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Hi,
I'm new to the discussion, and here's my story. I'm 53, single, debt free except for the mortgage. I currently make about $100K/yr.
I've just been offered an ER package due to downsizing at work. There's a pension component but only about $25K/yr, plus I have a 401K with about $400K in it. Health insurance is included in the ER package at the employee rate (currently $100/mo for a decent BCBS group plan).
I'm trying to decide if I can afford to take the ER.
I can buy a lifetime annuity with the 401K money, or just leave it to grow for later retirement needs and take it out later, or I can withdraw it in equal monthly payments. I'm not particularly good at managing investments, so the annuity is tempting, but interest rates are so low right now and I'm worried about inflation in my "real" retirement years--my gut tells me I should save the 401K money for later. (My parents/grandparents lived into their 80s, so I could be around for another 30-40 years.)
I don't think I can live on the pension alone, so I'll have to tap the 401K--or else work part time or in another job for a few more years.
I'm considering selling my place, paying off the mortgage, and buying a smaller place for all cash. The mortgage is really my biggest cashflow worry. Is this a good strategy?
Anyone have some advice for me? I really need it. Is this at all possible?
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