Hello all, I'll will be retiring in 2019 from police work, total of 31 years. Not knowing what course to take with my retirement funds. Im currently in a 7 year D.R.O.P. plan, investing in total equities managed by the city I work for. At the end I have several options, take the lump some from my drop account ( roughly about 500K) and take the lump some from my pension (roughly about 800K). Or when I separate from the city, keep my monthly pension checks comming (roughly 5800 a month) and place my drop funds in a IRA or other type to draw off the interest annually.
Other factors come to play. Age at retirement 53, I have two children they will be 13 and 10. My mortgage will be 200K@ 5.1%.. I would like to be free of the mortgage when I retire however not too keen on paying the big penalties and the higher tax braket I will be in to uncle sam...
Im basically right now cash poor but looking forward to retirement to get out of cc debt as well. I also would like to invest in a college fund for my children but cant afford it now, waiting for retirement.
Im very worried about combining the two lump sums and investing in the market putting my entire nest egg out there. I would be constantly be worried about losses.
I would welcome the advice and greatful...I have about 6 years left and its around the corner so to speak..
Thank you!
Gene
Other factors come to play. Age at retirement 53, I have two children they will be 13 and 10. My mortgage will be 200K@ 5.1%.. I would like to be free of the mortgage when I retire however not too keen on paying the big penalties and the higher tax braket I will be in to uncle sam...
Im basically right now cash poor but looking forward to retirement to get out of cc debt as well. I also would like to invest in a college fund for my children but cant afford it now, waiting for retirement.
Im very worried about combining the two lump sums and investing in the market putting my entire nest egg out there. I would be constantly be worried about losses.
I would welcome the advice and greatful...I have about 6 years left and its around the corner so to speak..
Thank you!
Gene