Pension benefit lump sum

Discussion in 'Pfizer' started by Anonymous, Aug 22, 2014 at 9:28 AM.

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  1. Anonymous

    Anonymous Guest

    I was offered 35K$ in lump sum payment for a 900$/m lifetime annuity starting at 65 (worked at Pfizer for roughly 10 years and left because of the stench of the corporate parasites).

    Adjustment for inflation: estimated at 2.1% per year for the next 25 year. I am 40 yo now and will retire at 65. That makes it 510$ in todays value.

    The standard right now for buyback throughout corporate america is the average lifetime expectancy of 77 yo for male. That translate to 510/m = 6120$/y x 12 years = 73K$.

    Yeah, you can make up the difference by investing. But that calculates to 8-9% annualized return. If you want to take on the role of investment manager to alleviate some the Pfizer's responsibility, knock yourself out.

    So essentially, Pfizer is trying to buyback its liability for 50c on the dollar.

    What a bunch of A-holes. When you think that they gave 188 million dollars for McKinnel as a reward for being the worst CEO in history, it just makes me sick. The Pfizer pension fund is one of the most underfunded in the US (70% funded?), and yet they can spare a tenth of a trillion box to buy Astra?

    I said FU, and I hope that I either live to 100 yo, or they go bankrupt. Whichever comes first, I am happy with that.

    Don't settle for this BS and elect: "no action" on www.pfizer.retirementelection.com.
     

  2. Anonymous

    Anonymous Guest

    Take the lump. You may not live to 65. Pfizer may disappear, and you'll wind up with 0.
    Take the lump, invest in safe stuff and walk away.
     
  3. Anonymous

    Anonymous Guest

    I guess it depends on your age.
     
  4. Anonymous

    Anonymous Guest

    Do not take the lump sum. Let Pfizer continue to carry the risk - rather than assuming it yourself. In any case, unless you are in poor health, your retirement should be planned to age 90
     
  5. Anonymous

    Anonymous Guest

    I did the math on what I was offered and decided to not take the lump. I would rather have them carry the risk. Besides if it was a good deal for us why would they even offer it?!?
     
  6. Anonymous

    Anonymous Guest

    Please read details
     
  7. Anonymous

    Anonymous Guest


    The risk is yours not Pfizer. You could die. Pfizer could go under. Pfizer could do a lot. Take the lump sum and invest it wisely.
     
  8. Anonymous

    Anonymous Guest

    Absolutely. Get a good LPL guy and invest. MLPs (like EMES, HCLP, CLMT and RIGP) are paying nice dividends and growing rapidly. By the time you retire, you'll have a wad. Don't take it? They'll invest your money and you'll get the short end of the stick.
     
  9. Anonymous

    Anonymous Guest

    If you live just to 68, you win. That lump sum is a joke.

    You can also elect to have a spouse or another keep getting your pension payments, albeit reduced, for the remainder of their lives.

    Even if Pfizer underfunds and goes bankrupt, the federal government will cover your pension in full via an insured trust fund, unless your pension surpasses a certain amount that is way above your $900 per month. You can thank GW Bush and the Repubs for that. Fortunately, this fund hasn't been stolen by Congress yet like the Social Security fund.
     
  10. Anonymous

    Anonymous Guest

    You made the right choice. Pfizer offered this for a reason to benefit themselves by saving money in the long run. Hang on to it unless you think you will die in your sixties.
     
  11. Anonymous

    Anonymous Guest

    I took the lump and bought a car. Terrible investment, I know. But it is fun as hell to drive. Figured Uncle Pfizer could buy me at least one REAL car while I was alive still.
     
  12. Anonymous

    Anonymous Guest

    IF is the operative word. You are on the highway everyday.... Feel safe from all the idiots texting , talking on the phone, getting a blow job , etc. while driving? Cancer, heart attack? Get hit by a bus? Take lump and tell Pfizer to go to hell.
     
  13. Anonymous

    Anonymous Guest

    eyeroll
     
  14. Anonymous

    Anonymous Guest

    People are short sighted if they take the lump sum.
     
  15. Anonymous

    Anonymous Guest

    You are being short sighted if you think no one should take it. if you can get 1-2 million in a payout you're going to walk away from that???? You'd rather take $5,000 a month? A conservative portfolio will pay you more than that, it will grow, and you will be leaving the principle to your heirs. If that's short sighted sign me up.
     
  16. Anonymous

    Anonymous Guest

    Even if it's half that or even 1/4, still better to take the lump. Run your own life. Social security is your fixed income, the lump can grow for you and your heirs. Too many fees in annuities, too much fine print. And, again, life is a gamble. I want all of my money where I can see it....as well as my wife and kids. When I croak it's guaranteed to go where I want it to go. I wouldn't trust Pfizer or any of their cohorts with anything.

    You want a fixed income....and fixed is the operative word....go for it. I, too must be short-sighted.
     
  17. Anonymous

    Anonymous Guest

    Don't forget to deduct taxes from both options. 35k?...I'd do the same. 350k take the lump.
     
  18. Anonymous

    Anonymous Guest

    It makes no sense to not take the lump...you could croak in a year, or be sick enough to croak and need the money to stay alive....plus especially right now the discount rate is so low...hire a CFP if you are stupid; they can match annuity and give you much more flexibility
     
  19. Anonymous

    Anonymous Guest

    It makes no sense to not take the lump...you could croak in a year, or be sick enough to croak and need the money to stay alive....plus especially right now the discount rate is so low...hire a CFP if you are stupid; they can match annuity and give you much more flexibility
     
  20. Anonymous

    Anonymous Guest

    Re: Penion benefit lump sum

    Any worthwhile CFP would recommend that you take the annuity unless you are in several specific circumstances that do not apply to most people.