Search found 78 matches

by supernova72
Wed Jun 29, 2016 11:20 am
Forum: Personal Finance (Not Investing)
Topic: HELOC for emergency and when you would use it
Replies: 38
Views: 5464

Re: HELOC for emergency and when you would use it

I did this exact thing about a year ago and glad I did it. My FN advisor suggested I establish a HELOC since 95% of my retirement funds are tied up in a 401K and a pension plan.

I "shot for the moon" on the request ($200K) and got approved for $150K. I needed to tap into it recently for a purchase but hope to pay it off in the next two months. My home is valued at $550 and I still owe $120K :| Wishing I could wave a magic wand and pay it off but about to enter retirement "involuntarily" so weighing my options there.
by supernova72
Tue Jun 21, 2016 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: One more mortgage payoff thread...
Replies: 47
Views: 6448

Re: One more mortgage payoff thread...

Been debating this for a long time and now it seems more urgent than prior. I was recently downsized (link below) so potentially "retiring" and having a mortgage does not seem like a great plan cash flow wise. Decisions, decisions!

viewtopic.php?f=2&t=192769
by supernova72
Wed Jun 08, 2016 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Intens wrote:Congratulations!

With those financials, you are all set.

I left Megacorp about four years ago, and now realize I most likely won't be able to get back in since I am in about the same age group as you.
One thing that was made clear is if I take the lump sum severance (vs continued income) I wave my rights to be called back. I'm OK with that.
by supernova72
Tue Jun 07, 2016 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Indefinite Period of Travel - What to do with $400k? [Home]
Replies: 17
Views: 2921

Re: Indefinite Period of Travel - What to do with $400k?

My 2 cents on where to go visit: Have friends doing the Thailand thing. One full-time, one 6 months a year. I've been there twice and maybe you have too. A beer is $2. AU will be a very different experience cost wise (higher of course). If you are a single male it can be overwhelming the attention a western male gets. Everything you read is true + some. Pattaya is an adult playground.

I stayed in Chang Mai and my 'nice' hotel (A/C, breakfast, nice staff, gym) was $29 a night. No kidding.
by supernova72
Tue Jun 07, 2016 11:40 am
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

tigermilk wrote:While not as old, my father-in-law had a stroke which eventually resulted in early retirement, He never adapted, was never joyful, and died a few years later. My father was forced to retire early due to layoffs (aerospace sector, IT manager) and has absolutely loved it. My mother still worked for a few more years and was very envious. She's finally caught up to his happiness of not having to go to work everyday. Enjoy the ER and look at it as a blessing.
Thanks for the positive thoughts!
by supernova72
Tue Jun 07, 2016 11:39 am
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Spitfire wrote:Are you a SPEEA employee?
Not SPEEA (Engineering) so not represented no. IT is non-union.
by supernova72
Tue Jun 07, 2016 11:38 am
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Watty wrote:
supernova72 wrote: Yea, I realize running is hard on the body but I have not yet found an alternative that provides the same intensity in the same timeframe.
One of the changes in retirement is your perspective on time changes and you end up being in less of a hurry. I have never been a runner but since I have retired I have gotten into a routine of usually going out for 2+ hour walks on local trails four or five times a week and I miss it when my schedule or the weather doesn't allow me to do it for several days in a row.

