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Signed papers for "early retirement"
01-25-2006, 06:52 AM
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#1
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 52
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Signed papers for "early retirement"
I am 56 and signed papers for "early retirement recently. Hope to learn a lot here like others. Worked for previous employer for 35 plus years but have had to become caregiver for DW.
Healthcare is a surity for both, plus her Medicare
She has SS disability and I a fed. retirement.
Willl be getting $25K to RE from a work environ I won't miss.
Any ideas on where to put the $25K?
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Re: Signed papers for "early retirement"
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01-25-2006, 07:03 AM
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#2
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Recycles dryer sheets
Join Date: Aug 2004
Posts: 74
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Re: Signed papers for "early retirement"
Just wanted to welcome you and say congrats on your early retirement!
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Re: Signed papers for "early retirement"
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01-25-2006, 07:24 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Re: Signed papers for "early retirement"
Welcome. Depends on if you think you need the 25k anytime soon or not. If you need it within the next 3 years, I would just stick it in a cd. If not, I would* allocate it according to your overall investment mix. Good luck!* 
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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Re: Signed papers for "early retirement"
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01-25-2006, 08:09 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,321
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Re: Signed papers for "early retirement"
If the $25K you mentioned is the early out bonus, I think there is mandatory 20% withholding that will come out of that. So I think you are only going to see $20K. I would recommend you put it into a good money market mutual fund like Vanguard Prime while you figure out what to do with it.
Grumpy
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...you can check out any time you like, but you can never leave...
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Re: Signed papers for "early retirement"
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01-25-2006, 09:03 AM
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#5
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Re: Signed papers for "early retirement"
Welcome to the board, Gpax.
That $25K is a nice amount to put into a money market & CDs for any expense surprises as you and your spouse adapt to your changing lifestyles.
You'll probably be paying taxes on the $25K and you may owe estimated taxes if nothing is witheld from that $25K lump sum. So rather than buying one huge CD you may want to break it up into smaller CDs that you can tap without big early-withdrawal penalties.
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
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I don't spend much time here— please send a PM.
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Re: Signed papers for "early retirement"
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01-25-2006, 09:31 AM
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#6
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Moderator Emeritus
Join Date: Jul 2005
Posts: 2,811
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Re: Signed papers for "early retirement"
Welcome Gpax. I am happy for your ER but I am sorry you wife is having health issues. I know many people that have been caregivers for spouses and it is a demanding job all my itself.
Hang in there. It is tough.
__________________
Work? I don't have time to work....I'm retired.
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Re: Signed papers for "early retirement"
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01-25-2006, 11:30 AM
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#7
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Recycles dryer sheets
Join Date: Nov 2004
Posts: 283
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Re: Signed papers for "early retirement"
Welcome Gpax and congratulations on your retirement!* When I retired (three years ago) I got the bonus and 6 weeks of vacation for the largest paycheck ever - with the largest tax withheld.*
I'll second the other posters and suggest putting that cash in a money market account (somewhere like Vanguard.com or Fidelity.com) and also avoid insurance salesmen.* You'll probably feel like you're skipping school or ducking work for a while but you'll get over that.
JohnP
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Dad's Dream; to have enough money someday to live the kind of life my wife and kids do...
Life is what happens while you are making other plans... John Lennon...
the more you look, the more you see...
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