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<blockquote data-quote="vantexan" data-source="post: 2632427" data-attributes="member: 24302"><p>Let&#039;s look at 5%.&nbsp; If a courier retires with a two thousand a month traditional pension payment, he&#039;d need almost half a million invested with a 5% return to achieve that.&nbsp; Is FedEx offering half a million lump sums?&nbsp; Oldfart said the lump sum they&#039;re offering is equal to about 5 years worth of what his monthly would be.&nbsp; $125k or thereabouts?&nbsp; About the only thing offering more than 5% currently that I&#039;m aware of is the stock market if you don&#039;t count junk bonds.&nbsp; There are safer stocks like utilities but generally you have to count on a long stretch of stock gains to grow your account considering you are drawing off it monthly.&nbsp; A major correction stops you in your tracks and can significantly reduce your equity.&nbsp; Which means you either do without or sell off stock to maintain your lifestyle.&nbsp; Much wiser to take that lifetime monthly payment.</p></blockquote><p></p>

[QUOTE="vantexan, post: 2632427, member: 24302"] Let's look at 5%. If a courier retires with a two thousand a month traditional pension payment, he'd need almost half a million invested with a 5% return to achieve that. Is FedEx offering half a million lump sums? Oldfart said the lump sum they're offering is equal to about 5 years worth of what his monthly would be. $125k or thereabouts? About the only thing offering more than 5% currently that I'm aware of is the stock market if you don't count junk bonds. There are safer stocks like utilities but generally you have to count on a long stretch of stock gains to grow your account considering you are drawing off it monthly. A major correction stops you in your tracks and can significantly reduce your equity. Which means you either do without or sell off stock to maintain your lifestyle. Much wiser to take that lifetime monthly payment. [/QUOTE]

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