It is not for everybody, including myself, but a friend of mine hiked the Appalachian Trail after he retired at the age of 62.
True, true. I hope to get back into my regular Yoga routine as well.
by supernova72
Tue Jun 07, 2016 11:37 am
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Congrats on landing safely after the layoff accident ( unless you think it is actually a good thing :-) ). I hope and wish to be in the position of not worrying about having a job and only working because I want to. I do not have a pension but am thinking of looking for a job with one. My question to you is if you have thought about taking the lumpsump for the pension instead of monthly $3100. Wouldn't that be a better option to have that large sum of money in your control - could be at least $700,000 or even greater depending on their calculations I looked at the lump sum option but for me it doesn't really pencil out too well. As you are most likely aware the company was required to use the IRS mortality and interest rate factors (3 tier...
by supernova72
Mon Jun 06, 2016 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Greentree wrote:Consulting when you don't absolutely need the money is great (from what I've observed, not me yet). You take the jobs you want, tell the ones you don't want that you are too busy and it is a world of difference from working in megacorp. It might take a year or two to build up but then you'd have income when you want it. Though it doesn't appear that you need to work at all.
Thanks. It was more about me not being very prepared to not be working vs. the money part. I've been at this for 30+ yrs without a gap in employment. I would love to work for a smaller place where I can experience a new environment and staff.
by supernova72
Mon Jun 06, 2016 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Silly, minor thing re your workout routine. If you run for cardio, I would consider walking for cardio instead. I pounded away as a runner for eighteen years, then the shin splints started, I got more aches and pains ... and I switched to power walking. (I tried bicycling but after coming close to being greased by cars a couple of times, I dropped the biking thing.) Just a thought. (I know folks who've run for years and they are now getting hips replaced. Walking is easier on joints.) Yea, I realize running is hard on the body but I have not yet found an alternative that provides the same intensity in the same timeframe. I still do local fun run races but the shorter ones like 5K's vs. half marathons (did about 20 of them). I'm faster than...
by supernova72
Mon Jun 06, 2016 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Congrats on landing safely after the layoff accident ( unless you think it is actually a good thing :-) ). I hope and wish to be in the position of not worrying about having a job and only working because I want to. I do not have a pension but am thinking of looking for a job with one. My question to you is if you have thought about taking the lumpsump for the pension instead of monthly $3100. Wouldn't that be a better option to have that large sum of money in your control - could be at least $700,000 or even greater depending on their calculations I looked at the lump sum option but for me it doesn't really pencil out too well. As you are most likely aware the company was required to use the IRS mortality and interest rate factors (3 tier...
by supernova72
Mon Jun 06, 2016 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Hikes_With_Dogs wrote:From what I can tell, congrats are in order!!!
Thanks for the positive words!! I know I could have saved more and wish I were debt free but then again I also wanted to live a bit too. :happy
by supernova72
Mon Jun 06, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Sorry to hear about your surplussing. My only tip is to sign up for unemployment when your severance is complete. Some people skip this step. I would probably take the summer off and look for another job in the fall. I wouldn't want to end my career on a layoff. But being able to ER and in a hot job market means you can decide your next move. The power of being a Boglehead. :-) Thanks...after looking at the options and talking to the WA state UE office it would be best to take the lump sum severance and apply to UE (they say that can be done). If I take the continued income severance I can't get UE. Having said that I can't draw my pension until UE runs out. Decisions! I would choose the lump sum severance, regardless of the UE vs pension ...
by supernova72
Mon Jun 06, 2016 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Question about your pension: Can you delay taking it to let it grow? Or is the figure you gave fixed? You might want to explore that and see if/how a growing pension would factor into your decisions. Best of luck. My old company is doing a lot of this right now. Three former colleagues lost their jobs last year and three more are going this month -- and it was a small group. Interestingly all 6 qualified for early retirement. High tech industry, so no pension and no retiree healthcare, but better severance and COBRA. Good question on pension: It was frozen at the end of 2015 so the growth is pretty small by waiting ($8 a month). I'm in an IT group within a non IT megacorp (aerospace type work). I'm fortunate to have my retirement benefits ...
by supernova72
Mon Jun 06, 2016 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

I know it's disorienting and kind of maddening to be laid off. Been there. But you'll shake it off quickly I promise. Sure you can keep working, but you're a millionaire plus you have a $3100 a month guaranteed income, plus you'll probably have additional income from social security in another decade. You can do whatever you want! Congrats. I don't know where you live but $535K seems like a lot of house for a single guy. You could sell it (or lease it) and travel the world for a year on your severance check. Just an idea. :D Oh, on the house I live in Seattle WA proper so that is pretty much an entry level home (no kidding!). My house value increased by 10% in 2015. I really want to keep the house so at this point not thinking of downsizin...
by supernova72
Mon Jun 06, 2016 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

campy2010 wrote:Sorry to hear about your surplussing. My only tip is to sign up for unemployment when your severance is complete. Some people skip this step.

