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Kades-margolis

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The $100,000 I can elect to rollover would be taxable if not handled properly. That's one of the issues. I don't want to be taxed now that I'm in a higher tax bracket. If I elect to leave this amount in my retirement account, I would receive about $130 more per month in my retirement check. Here's where it can get complicated. I have different options and each one pays out differently and also has additional benefits.

One option would be to take the full retirement (leaving my share in) and receive the maximum amount each month. But upon my death, there would be nothing left for my survivors.

A second option would be to take a lesser amount per month and my survivor would receive 100% of my check for the remainder of her life.

Another option would be that my survivor would receive 50% of my monthly check for life. In this case, my monthly income would be between the two listed above.

Another option would be to take all of my shares out ($100,000), invest this amount, and of course receive the lowest monthly retirement check of all the examples listed above.

Anyway, almost all Pennsylvania teachers withdraw or rollover the money they put into their retirement. All I really wanted to know was if Kades-Margolis is a reputable company with low fees and no surprises. I presume that if my union (Pennsylvania State Education Association) is endorsing them, then the PSEA must be getting a kickback. How do I find this out? My union won't give me this information. I know that teachers' unions in other states work in this corrupt way. I just want to know some facts. Maybe this is the wrong place to get the information I need to know in order to make an educated decision regarding these issues.

BTW, there are even more retirement options than the ones listed above. I can see how educators are getting ripped off left and right. I personally know of several individuals who lost everything listening to who they thought were good financial advisors. I realize one of many things I've learned over the last several years, don't trust anyone with your money!!! Can't take anything for granted: believe nothing of what you hear and only half of what you see. I guess thats the world we live in!

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In order to help you, you need to provide all investment options for this one option that is listed below, that is what are the choices of how the money is invested in this one option. Are there other choices in the below option that provide different financial outcomes, because 1.8 percent on 100K does not make sense. I agree with Sierra's last post.

 

" One option would be to take the full retirement (leaving my share in) and receive the maximum amount each month. But upon my death, there would be nothing left for my survivors. "

 

Ira

 

 

 

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Guest Sierra

Serendipity:

 

The maximum dollar income option provides the highest income for the life of one person. The actuaries call this a single life option. I will use the tables of the NYC Employees Retirement System and your $100,000 as an example.

 

Assume you are age 60 and elect the "maximum" and decide to keep the $100,000 with the retirement system in Pa. Your $100,000 will generate 0.09775 or $9775 per year for life with all payments ceasing upon your death. Assume you desire to provide the same income for as long as one of two people lives---you and your wife of the same age. The annuity income rate is now 0.0827. So we multiply $100,000 by 0.0827 and get $8270 as an annual income payable for as long as one of you is alive. Assume the same as the above but that you desire to guarantee half of what you get to your wife if she survives you. We now must multiply 0.0895 by $100,000 to arrive at $8950 per year for your life and upon your death $4475 per year for the remainder of your wife's life should she survive you. This is how it works regardless of the DB pension plan.

 

Having said all that, you and your wife need to decide on a course of action. Should you annuitize the $100,000 or roll it over to an IRA and be responsible for investing it in such a way that you can reasonablly expect to equal the income that you would otherwise be guaranteed if you left the $100,000 with the retirement system. But before you do ANYTHING you must realize that the $130 per month ( your prior post said $150) or $1560 per year makes no sense.

 

Peace and Hope,

Joel L. Frank

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A 1.8& return is not a good investment choice, even ignoring the fact that the principal disappears. Find someone you trust, and get an IRA. I know several happy Vanguard customers. They just slect a set of mutual funds within Vanguard by and age-related asset allocation model, and readjust every year. Vanguard has much lower fund expense ratios, whihc makes them a good choice for this kind of strategy.

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Guest Sierra
A 1.8& return is not a good investment choice, even ignoring the fact that the principal disappears. Find someone you trust, and get an IRA. I know several happy Vanguard customers. They just slect a set of mutual funds within Vanguard by and age-related asset allocation model, and readjust every year. Vanguard has much lower fund expense ratios, whihc makes them a good choice for this kind of strategy.

Let's wait and see if Serendipity posts a correction to his stated $130 per month income if he left the $100K on deposit with his retirement system. We should not base our advice on the $130 amount being accurate.

 

Joel

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Guest Sierra

Serendipity: You get us all worked up and then you let us down by not contributing what you should to the discussion. If you paid a fee only planner to give you the advice you would be getting here for nothing it would cost I dare say at least $100 per hour.

 

Hoping to hear from you;

Joel (disappointed) Frank

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