Comments on: I have decided to take the Lump Sum option from at&t of 359,000 and need some kind of income from it,? http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it Buy Annuities and Annuity Information Sat, 24 Jul 2010 03:06:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: kapn http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it/comment-page-1#comment-1238 kapn Sat, 31 Oct 2009 02:34:59 +0000 http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it#comment-1238 Your screwed.....you can't afford to retire.......your insurance premiums will kill you......you need a financial guy.....NOW.......your 6 years from social security and 9 years away from Medicare......you will have to work or starve........I hope you know when you take your 359K out they will tax the @hit out of you.....Its income.......so your 359 will be about 251K insurance will cost you $500 a month ........ if you can get it.......get financial help now........even if you get a 10% return on 215K .....and you won't...thats only 2K a month.........25% to insurance..........so now you can live on $375 a week....minus income tax....good luck........<br><b>References : </b><br> Your screwed…..you can’t afford to retire…….your insurance premiums will kill you……you need a financial guy…..NOW…….your 6 years from social security and 9 years away from Medicare……you will have to work or starve……..I hope you know when you take your 359K out they will tax the @hit out of you…..Its income…….so your 359 will be about 251K insurance will cost you $500 a month …….. if you can get it…….get financial help now……..even if you get a 10% return on 215K …..and you won’t…thats only 2K a month………25% to insurance……….so now you can live on $375 a week….minus income tax….good luck……..
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]]> By: Susie T http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it/comment-page-1#comment-1237 Susie T Sat, 31 Oct 2009 01:44:59 +0000 http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it#comment-1237 If you have no pension and need to live on the income from $359,000, be prepared for a shock. You can't get SS till 62, and then you are penalized for taking it early. so the lump sum is going to sustain you for at least 6 years. A safe withdrawal rate of 4% of $359,000 is only $14,360/year. You probably can't live on that, so even if you "round up" to $20,000-25,000, you will probably need a second job to get you to SS. Another problem is health insurance. If you don't have retirement health insurance paid for by your employer, figure on 10-20% of your income going for health insurance. National average for a family is $12,000+, not sure what single is, but that's a good percentage of your $14,360. How are you going to cover health care until age 65 Medicare? (We are paying 25% of our income now, on COBRA, for 2 people.) You need to find out how much your age 62 vs age 66 SS would be, then input some numbers into a retirement calculator at fidelity.com, vanguard.com, or troweprice.com. See what the numbers say before you make any decisions. Don't invest in anything you don't understand. As the past year has shown, there's nothing wrong with cash, esp. shortterm. Always keep a good cash cushion of 6-8 months living expenses in the bank or credit union. Annuities have high fees upfront (typically 7% of what you invest). Mutual funds from the above 3 companies are "no load", no fees up front; these companies have funds with good longterm records (see Morningstar.com or your library for more info). The less money you have (and $359,000 is NOT a lot of money if you're going to live another 30-40 years), the more conservative you need to be. A sound principal for longterm is 1/3 cash/CDs/money markets, 1/3 bonds, and 1/3 stock mutual funds (for growth). This canhelp you sit out downs in the stock market while letting some funds grow to counter longterm inflation. Good luck! Don't be intimidated by all this advice. Start with the retirement calculators and base your decisions on numbers, not wishful thinking.<br><b>References : </b><br>Financial planner for 25 yrs, retired at 62 with 25% of income going for health ins. premiums.... If you have no pension and need to live on the income from $359,000, be prepared for a shock. You can’t get SS till 62, and then you are penalized for taking it early. so the lump sum is going to sustain you for at least 6 years.

A safe withdrawal rate of 4% of $359,000 is only $14,360/year. You probably can’t live on that, so even if you "round up" to $20,000-25,000, you will probably need a second job to get you to SS.

Another problem is health insurance. If you don’t have retirement health insurance paid for by your employer, figure on 10-20% of your income going for health insurance. National average for a family is $12,000+, not sure what single is, but that’s a good percentage of your $14,360. How are you going to cover health care until age 65 Medicare? (We are paying 25% of our income now, on COBRA, for 2 people.)

You need to find out how much your age 62 vs age 66 SS would be, then input some numbers into a retirement calculator at fidelity.com, vanguard.com, or troweprice.com. See what the numbers say before you make any decisions.

Don’t invest in anything you don’t understand. As the past year has shown, there’s nothing wrong with cash, esp. shortterm. Always keep a good cash cushion of 6-8 months living expenses in the bank or credit union. Annuities have high fees upfront (typically 7% of what you invest). Mutual funds from the above 3 companies are "no load", no fees up front; these companies have funds with good longterm records (see Morningstar.com or your library for more info).

The less money you have (and $359,000 is NOT a lot of money if you’re going to live another 30-40 years), the more conservative you need to be. A sound principal for longterm is 1/3 cash/CDs/money markets, 1/3 bonds, and 1/3 stock mutual funds (for growth). This canhelp you sit out downs in the stock market while letting some funds grow to counter longterm inflation.

Good luck! Don’t be intimidated by all this advice. Start with the retirement calculators and base your decisions on numbers, not wishful thinking.
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Financial planner for 25 yrs, retired at 62 with 25% of income going for health ins. premiums….

]]> By: Rudy http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it/comment-page-1#comment-1236 Rudy Sat, 31 Oct 2009 01:01:59 +0000 http://www.annuitypurchaseblog.com/lump-sum-annuity/i-have-decided-to-take-the-lump-sum-option-from-att-of-359000-and-need-some-kind-of-income-from-it#comment-1236 I'm not even going to try on tell you how to invest the money. But I would say to pick up at least a part time job. Not only will it give you a little more income but will also keep you active. Also it keeps you busy so you don't spend as much. Good Luck<br><b>References : </b><br> I’m not even going to try on tell you how to invest the money. But I would say to pick up at least a part time job. Not only will it give you a little more income but will also keep you active. Also it keeps you busy so you don’t spend as much.

Good Luck
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