Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
With the increased free time on my hands (to worry) from early retirement and learning from financial posts here, I developed a long term concern for my financial well being and wanted input from anyone willing to offer. As a by product from a cola'd teacher retirement system, I was a typical (at least from my presonal experience) person. Meaning, they take "x" amount out each month and at "x" amount years, I will get "x" amount of money yearly with a cost of living increase. Its protected by law, so no problems, right? I noticed this year they invoked the "fine print' that said if inflation is under 2% no colas has to be given (Im not eligible for my first one until, Jan. 2012) then they cited it would save the system $110 million dollars. Now I've read the system is about 80% prefunded down from 100%, 10 years ago and they are looking to whack the new teachers with a lower retirement package, with increased contribution rates to help shore up the system. If you were me (I'm 46) would you be worried for the long term future, and would you do anything financially about it?
Background: My pension is a little under 75K, before taxes, a year and after 6 months being retired, I find myself saving about $600 a month from it. Only having about 60K in assests (I would have had more, but I purchased 4 years with $85,000, so I could retire earlier), I obviously am just counting on living off my monthly pension ( I sound like a welfare person now). My child support ends in 4 years, lowering my expenses $600 a month then (college is taken care of). No one has threatened to cut current retirees pensions, yet, but even if something as little as not giving cola's could have a dramatic effect on my income down the road if I live to a normal life expectancy. Any general thoughts from anyone? I'm worried that maybe I've been too niave in just "trusting the system". Or is it having too much time on my hands to imagine a financial crisis down the road? Any thoughts appreciated!
Background: My pension is a little under 75K, before taxes, a year and after 6 months being retired, I find myself saving about $600 a month from it. Only having about 60K in assests (I would have had more, but I purchased 4 years with $85,000, so I could retire earlier), I obviously am just counting on living off my monthly pension ( I sound like a welfare person now). My child support ends in 4 years, lowering my expenses $600 a month then (college is taken care of). No one has threatened to cut current retirees pensions, yet, but even if something as little as not giving cola's could have a dramatic effect on my income down the road if I live to a normal life expectancy. Any general thoughts from anyone? I'm worried that maybe I've been too niave in just "trusting the system". Or is it having too much time on my hands to imagine a financial crisis down the road? Any thoughts appreciated!