I would probably take the summer off and look for another job in the fall. I wouldn't want to end my career on a layoff. But being able to ER and in a hot job market means you can decide your next move. The power of being a Boglehead. :-)
Thanks...after looking at the options and talking to the WA state UE office it would be best to take the lump sum severance and apply to UE (they say that can be done). If I take the continued income severance I can't get UE.

Having said that I can't draw my pension until UE runs out. Decisions!
by supernova72
Mon Jun 06, 2016 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

NMJack wrote:Megacorp sucks. Been there twice.... :(

Hang in there and be thankful you made it out financially alive. :sharebeer
Thank you. I'm trying not to focus on the layoff part and what opportunities are ahead of me yes.
by supernova72
Mon Jun 06, 2016 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

I get retiree medical and can either do a low deductible plan at $46 a month and $30 co-pays OR a high deductibable plan with $1300 deductible and no co-pays. Still figuring out which is best. Will have about $4K in my HSA by the time I 'retire'. Even though it feels weird it's been one heck of a run and I am calling the move forward plan phase II . Cheers. How healthy are you? Consider the past several years of medical expenses when selecting your plan. If you have been healthy the high deductible plan probably would be best. Do you have the option to change to the alternative plan in the future if desired? Are either of the plans PPO? Your stated annual expenses are 60k. Does this include your mortgage payment of $XXXX and income taxes o...
by supernova72
Mon Jun 06, 2016 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

Re: After 30 yrs at Megacorp my IT job was surplussed...

Thanks---I should have included I can withdraw from 401K without 10% penalty. I wasn't planning on drawing so early so that is why I was considering some PT consulting work---or winning the lottery :)
by supernova72
Mon Jun 06, 2016 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: After 30 yrs at Megacorp my IT job was surplussed...
Replies: 52
Views: 10317

After 30 yrs at Megacorp my IT job was surplussed...

Somewhat anticipated but still internalizing what my next steps are. I work in an aerospace industry in an IT organization. Megacorp (160,000 employees). IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg. It feels weird since I've never been "laid off" before. About me: 55 yrs old (can ER at 55) single retiree medical (options are below) 750K in 401K (can draw at 55 without 10% penalty) pension (non cola) at $3100 a month (can draw after my layoff benefit ends in 6 months). I can also take a lump sum on the six months pay. expenses are 60K a year. Pension is now frozen so the growth for delaying drawing it is pretty small (like $8 a month). After final check...
by supernova72
Wed May 11, 2016 11:58 am
Forum: Personal Consumer Issues
Topic: One Week "Sabbatical"
Replies: 43
Views: 6229

Re: One Week "Sabbatical"

Have you ever been to Seattle WA? I live here and fishing is very popular and July is mid 70's with ZERO humidity. One of the better places to taste local craft beer as well. There are litterally dozens of breweries within a 10M radius.

http://www.bing.com/images/search?q=sea ... ORM=HDRSC2

http://www.washingtonbeerblog.com/
by supernova72
Mon May 02, 2016 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Preferred
Replies: 53
Views: 9910

Re: Chase Sapphire Preferred

I've had this card about 4 months and love it. Besides what's been stated in previous posts about 50K miles etc I like the fact that almost all dining is 2X points. I eat out a lot (I know) and over 4 months have earned almost 75K points. I'm spending about 3K a month just to be fair about how I'm earning.

Plus when you go to book a flight if you use your miles they give you a 20% add meaning my miles area already worth $900 towards travel.

I've had other travel cards and have already cancelled one of them and will soon cancel the 2nd one. Plus when you call the number someone literally answers the phone and says "Hello Mr Olson". No menus to wade through...
by supernova72
Thu Apr 28, 2016 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Pension buy outs ???
Replies: 34
Views: 5396

Re: Pension buy outs ???

I asked a similar question and got some very insightful replies on the actual calculation. My situation is a bit different but you can see this post towards the end explaining the calculation for me. I had no idea there are three "tiers" used on the interest rate(s).

viewtopic.php?f=2&t=183805&p=2799968#p2799968
by supernova72
Tue Mar 08, 2016 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC paydown vs. 1st Mortgage paydown. Which first?
Replies: 5
Views: 573

Re: HELOC paydown vs. 1st Mortgage paydown. Which first?

bigred77 wrote:Not that it's a huge deal but you could probably refinance both into a 15 year mortgage and cut your interest sate to 3% or less. Just keep paying what your currently paying and your payoff date would happen even faster.

