Everyone at work talks about the lump sum timing with regard to interest rates, timing, etc. What are your suggestions?
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August rates are out now. Another historic low! Check your lump sum boys, it will be the biggest ever. Great time to retire!!
@3wcnz, I concur. That would be a big mistake. Most of these comments are from young, naive employees without much financial experience or wisdom. You don't acquire wisdom from the internet, a relatively new entity in the big picture.
Great opportunity!
If you are anywhere reasonably close to retirement <3 years, choose EOI, then take your money and run. Seriously, the future looks very bleak indeed. 2020 will not be kind.
This could be the last chance to cash out of the plan.
Yes, I actually have. I do not rely on pensions nor social security for retirement, although they would be nice to have. Thanks for caring, though!
Just wait until Chevron changes the rules of its Retirement Plan. I bet you haven’t factored that into your thinking, right?
Epic rate cut. This is amazing, folks.
Yes, Epic Fail. Try again. Make better decisions and you won't be relying on getting bailed out of the hole that you've dug for yourself.
Let’s see how segment 1 drops the next six months. Could be epic!
It's amazing that anyone would still consider the lower value lump sum buyout, especially in times like these, unless you are truly desperate and dug yourself into a hole. C'est la vie.
It is amazing that segment 2 rates (which are the key driver for the lump) have fallen fast 1.5 points the last 15 months to historic lows. The Trump dividend. People who retired in 2018 are punching themselves now!
Mortgage rates are at a 50 year low, so you can add a fourth node to the good news. Retire with fat severance, max lump with low rates , buy dirt cheap stocks, and buy your dream house at 3% interest. Bada bing.
Yes, that would definitely be the holy grail, @3qezv+10mNB-ng, for those with investing expertise, a large nest egg built up because of that expertise, a nice fat severance, and enough past financial success to not have to settle for a lump-sum buyout to settle debt and receive a fat monthly pension check. The holy grail of retirement income. And no need to worry about market swings. There are others who are depending on the lump sum and trying to"time the market" for a retirement budget to pay for their necessities, a fools errand. I feel bad for those types with that poor of a plan. But I suppose a poor plan is better than no plan.
Yes, Agree on that also. The trifecta would be EOI, retiring with a healthy 401k, severance and also monthly pension with no debt or reason to have to settle for less with a buy-out. Couldn't agree more.
I agree it is the holy grail trifecta. Let's just hope Chevron can get us paid out before the virus is conquered and the market recovers.
It's times like these when you learn that Life is sweet for those who chose the annuity, but sour and tanking for those who chose the lower value buyout. And those who more wisely chose the mathematically superior choice, the monthly annuity, will be living large and high on the hog as the lump sum sufferers sweat out these type of downturns. A downturn like this is not what you want when you are in retirement and do not have many years left to recoup your losses. I feel very bad for those who chose the pathetic lump. I suppose that they had no choice, had bills to pay. Life is sweet for those who planned well and are financially astute. Not for those who think that their gains will be in the future, when they should be spending their nest egg instead of trying to build it.
The recession will push rates ever lower, boosting the lump. This may be a historic market low for investing! A corona gift. The trifecta of low interest rates, cheap stocks and a severance package. Life is sweet.
If you can live on social security comfortably then the annuity is just a bonus.
You are correct, sir. This is one of those times when a steady monthly pension check would be a Godsend.
EOIs are icing on the cake. Anyone who wants to cash out their lump sum at historic low interest rates plus a year of salary just has to ask. Congratulations, winners!
ouch! Looks like someone was triggered and their tiny little head exploded. Apparently you were right, @3dhcc, you reap what you sow.
@3dhcc Wrong you M.O.R.ON. Read my response again you sorry A.D.D. illiterate simian. When Management treats its people like sh!t, it’s sh!t that the company will sow. That’s what I commented. Understand now, you simpleton?
No, @3axoq, just like I do it at work when management treats us all like sh!t. Don’t be obtuse. The unflushed dump was only a message. I respect my home, so I don’t such things there. The office, though, has become a totally different thing lately. Treat people like sh!t and you’ll reap sh!t. That’s my motto.
It will be interesting to see how the re-org plays out through the year. I guess if we can get the package late enough in 2020, it will be possible to manage the tax impact by receiving some of it in 2021. Nice.
I left a large lump sum in the toilet on the 14th floor of HOU150 today. To optimize my sentiment on the corporate CIP multiplier, I did not to flush, but stuck a wad of paper towels under the open bathroom door so the aroma would permeate the corridor.
Most of us in Houston do all you describe and more, as do our bosses. No big deal, man.
They’re not so hard to come by @35vwo. Just start showing up to work late and leaving early to go home, take longer lunch breaks, call in sick or say you have a dentist appointment at least twice a month, start missing promised deadlines or asking for extensions to work deliverables, go to the bathroom more often and don’t return for hours. All these things are mere examples of how to assure yourself a good chance of getting a severance package.
I would love a nice parting package but they seem hard to come by.
Good for you @2Xdrn. Just don’t step on a banana peel and get yourself laid off.
Agreed! Just locked in a mortgage at an amazing rate. Lowest in ages.
As most of you know, interest rates will be lower March 1. Ka-ching!
If you have 55 points or more you may be able to get your age 65 benefit as early as age 60, not 52. You can retire (stop working) at age 52 but if you claim the benefit before age 60 it will be discounted. The table is in the retirement plan.
75 points? Man you’ve away for too many years. It’s 90 points now, Sherlock.
How many points? 75? Getting the unreduced lump sum is a sweet deal.
@2Cffc, If you have enough points, 25+ years of service should do it, the earlier retirement discount factor does not apply - see Retirement Plan docs for details. I got my full lump sum (age 60 as you call it) at age 52. Also, $2MM payouts are not as rare as you may think, especially in this extremely low interest rate environment.
Remember that at least for petrotecs the worker bee PSGs now go to 28. $2 million is a slam dunk at that wage.
- 2netw, Lump sum is also subject to your age at retirement (severance). Remember there’s an early retirement discount factor of 5% per year before age 60. Also, I’m very suspect about the so-called line employee or average employee getting a $2 million lump sum amount, no matter if they have 25+ years of service. It’s not impossible, but you’re talking about very few and very highly paid people at the PSG 25 and higher pay grades.
Could be a severance package coming to sweeten the lump sum. Fingers crossed!
I don’t think you understand the math very well. Line employees can easily get a $2MM lump after 25 years. I know many who have done just that. Just takes years and a decent ending PSG. Nowhere near VP level. VP lump is double that and up.