I must not be expaining this right but here I go again. If I am receiving an annual pension this year of $25,000 but will rise every year at the rate of inflation, how does this pension fit into a portfolio or net worth? For example, if next year inflation increases by 3%, my pension will rise to $25,750. If I'm trying to figure out my finacial portfollio, what value do I place on this pension? I'm 46 now. Hyperthetically, if I live until 78, (average age for men when they die) add 2% a year for inflation this pension will have been worth 1.28 million dollars over it's life time. What value would a financial advisor put on this pension. There, I can't explain it any better than that. Come on financial people, lets put our thinking caps on.. Thank you
2007-03-22
09:31:53
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5 answers
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asked by
Al R
1