Greetings to all,
I recently attended a retirement seminar sponsored by our pilot's union. Much to my surprise I discovered that I qualify for a full 25 year retirement this fall (2011) versus my planned exit for next fall (2012). This is due to my hire date and how a year of service is determined (fiscal year versus calendar). Here are the numbers. I am 56 now. My non-cola pension pre-tax will be 110,000 this year or 114,000 if I wait. The difference is due to an additional year of early retirement penalty If I go this year. My state doesn't tax defined benefit pensions. I've run the nums through turbotax and it appears my fed tax liability will be approx 20K. There is subsidized health care (same buy up plan we now have) but will still cost 800-1000 mo versus the 200 we pay now. 730K in 401K, 70K in IRA. Expenses: approximately 105K yearly
(this is a very generous budget with no change in lifestyle). Home and RV paid off this fall. Two college bound teenaged girls still home. Presently 35K each in their 529s. My plan all along was to use my final year to fatten up the 529s and lay away cash for a retirement excursion in 2013 for whole family (14 people) that will cost around 40K. If I do go this year,any shortfalls could be covered by non-penalty withdrawals from Vanguard 401K since I'm already past 55. Now I know the simplistic answer is to look at the nums and say, "expenses are covered; good to go", but I'm hesitating. I need to make a decision within the next month or so as to maximize my vacation buy back if I decide to leave this year. Leaving the house for another week on the road has become excruciating. Thoughts or angles or simply "wise counsel" I haven't considered are appreciated.
Ken
I recently attended a retirement seminar sponsored by our pilot's union. Much to my surprise I discovered that I qualify for a full 25 year retirement this fall (2011) versus my planned exit for next fall (2012). This is due to my hire date and how a year of service is determined (fiscal year versus calendar). Here are the numbers. I am 56 now. My non-cola pension pre-tax will be 110,000 this year or 114,000 if I wait. The difference is due to an additional year of early retirement penalty If I go this year. My state doesn't tax defined benefit pensions. I've run the nums through turbotax and it appears my fed tax liability will be approx 20K. There is subsidized health care (same buy up plan we now have) but will still cost 800-1000 mo versus the 200 we pay now. 730K in 401K, 70K in IRA. Expenses: approximately 105K yearly
(this is a very generous budget with no change in lifestyle). Home and RV paid off this fall. Two college bound teenaged girls still home. Presently 35K each in their 529s. My plan all along was to use my final year to fatten up the 529s and lay away cash for a retirement excursion in 2013 for whole family (14 people) that will cost around 40K. If I do go this year,any shortfalls could be covered by non-penalty withdrawals from Vanguard 401K since I'm already past 55. Now I know the simplistic answer is to look at the nums and say, "expenses are covered; good to go", but I'm hesitating. I need to make a decision within the next month or so as to maximize my vacation buy back if I decide to leave this year. Leaving the house for another week on the road has become excruciating. Thoughts or angles or simply "wise counsel" I haven't considered are appreciated.
Ken
