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Peter's avatar

Larry, A practical question re: (A) Cash Pension (fixed payment/mo) vs. (B) Annuity via US Treasuries (20-30 yrs). Option (A): My Cash Pension would pay out monthly ($300k total) like annuity @ 3.5% (myself + spouse after my death). My option (B) would be to transfer to IRA as lump sum, and wait till 20 or 30-yr US Treasuries reach > 4.5% yield (Eo2022 ?) and buy them. I am looking at Deu. Bank's projections for Q4'22 (J. Reid) and they project US FED Funds rate = 3.625%. Based on that, can we expect long term US Treasuries (20/30 yrs) to be > 4.5% ? . Would option B more viable - and if yes, would MaxiFi be able to model that (or any other annuity calculator vs. US Treasuries?). Would appreciate your comment how to go about it. PW

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Robert's avatar

Government providing inflation indexing or other inflation-adjusted assets/returns for seniors sounds good, but who trust the government to use true inflation rates when they are so heavily in debt? They'll just fudge the rates as they already have.

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