skipro3
Recycles dryer sheets
I am retiring at the end of this year at age 56. I have a total right now of 39 years of service credit and have the option to buy 5 more. My final pension has several options but the one I'll choose is the one that pays the same amount through-out both my and DW's lives. The pension has a COLA of up to 5% including any years I choose to buy. The final pension for me and DW will be $69,550 before taxes the first year without the 5 year purchase and $79,500 with the 5 year purchase.
The cost is $131,000 for the 5 years. In a nutshell, $131,000 buys me $10,000 a year for the rest of my and DW's lives starting at age 56 with a 5% (max) per year COLA built in.
My retirement includes my medical, dental and vision. I have zero debt. I own my home free and clear and no other loans either. I can pay for this purchase with my 401K as a transfer. If I do, I'll have $250,000 left between my 401K and 457 accounts. I will receive $1,900 a month in 6 years at age 62 from Social Security and DW will receive $500 a month as well.
I am very conservative with investments having seen many market swings and not having the stomach to watch my money fluctuate like that, it's all in Wells Fargo Stable Return Fund M right now earning about 3% last year and about 1.75% this year.
So, does that sound like a good deal?
P.S. I asked this question several months ago, but I now have much more solid #'s for my calc's so I didn't want to dig the old one back up again.
Thanks!!!
****EDIT****
I want to add; my current budget is $4,500 take-home a month average and that covers 100% of my expenses. I imagine it will remain roughly the same, maybe drop a little but I wouldn't count on it.
The cost is $131,000 for the 5 years. In a nutshell, $131,000 buys me $10,000 a year for the rest of my and DW's lives starting at age 56 with a 5% (max) per year COLA built in.
My retirement includes my medical, dental and vision. I have zero debt. I own my home free and clear and no other loans either. I can pay for this purchase with my 401K as a transfer. If I do, I'll have $250,000 left between my 401K and 457 accounts. I will receive $1,900 a month in 6 years at age 62 from Social Security and DW will receive $500 a month as well.
I am very conservative with investments having seen many market swings and not having the stomach to watch my money fluctuate like that, it's all in Wells Fargo Stable Return Fund M right now earning about 3% last year and about 1.75% this year.
So, does that sound like a good deal?
P.S. I asked this question several months ago, but I now have much more solid #'s for my calc's so I didn't want to dig the old one back up again.
Thanks!!!
****EDIT****
I want to add; my current budget is $4,500 take-home a month average and that covers 100% of my expenses. I imagine it will remain roughly the same, maybe drop a little but I wouldn't count on it.
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