Hello, I'm not an accountant, but thought I'd come here to ask a question that I can't seem to find the answer to. It deals with retirements plans and the future value of money.
I am evaluating two job offers and trying to decide which one make better sense from a retirement standpoint.
Company A offers a 9% Direct Contribuiton (DC) plan and a Direct Benefit (DB) plan which will work out for me to be $114,000/year when I retire in 23 years. The $114,000 is not adjusted for a COLA.
Company B offers a 15% DC plan only.
My question is, does company B's extra 6% in the DC plan get me more money in retirement than the $114,000 annuity?
In other words, how much money do I need extra in a DC plan to draw down $114,000/year, every year without touching the principal?
I am evaluating two job offers and trying to decide which one make better sense from a retirement standpoint.
Company A offers a 9% Direct Contribuiton (DC) plan and a Direct Benefit (DB) plan which will work out for me to be $114,000/year when I retire in 23 years. The $114,000 is not adjusted for a COLA.
Company B offers a 15% DC plan only.
My question is, does company B's extra 6% in the DC plan get me more money in retirement than the $114,000 annuity?
In other words, how much money do I need extra in a DC plan to draw down $114,000/year, every year without touching the principal?