You could also look into a 10 year refinance if terms are worth it.
Good point. I went through the analysis of a 3.25% refi on a 12 yr "No Fee" loan and keeping the overall payment the same. It saved me 2 months which was surprising to me. Maybe it's because I've already taking two yrs off the loan?
by supernova72
Tue Mar 08, 2016 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC paydown vs. 1st Mortgage paydown. Which first?
Replies: 5
Views: 573

Re: HELOC paydown vs. 1st Mortgage paydown. Which first?

zeeke42 wrote:HELOC first, for two reasons:
1. They're currently the same rate, but the HELOC can go up and the mortgage cannot.
2. Flexibility. If you pay down the HELOC, you can draw again if you need emergency cash. Paying down the mortgage doesn't change your cash flow until you refi or pay it off.
Thanks for the feeback and good point on the emergency cash part!
by supernova72
Tue Mar 08, 2016 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC paydown vs. 1st Mortgage paydown. Which first?
Replies: 5
Views: 573

HELOC paydown vs. 1st Mortgage paydown. Which first?

Hello, I'm torn on which loan to paydown first between a recent HELOC (used car purchase) and my first mortgage. The scoop: Mortgage: 4%, 15 yrs, $207K (refied in July of 2011) balance is now $128K Home value $500K Been paying approx $600 a month extra principle the last three years (pre car purchase) HELOC: 3.99% variable $26K balance 2014 M235i ($37K value wholesale) Guessing it's depreciating about 10% per year. Since the car is depreciating and the house is appreciating (Seattle WA) should I apply the entire $600 to the HELOC? I just can't figure it out for whatever reason. I'm currrenly splitting it 50/50 between the two loans. Someone will probably ask why I'm doing a HELOC for a car. Good question. I like the flexibility actually and...
by supernova72
Sat Mar 05, 2016 1:52 pm
Forum: Investing - Theory, News & General
Topic: classic cars vrs S&P 500 1986-2016
Replies: 12
Views: 2197

Re: classic cars vrs S&P 500 1986-2016

I've been guilt of justifying keeping a 1972 Nova as the only vehicle I have that is gaining value right now :D

I paid $600 in 1989 for it. Numbers matching 350 V-8 car. To be fair, I stopped keeping track of the $$ I put into it about 10 yrs ago ($10.5K). However the fun factor of cruising has value as well (it's a driver not a show car). The biggest drawback is needing it in a garage which takes up one spot.

Car is insured for $18K which is close to fair market value for a non-SS 72 Nova.

Couldn't figure out how to add a pic of it here. Technically challenged :oops:
by supernova72
Sun Feb 21, 2016 1:56 pm
Forum: Personal Investments
Topic: Anyone own KHC (Kraft Heinz) stock?
Replies: 10
Views: 4580

Re: Anyone own KHC (Kraft Heinz) stock?

Tanelorn wrote:
supernova72 wrote:I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
You can deduct their merger processing fee from the proceeds. Adjust the line item on your 8949 accordingly.
Thanks for the tax tip. I will deduct accordingly then. Feeling bad for the folk who are waiting on Wells Fargo. My statement for TDA was available the 3rd week of January.
by supernova72
Sat Feb 20, 2016 12:06 pm
Forum: Personal Investments
Topic: Anyone own KHC (Kraft Heinz) stock?
Replies: 10
Views: 4580

Re: Anyone own KHC (Kraft Heinz) stock?

I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
by supernova72
Mon Feb 15, 2016 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Decision! was: Can I retire in 2017?
Replies: 53
Views: 10986

Re: Can I retire in 2017?

Similar stats as you but live in a higher cost area (Seattle WA) and still have a mortgage ($155K).

Age 55
pension $37K annual (April 1st 2016 start). This plan in frozen but will earn some interest credits
$700K in 401K (70/30 mix)
Retiree Medical (no premium but $1300 deductible).
SS at 62 will be $20K annual
Expenses $62K (with mortgage)
Firecalc says 93%.

