 1 mill would be taxed
This post was edited on 8/20/21 at 3:25 pm
Posted on 8/20/21 at 3:51 pm to Pelican fan99
quote:
true. But with a lick of financial sense you should take the sum. Of course it’s possible OP could blow it in 3 or 4 years then he’s screwed but otherwise definitely take the sum
I agree in theory, but in practice, most people struggle to average the 5% or so the OP will need to match the pension. Everything is fine and dandy until their $1MM falls $300k in a year.
Posted on 8/20/21 at 8:31 pm to slackster
quote:
I agree in theory, but in practice, most people struggle to average the 5% or so the OP will need to match the pension. Everything is fine and dandy until their $1MM falls $300k in a year.
What if Op dies in a year? Then his heirs are left with nothing.
Posted on 8/21/21 at 12:31 pm to VanJoe
quote:Presumably the $1M would be tax protected within a retirement plan?
pension plan gives me choice to take one-time lump sum of 1M or receive 5k per month
If so, take the $1M.
Posted on 8/21/21 at 3:08 pm to Costanza
quote:
What if Op dies in a year? Then his heirs are left with nothing.
I don’t recall if OP has cleared up exactly what type of payment option this is. Is it a life with cash refund, period certain, or life only?
Posted on 8/21/21 at 7:50 pm to AndyJ
quote:
wish social security would offer me something like this (I’m 42). I pay the max amount every year. I think I’d accept $250k now and eat the loss instead of my anticipated 100% loss
No way social security gets past y’all to our generation. I’d take $25k now easily
Posted on 8/22/21 at 3:05 pm to slackster
Below are my options.
- Lump sum 1 mil (Roll over to an IRA. Pay tax on amount withdraw only)
- 5k a month until I die. My wife receive nothing if I die .
- Joint and survival annuity. Payment reduced from 5k to 4k a month (20%). My wife continues to receive 4k a month if I die.
Should I hire financial advisor to manage the 1 mil or invest it myself?
Where should I invest 1 mil to generate around 4 to 5k a month on dividend that lasted for 35 years?
- Lump sum 1 mil (Roll over to an IRA. Pay tax on amount withdraw only)
- 5k a month until I die. My wife receive nothing if I die .
- Joint and survival annuity. Payment reduced from 5k to 4k a month (20%). My wife continues to receive 4k a month if I die.
Should I hire financial advisor to manage the 1 mil or invest it myself?
Where should I invest 1 mil to generate around 4 to 5k a month on dividend that lasted for 35 years?
Posted on 8/22/21 at 3:16 pm to VanJoe
You could also answer your question with this scenario:
If I had $1,000,000 in an IRA, would a buy an annuity that pays $5k/month at my current age, and goes away when I die?
If I had $1,000,000 in an IRA, would a buy an annuity that pays $5k/month at my current age, and goes away when I die?
Posted on 8/22/21 at 6:33 pm to VanJoe
quote:
Should I hire financial advisor to manage the 1 mil or invest it myself?
Where should I invest 1 mil to generate around 4 to 5k a month on dividend that lasted for 35 years?
See if you can find a financial planner that can lay out your options/plan. You can decide if you’ll use him/her to actually manage the money separately.
The single life annuity is hard to swallow for most. Considering you’re cashing out a pension, I’d assume you haven’t exactly watched $1 million grow/fall over time like most retirees with 401ks. It’s not difficult to do it right, but sticking to is always the problem.
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