stephenson
Thinks s/he gets paid by the post
- Joined
- Jul 3, 2009
- Messages
- 1,610
Hi All,
Wife and I both 55 ... live in northern Virginia and considering (early) retirement before company's basis for computation of lump sum (2/3 or time with one company that was bought by the second company which does not offer a lump sum) changes from 30 year Treasury to corporate bond rate.
Current planning from company is: 100% Treasury through end of 2009, then changes in 2010 to 40% Treasury/60% corporate bond rate, then changes in 2011 to 20 Treasury/80% corporate bond rate, then final change in 2012 to 100 corporate bond rate basis.
But, another option is to wait four years ... numbers below generally represent Dec 2009 and Jul 2014 dates.
Retirement income from:
1. Navy retirement ... $30K/$33K a year
2. Company lump sum ... $380K/$430K
3. Company based 401K ... $400K/$500K
4. Company based deferred income account ... about $200K/$400K
5. Company based retirement ... $20K/$30K a year
6. Mine and wife IRA .... $200K/$240K
7. Non-retirement based savings ... $500K/$550K
We owe $250K on two houses worth about $1.5M. Total purchase basis of the two houses is about $550K.
Several factors make the decision more complex than I had expected, especially the change in the basis for lump sum computation - the difference in basis appears to be about 1-1.5%. And, while I would like to take advantage of the lower percentage (higher basis) Treasury computation for the lump sum, I don't to do anything silly financially.
One child is 25 and self supporting and the other is in college through 2011 - we don't know where either will end up geographically. We have lived all over the place and don't really have a place we can call historic home any longer. We both like being on the water (duh ... Navy), but would prefer to have two small houses rather than a large one. Our tastes are pretty moderate, but we would like to travel some more.
We are spending about 25% or our time talking about what to do! Lots of research and I have spent significant time studying options and alternatives.
I appreciate all the comments I have seen on the site - some great, neutral advice from folks who have given retirement, especially early retirement some serious thought.
Thanks!
Wife and I both 55 ... live in northern Virginia and considering (early) retirement before company's basis for computation of lump sum (2/3 or time with one company that was bought by the second company which does not offer a lump sum) changes from 30 year Treasury to corporate bond rate.
Current planning from company is: 100% Treasury through end of 2009, then changes in 2010 to 40% Treasury/60% corporate bond rate, then changes in 2011 to 20 Treasury/80% corporate bond rate, then final change in 2012 to 100 corporate bond rate basis.
But, another option is to wait four years ... numbers below generally represent Dec 2009 and Jul 2014 dates.
Retirement income from:
1. Navy retirement ... $30K/$33K a year
2. Company lump sum ... $380K/$430K
3. Company based 401K ... $400K/$500K
4. Company based deferred income account ... about $200K/$400K
5. Company based retirement ... $20K/$30K a year
6. Mine and wife IRA .... $200K/$240K
7. Non-retirement based savings ... $500K/$550K
We owe $250K on two houses worth about $1.5M. Total purchase basis of the two houses is about $550K.
Several factors make the decision more complex than I had expected, especially the change in the basis for lump sum computation - the difference in basis appears to be about 1-1.5%. And, while I would like to take advantage of the lower percentage (higher basis) Treasury computation for the lump sum, I don't to do anything silly financially.
One child is 25 and self supporting and the other is in college through 2011 - we don't know where either will end up geographically. We have lived all over the place and don't really have a place we can call historic home any longer. We both like being on the water (duh ... Navy), but would prefer to have two small houses rather than a large one. Our tastes are pretty moderate, but we would like to travel some more.
We are spending about 25% or our time talking about what to do! Lots of research and I have spent significant time studying options and alternatives.
I appreciate all the comments I have seen on the site - some great, neutral advice from folks who have given retirement, especially early retirement some serious thought.
Thanks!