Trying to find a way to payoff mortgage so keep going back and forth on "Can I retire in 2017?" or even 2016. :?:
by supernova72
Sun Feb 14, 2016 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: What is your decline in Net Worth as of today?
Replies: 96
Views: 16185

Re: What is your decline in Net Worth as of today?

2016 YTD is down about 6.5% (401K). 70/30 mix. This excludes future (fingers crossed) DB pension income which will be 50% of my retirement income.
by supernova72
Sun Feb 14, 2016 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

Supernova72 here. Wow that is fantastic and thanks so much for that. The only part I didn't follow is how you got to the annuity rate of 191.4? I might have missed that in your note above. My true DOB is 10/31/1960. So I guess I would really be 55 5/12 as of 4/1/16. My bad on that. Amazing analysis you did. Cheers! Good question , I'll outline how I did it and leave it to you, programmer, and Dave to collaborate and crunch the numbers for validation ; you may want to get a book that discusses life contingent annuities - "Life Contingencies" by C.W. Jordan is excellent and may still be in print and then I would suggest that you get a hold of the 2016 417(e) mortality rates and then build a mortality table ; you'll also need the 41...
by supernova72
Sat Feb 13, 2016 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

Supernova72 , with the additional information that you sent via PM I was able to come within $119 of your lump sum benefit of $472,207.21 ; here's a brief summary of the calculation : Benefit Commencement Date (BCD) : 4/1/2016 Your Age on BCD : 55 7/12 The plan's stability period for lump sum determination : the calendar quarter The plan's look back for lump sum determination : 4 months Code Section 417(e) assumptions : December 2015 IRS segment rates, i.e. 4 months before the 2nd quarter of 2016 and 2016 applicable mortality . When Boeing converted to a CB plan in 1999 , i.e. the PVP from a Traditional DB , the accrued benefit , i.e. Heritage benefit in the TDB on that date was kept separate and indexed as your wages increased similar to ...
by supernova72
Thu Feb 11, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

Additionally, heritage company pension benefits features, which were unique to various pension plans prior to being rolled into the PVP, are being extended to all active PVP participants. This extension is only applicable for benefits accrued Jan. 1, 2014, through Dec. 31, 2015. As a result, you may see some of your PVP features improve slightly due to the adjustments being made to standardize the heritage pension benefits and comply with IRS rules This is helpful SNova , it's talking about plan features which are probably different than calculation factors - anyway could you provide your 12/31/14 account balance and your 2015 pay credit - my thought is that with this information we might be able to see how the $472,000 was determined . SN...
by supernova72
Thu Feb 11, 2016 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

The adoption by Boeing of the PVP back in '99 shows up on an internet search but not so with whatever happened at the beginning of 2014 ; does anyone have any information ? Dave , Nova, Programmer ???? What’s happening to my pension? A1. First and foremost, you will keep all pension benefits you earn through Dec. 31, 2015. Between now and then, your PVP benefits will continue to accrue as they have, and the cash balance portion will grow with interest credits until you begin receiving your benefit. As of Jan. 1, 2016, Boeing will shift fr om providing pay-based credits in the PVP defined benefit plan to making automatic contributions each pay period to your VIP savings account through a new component called VIP+. This new retirement benefi...
by supernova72
Wed Feb 10, 2016 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

Soon2BXProgrammer wrote:
supernova72 wrote: Senior moment here. Does "quit early/take 55: lump sum is decent option" mean one would leave pre-55?
Yes, if you leave 1 day before 55 you are hugely penalized, unless it is due to layoff, if layoff you can leave i believe 7 years early, and not have the penalties in the annuitization formula. <- please fact check this if it applies to you.
Got it. I did the same calculation when I was pre-55 yrs old. That penalty for me huge too. And yes there is something special about getting within 7 yrs of 55 too regarding layoff. I have that in a .ppt presentation if you are interested just PM me.
by supernova72
Wed Feb 10, 2016 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

