Aug 10, 2023Liked by Daniel May, CFP®

Daniel out here with the content we NEED. I have been struggling with this for 2 years as a military employee. It’s wild to me how little content there is on pensions. I know they are rarer than ever, but a good 1/5 still have them and need to know how it affects them.

I took the know your number course and it made it clearer to me, but I’m glad to see it validate the approach I had. I simply came up with a monthly number of 100% my income and deducted my pension payments (40%) and then calculated my savings rate based on 60%.

Ultimately, I’m a mutant and still opted to do 22% into TSP and max IRAs but knowing I can slow down later or just bless people even more during retirement gives me peace. Or maybe I retire early. YOLO right lol 😎

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Aug 10, 2023·edited Aug 10, 2023Liked by Daniel May, CFP®

Thank you for the article Daniel. I'm a federal employee and will receive a pension. I read Grumpus Maximus' book "The Golden Albatross," but still find pensions can be very complex. I have looked at several plan documents for myself and my wife of current and potential employees to measure the worth of their pension. When you add in trying assess how likely the fund will stay solvent then it adds in additional complexity.

I've found that mapping out my own retirement and wanting to have the option of retiring at 50 that I will most likely receive a deferred pension much later. I am also of the firm belief that if the money were invested in a defined contribution plan instead of the defined benefit then it would be worth much more. I initially thought I was getting a great deal with the pension, but as I have grown older I favor the defined contribution much more.

Again, thank you for the article.



Going to add in a link to my free blog if that is okay:


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