http://moneytipcentral.com/how-much-is-100-worth-in-the-future Sustainable Personal Finance Mon, 23 Apr 2012 15:40:09 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://moneytipcentral.com/how-much-is-100-worth-in-the-future/comment-page-1#comment-4447 Matt Tue, 10 May 2011 15:09:17 +0000 http://moneytipcentral.com/how-much-is-100-worth-in-the-future#comment-4447 Thanks for the great question Brian. In order to figure which option is best you would need to provide how long your pension will last. If the pension lasts until you die (sorry for the grim example) you may want to consider how long you think you'll live. If your parents both lived until they were 100 and the pension has no end date you'd be better taking it. The other thing to consider is the rate of return you think you could achieve on your own if you had the lump sum. If you can return a consistent 20% a year you'd be better off taking the lump sum. If you have the time you anticipate collecting the payment and the rate of return in your own investment you can get an exact answer. Hope this helps...good luck! Thanks for the great question Brian. In order to figure which option is best you would need to provide how long your pension will last. If the pension lasts until you die (sorry for the grim example) you may want to consider how long you think you’ll live. If your parents both lived until they were 100 and the pension has no end date you’d be better taking it. The other thing to consider is the rate of return you think you could achieve on your own if you had the lump sum. If you can return a consistent 20% a year you’d be better off taking the lump sum. If you have the time you anticipate collecting the payment and the rate of return in your own investment you can get an exact answer. Hope this helps…good luck!

]]> http://moneytipcentral.com/how-much-is-100-worth-in-the-future/comment-page-1#comment-4355 Brian Sat, 07 May 2011 09:11:39 +0000 http://moneytipcentral.com/how-much-is-100-worth-in-the-future#comment-4355 Hello - I know you're not offering a service... of course.... but maybe you can give me a clue as how to start this for myself? I will soon be 65, and must retire then, on a pension of about 1200 per month. Years ago, I worked for a few years for another (UK) company and they will pay me a small pension of either 5736 a year, or 4275 a year if I accept a tax-free lump sum of 28485 now (the UK tax people will take 30% of the 5736 or 4275, but then refund it each year). I really can't work out which would be better - or is it just about taking a bet on your longevity? Thanks a lot for even a clue! Hello – I know you’re not offering a service… of course…. but maybe you can give me a clue as how to start this for myself?
I will soon be 65, and must retire then, on a pension of about 1200 per month. Years ago, I worked for a few years for another (UK) company and they will pay me a small pension of either 5736 a year, or 4275 a year if I accept a tax-free lump sum of 28485 now (the UK tax people will take 30% of the 5736 or 4275, but then refund it each year).
I really can’t work out which would be better – or is it just about taking a bet on your longevity?
Thanks a lot for even a clue!

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