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Posts: 4

can anyone advice on how to gainfully handle the final withdrawl at retirement


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Posts: 92

First off, if you get hit by a bus a month after retirement, your family keeps the final withdrawal, the monthly pension payments stop.

That being said, if you are looking for a more mathematical solution, take your final withdrawal amount and put it into a compound interest calculator as the initial amount adding $0 every month www.investor.gov I used 8% compounded monthly. I wrote down the totals at 10, 20, and 30 years.

Then I took the difference between monthly payments with and without the withdrawal ($6000 with the withdrawal and $7200 without $1,200). If I start at $0 initial investment and add $1,200 a month after how much would I have at 10, 20, and 30 years With the same 8% compounded monthly.

There are obviously a lot of variables, but all things being the same, which works out better. You also have to take into consideration your age, time on the job, final numbers, health, lifestyle, and family. Someone who got on at 20 and worked 35 years with a paid off mortgage may make a different decision than someone who got on at 35 and did 20 and rents.

Ultimately, dont make the decision here. Find a good financial adviser because your decisions are final.

Good luck!

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