I’m 65, & Disabled in a wheelchair. I’m filling out the paperwork to start collecting my pension. The Company I used to work for has a split formula for setting up your pension payments.
Part 1 RCA Pension Benefit
Life with 5yr Guarantee. (Automatic Payment Method)
149.20 a month, with a Lump-Sum Option of 29,347.70
Part 2 GE/Trans Ops Pension Benefit
Life with 5yr Guarantee. ( Automatic Payment Method)
618.79 a month. ( No Lump-Sum Option )
Part 3 Personal Pension Account
Life with 5yr Guarantee. (Automatic Payment Method)
30.81 a month, with a Lump-Sum Option of 5,800.10
There is also an RCA Alternate Pension Benefit Option that would essentially combine all the Automatic Options into 1 payment each month of 821.08
I’m leaning towards the Lump-Sum for Part 1, & rolling the Automatic Payments in Parts 2 & 3 together, giving me a monthly payment of 649.60, & 29,347.70 to invest.
Currently, I only have my disability income of 1999.00 a month; no frills, certainly, but survivable for 10 yrs so far.
(I lost my leg in a Hurricane)
The extra 649.60 a month would absolutely help my day-to-day life, but I think being able to invest a significant amount of money (to me) of 29,347..70 could be more helpful to me than an additional 149.20 a month.
(Possibly Bitcoin, I Bonds? High-Yield Fidelity Funds?)
I have no family, no heirs. I live simply, no cars,
no expensive habits, no drugs, smoking, gambling, etc…
I have a track record with Credit Karma of paying every single bill 100% on time for more than 10 yrs.
I would like to ultimately buy the house I rent.
(Approx. 300k) Because I’m single,& Disabled, part of the 1040EZ form states that I do not owe any taxes, unless I were to make more than 50k in a year. I’m not sure how a Pension would count for taxes. Any Advice?
My dh gets 1227 a month a month in SSDI. We haven’t filed taxes since he started getting his disability over 10 years ago. We were how ever able to purchase a house with it in April. We got in with zero money down and NON VA. Definitely look into buying your own home. Why pay on someone elses nest egg when you can be paying on your own! We were renting a not even 650 sq ft apt in Colorado Springs for 840 a month..It NOW rents for over 1100 a month. The home we bought is 1632 sq ft, 3 bedrooms and 2 bathrooms, built in shed, fenced yard. Our total mortgage payment…414 a month. Yep! we are happy campers!
Have you applied for SSDI also?