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Ask Paula: Should You Buy Real Estate in Today’s Economy?
Afford Anything
The Pension Calculation for a Couple Away From Retirement
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The way pensions are calculated depends on how far away he is from retirement. If she's comfortable living on $80,000 today, and there's still 15 years away from retirement, if we use the rule of 72, prices double every 18 years, that 80,000 she's comfortableliving on right now is $160,000. The pension number for her now may not be that significant of a number where it will continue to multiply for him. Every state is different; familiarize yourself with community property versus equitable distribution.
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