In the scenarios that where calculated above, there was both a Pre2014 benefit and a post 2013 benefit. They both are converted from credits into an annuity. I don't have access to a pre 1999 heritage account. The difference between pre2014 and post2013 is how they get converted to an annuity. pre2014 = credits divided by annuity conversion factor divided 12 (payments) post2013 = credits + unearned future interest until you turn 65 divided by annuity conversion factor divided by 12 times early retirement factor pre2014 quit early/take 55: 485.44 quit/take 55: 661.96 quit/take 65: 1,078.27 post2013: quit early/take 55: 192.41 quit/take 55: 427.57 quit/take 65: 427.57 the side affect of this is one post2013 has a huge benefit of in early ret...
by supernova72
Tue Feb 09, 2016 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension lump sum option today...

davewi wrote:My benefit statement refers to the Pension Value Plan and only shows one number (with a caveat that it includes the "heritage benefit"). Although I have 23 years with the company, I did leave for a while and returned to the mother ship in 2001.
OP here. Meant to respond earlier to this. I could not see my two numbers (Heritage, PVP) until I "saved" the report to my saved reports section of the pension section on the company website. It's a bit hard to find the first time but give it a go. The saved .pdf files had quite a bit more detail in it which I found very interesting.
by supernova72
Tue Feb 09, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Just for clarity there was a buyout offer for ex employees in 2014. I believe it used a 6% discount rate in calculating the NPV of the annuity, from a packet that i saw. Those ex employees where given one chance to take the buyout. the offer to current employees is slightly different they have to work past Apr 1 2016 to be eligible for a lump sum option. So unless the news article is brand new, it is probably talking about the old buyout offers. However the ancillary facts about it are probably true... That may be. The fact is that some pension plans, mostly in the public sector, have offered a lump sum or pension offer (or a blend) for a long time. Those plans have tended to be "fair", in that the lump sum can buy the pension. M...
by supernova72
Tue Feb 09, 2016 10:43 am
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Did a Boeing pension search - seems like they established a CB plan, i.e. the PVP in '99 to consolidate the various plans that came under their umbrella through mergers and acquisitions - and so OP should have an A + B situation like I outlined in my earlier post ; the following link gives a brief summary of the PVP , take note of the question " How is Boeing's Plan Diffferent" : http://www.boeing.com/assets/pdf/companyoffices/empinfo/benefits/news/archive2003/savingsPINchange3_03.pdf OP and Davewi both have enough years with Boeing to have had a pre-PVP benefit - and OP if you were in the PVP then you were in a CB plan with a legacy benefit not a Traditional DB ; and it seems to me that both OP and Davewi should have gotten an e...
by supernova72
Mon Feb 08, 2016 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

My pension would be $3,077 based on an April 1st 2016 retirement date (non-COLA). The pension lump sum option offered is $472K Based on a lifetime annuity value of $630K (immediateannuity.com) this looks to be a 25% haircut. So even though they need to use IRS actuarial tables and IRS "417E" pension buyout interest rates it appears the Megacorp can then discount it even further. What makes you think they are discounting even further ? what lump sum do you think they should be offering you ? also could you provide your accrued benefit payable as a life annuity at the plan's normal retirement age . I'm basing this strictly on the math and the $$ it would take to go out on the market and buy an annuity to get the same income stream....
by supernova72
Mon Feb 08, 2016 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

OP here. Don't know who our Megacorp uses for consulting. I'm sensing some on this thread think I'm making up the numbers which I"m not. I'm going to post one output from the tool so you can see what we see. The 2nd section is a new addition explaining some of the elements behind the "new" lump sum option for existing employees. This is the first time it's been offered ever to existing workforce. Below assumes a retirement date of 4/1/2016. At 65 it would be $4005 a month. SECTION A If you would like to receive both your pre 2014 benefit and post 2013 benefit as one form of payment, you should make one election from Section A only. Form of Payment Benefit Total Lump Sum Payment (one-time) $ 472,207.21 (on 4/1/2016 or 55 yrs,...
by supernova72
Mon Feb 08, 2016 10:43 am
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Please read this: https://www.bogleheads.org/wiki/Lump_sum_vs_pension It is a road map on how to decide. (I wrote it, or at least the original version.) And then, consider the point: It is irrelevant how Boeing arrived at what to offer you. You don't have to recalculate it or check their math. There is an offer on the table. What should you do? There is only one use case you have to understand, your own. The same is true of when to claim Social Security. It can be infinitely complicated, but much less so as it applies only for your own situation. L. Thanks for the link. On the calculation and the math behind it I was more curious than anything. I don't see the harm in understanding how 30+ of my employment benefits are being offered up. Wh...
by supernova72
Mon Feb 08, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Leeraar wrote:A Google search on

boeing pension buyout

gives some very interesting results.

