I know I should be talking to my financial advisor about this and I will, but for now I thought I'd get some input here.
Upon retirement in 2-years, I will be receiving the manditory monthly pension from my retirement plan, but will be taking the lump sum that I have paid in over the years and rolling it (tax deferred) into some kind of plan.
The lump sum will be about $225,000.
Question is: what is the safest type of plan to roll this into and what can I expect as a return (monthly/yearly/...).
Thanks in advance.
With 2 years left, no additional contributions, 5% (modest return), and 30 years of payout, the annual amount would be 15,368.40. IOW that's the most you could spend yearly to last you 30 years.
Financial advisors are full of shit. Look at the Journal's list of the best every year. The same person never makes the list. If you find a mutual fund that earns above market return the fees associated with hit will drop your return down to market rate. Index funds are probably the way to do it. S&P 500, Wilshire 5000, etc.
A quant analyst will tell you that through complicated stat research they can predict prices. This has been disproved again and again. And if it were true mutual funds would be ta clear winner (which they are not). In fact many mutual funds under perform the market. Read A Random Walk Down Wall Street.
IM me if you want more details.