Effen Posted January 3, 2011 Posted January 3, 2011 Often when I talk to attorneys about QDROs and present value calculations they talk about someplace that they can get the value of an annuity calculated for around $100. After I explain that they generally get what they pay for, they opt for the cheap calc. So now I am wondering, is there realy a company who specilizes in present value calculations for defined benefit QDRO situations and will do them for around $100? If so, what is their name? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
david rigby Posted January 4, 2011 Posted January 4, 2011 Just a hunch: the $100 "quote" was the attorney's wish, not a real experience. While it's not appropriate to discuss fees here, the $100 value seems too low, by a lot. That would not cover the actuary's time/effort/due diligence before providing a PV calc. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Jim Chad Posted January 4, 2011 Posted January 4, 2011 I have seen people look at a "benefit statement" Then decide on some interest rate that sounds reasonable to them and go to a math tables book to get the present value factor. Multiply it on a calculator and there it is. It takes about 5 minutes. I know enough about DB plans that I would have no confidence in this. What can I tell them, in layman's term, about what they are missing?
Effen Posted January 4, 2011 Author Posted January 4, 2011 Thank you for the feedback and I agree with all of it. Maybe the cheap qdro calculation company was just a legend, like Keyser Soze, but I swear I heard it really exists. Then again, maybe they went under since they weren't charging enough. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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