L.
OP here. There have been two in the past but for "former" employees. My subject line should have called this an "option" vs. buyout. Oops.
by supernova72
Mon Feb 08, 2016 10:24 am
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Just for clarity there was a buyout offer for ex employees in 2014. I believe it used a 6% discount rate in calculating the NPV of the annuity, from a packet that i saw. Those ex employees where given one chance to take the buyout. the offer to current employees is slightly different they have to work past Apr 1 2016 to be eligible for a lump sum option. So unless the news article is brand new, it is probably talking about the old buyout offers. However the ancillary facts about it are probably true... Good point soon2B. That offer in 2014 was indeed for former salaried employees who had not yet started drawing on their pension (40,000 folks). It was a on-time deal. Like we've discussed this one is an on-going offer starting April 1 and is...
by supernova72
Sun Feb 07, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

I sent you a PM with some additional information you might find useful. sorry for the confusion, about hybrid/cash/traditional, the plan is ridiculously complex based on mergers and acquisitions, etc. i suppose you'd call it a "hybrid" employee's do not receive annual benefit statements. they can log in to an online tool and see an estimate of the pension based on what scenario they want to take it. thanks , just curious if you happen to know the name of the consulting/actuarial firm that handles the account ? I would guess it's one of the biggies and I'm sure they have the programming expertise to put together a powerful tool ; this topic was my career and so I have a pet interest but also concede that the benefit structure can ...
by supernova72
Sat Feb 06, 2016 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

ubermax wrote:OP, did you dig out your benefit statement from last year showing your account balance in the CB plan ?
This is a traditional DB pension plan. No account balance. As stated above by soon to be ex programmer we can see our estimated monthly income stream with different options and as of 2/4/2016 we can now see a lump sum option.
by supernova72
Sat Feb 06, 2016 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Soon2BXProgrammer wrote:Can you please go into the tool and estimate the pension at your 65th birthday, i believe it will give you a different lump sum number?
OP here. Good question. That monthly lifetime pension estimate at 65 is $4,005 (vs. $3,077 at 55---actually April 1st 2106 so 55 yrs 5 months).
by supernova72
Fri Feb 05, 2016 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

Not sure what step I skipped now. On my last attempt I tried using those three tiers of IRS interest rates and discount it back. BUT I was not sure how to take into account the age 65 thing. Following those steps above not sure where the mortality fits in? I actually discounted what I would get at 65 back to now (I'm 55). Then I applied that to the IRS mortality rates and interest rates by using this table for rates and 27.6 yrs for mortality (for me). https://www.irs.gov/Retirement-Plans/Minimum-Present-Value-Segment-Rates Three Tiers S1 is 1-5 yrs S2 is 6-20 yrs S3 is 20+ (or 7.6 for me) But this came up to ~ 525K. Its a two step process to calculate the present value of a deferred annuity. 1. Calculate the present value of the payment st...
by supernova72
Fri Feb 05, 2016 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: My Megacorp offered a pension lump sum option today...
Replies: 87
Views: 14556

Re: My Megacorp offered a pension buyout today...

OP, you say the plan was frozen at the end of 2015 ; what was your frozen benefit on the freeze date ? While this doesn't answer your question to calculate the value. There are no new contributions after the end of 2015. However, the plan will still accrue interest until the person turns 65 (unless still working), or takes the pension. The benefit calculation will continue to increase if you forecast changing the start date, based on the interest calculations. OP here: Thanks for jumping in soon2bxprogrammer. The way it was explained to me we still accrue interest credits but the "aged based" credits stopped at the end of 2015 (per freeze). What is still a mystery to me how it's calculated. I understand the IRS interest rate and ...