tag:blogger.com,1999:blog-5465015914589377788.post1644100696543538573..comments2020-08-08T09:50:46.232-04:00Comments on Michael James on Money: Pension Rip-offMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5465015914589377788.post-31621580759418987232017-03-30T13:05:53.238-04:002017-03-30T13:05:53.238-04:00@GCAI: If you take $5363/month, rising with infla...@GCAI: If you take $5363/month, rising with inflation, and discount each payment by the probability of having died (that's where the mortality tables come in), and then discount each payment by 4.1% plus inflation per year, the total of all payments works out to $1M.<br /><br />If you take a stream of $3010/month payments and increase them by inflation plus 4.1% per year, discount each payment by the probability of having died, and then discount them by inflation plus 4.1% per year, the total is $1M.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-27101986987872418182017-03-30T12:29:06.929-04:002017-03-30T12:29:06.929-04:00A little confused - how does $5363/month come out ...A little confused - how does $5363/month come out to 4.1% of 1M ? and for that how does $3010/month work out to 4.1%?<br />If you could clarify that would be great - thanks. GCAIhttps://www.blogger.com/profile/04720461167804813752noreply@blogger.com