It
was an interesting gambit recently when Obama threw out the cap on total 401k
and IRA dollars. What was even more interesting was the rational for the $3
million amount. They converted it to an annuity worth $205,000 per year and
that was the basis for the $3 million. I don’t think many people were paying
attention to how much money it takes to generate $205k per year, but they
should. Using income rates of about 2% to 6% (range of living off
dividends-interest only to complete conversion to annuities), gives a much more
realistic valuation of retirement savings than focusing on the big lump sum
sitting in the bank account....Continue
Thanks,
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