There is one thing that all these viseos seem to leave out that is a huge factor that people dont realize or dont even think about. For me the lump sum payout is what I 100% will be doing. As of now my payback is only about 14 years. Why will I be taking the lump sum and what I wish advisors would talk more about is this. If I choose to take the monthly, either for just me or spousal coverage, and I or my wife and I die in a car crash, nobody gets the money I deserved and worked for! Someone deserves that money and I'll be damned if my employer or whoever they go through gets to basically keep it. I retire at 60 and take the monthly with spousal coverage and we both die at age 61....all that money goes bye bye. Give me that lump sum so I get it in my hands so my kids can get it through my will.

I plan to retire at the end of 2025 at 62 after 36 years in Telecom as a sales engineer. My wife will retire in May 2026 and she's loving life! But walking away from a good income stream and building the nest egg to living from the nest egg is a scary proposition couple with the alarming recession and CPI report

Money laying on the ground people these days are to lazy to bend down and pick it up.

And it emphasizes SAVING what you can so you CAN retire comfortably.

The issue is that 6% threshold is mostly a return of what would be the lump sum principle. The actual IRR on the annuity is generally close to 2% unless there is COLA. 2% is a fairly low IRR hurdle to exceed.

Are you out of your mind, never take lump sum

I can’t stop saving even in retirement. I can’t seem to start spending more. I am 63 and have been retired for over seven years. New house and new cars paid off with cash.

My life changed too when I started doing this and putting money in stocks. The first few years it as really great, but this year I haven't felt like my portfolio is doing well. I have lost more than $40,000 from my portfolio the past four months, and it's now very worrisome.

My partner and I both had to commute 45 minutes or more each way for 35 years. We both retired early.

Love CEFS,MLPS,CLOS,and REITS.I also sell OTM options love Theta decay.I am a income investor and love getting little paychecks every month.Nice video happy investing/stacking.

Getting ready to retire (68)...I hope. I love my daughter and her family (3 kids + new hubby)--hoping they can experience real independence in the next 12 months for all our benefit and sanity. Special circumstances will require them to make hard choices (to save money), causing more stress with no consumable means to temporarily "escape" the added stress. I will be fine as long as we can talk or visit atleast once a week. I know financially it's very much tougher to afford housing and childcare now than 20 or more years ago--but maybe I haven't pushed hard enough. Guess I have attachment issues, too!!

Let me tell you, uSMART is really good. Even if you don’t invest the money, you will still earn a net profit of 4.6%. Even Chow Tai Fook has invested in this company.

I was married 14.5 years and divorced, my QADRO was assessed by administrator and came out $50K , of course there was a bigger amount still left for my ex , I was only given $25 K bec the $50K divided between the 2 of us per law requires , why ? He still have a lot of money in his 401 How come I wasn’t given the full amount $50K?I waited till I was 65 to collect my share

Interesting

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...

Thank you, thank you!

Exactly what I was wondering- very clear and concise. Thanks!

I am from India with a socialist constitution. Don't fret I can tell you exactly what socialism is. IT IS A CRIMINAL ENTERPRISE OF CAPTURING THE STATE AND MONOPOLIZE THE ECONOMY. Thus in my country , the richest people are civil servants and politicians. Same in Russia, china, cuba, Venezuela, Vietnam, Cambodia, etc etc etc.

thank you for the rule of thumb, something missing from nearly all discussions on this topic

This didn’t age well.

Fascinating!

10% so she has over $1,000,000?

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

Really great video thank you

Lump sum will face immediately high taxes for the year. Pension will spread the taxes out on nany years. Do what is the best for your particularly situation. 😂🎉

I have a question I’ll be 41 when I retire and get $120k/year pension without taking lump sum or should I take lump sum of $420,000 and recieve a reduced $75k/ year pension?

Grey zone is still working 🤮

mine works out to 7.9%. Half of my pension includes COLA. I have no heirs. I feel more comfortable doing the monthly I think, paying a tax bill on the lump makes me feel sick lol. What to do?

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

if you die one month into retirement, your heirs either get that lump sum.. or 0.

What if you are single?

1:09 wrong… recasts do not affect interest rates, that’s a refinance. A recast resets the loan timeline and the payment is recalculate basted on time and loan amount. Recast typically make sense when you have a large one time principal payment

So your reaserch concludes retirement takes a lot of money. Brilliant

Interest rate on mortgage is 2.5%. Total disagree with you. Gonna down size as well with a few years. Make it with caveats. Not 100%. Set sail!!

I live in NJ and my property taxes each month are almost double my mortgage so paying off my mortgage wouldn’t really help when I retire. If this wasn’t the case I would stay in my home for a while after retiring but unfortunately I will need to sell.

Lump sum always and invest in index mutual funds. after you die you want the money in your pocket not the companies pocket.

what if you need to pay for a nursing home

Take the monthly and stiff your wife? If I want my wife to get my pension money the monthly payment is much less

I have this exact option in my company. Very useful information!

So the truth is that both sides are correct. WFH is awesome. And it can be done successfully IF you are already an expert at your job. If you are already an expert at your job, you are MORE successful working from home. I work MORE hours from home. I am not interrupted by people chatting in the office. I work during the time I would be getting ready for work and driving to work. I typically work through lunch and grab a sandwich in my kitchen and keep working. Also, as a manager, I can log off at 5 or 6 and start with family stuff BUT if an issue or emergency arises, I can log back in quickly and handle it. NOW THAT SAID, training people who are at home, or hiring inexperienced people as remote is VERY difficult. It isnt the same as a WFH person who's been doing it for 10+ years or in my case, 20. As usual, people are taking one side or the other, when in fact, it depends. Personally, I would rather have a team of experts, who are professionals that I can count on, NOT adding to their exhaustion with commutes, nice clothing, lunch issues, commuting home and for them to spend that extra energy on our customers!

Take the lump sum, tomorrow isn't guaranteed 😮

As a long time retiree: started work and 15, worked until I was 59, and am now 87, I concur with everything said in this video.

nice info

Sorry but gow did you determine the #s for the divisors? 23,000 for the DOW and 2,560 for S&P500?

My wife and I are divorcing, our 401k are almost identical and we work at the same employer. I want to keep the house and if possible, use a portion of my 401k to pay her out of her home equity….roughly $100k. If we agree and if the court orders it can I get a QDRO in place to tap just a portion of my overall 401k? Our retirement plan won’t allow me to touch it unless I quit or get a QDRO

Good information first time exploring this topic very insightful

garbage

How do you compute accounting for taxes? Meaning, do you use the lump sum amount computation with and AFTER TAX amount? Or before? Thank you!

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.