I don't post very often, but truly enjoy reading everyone's opinions and differing perspectives. I would also like to say that I am blessed to be in the situation I find myself. So here goes.
I can retire in about 8 months at age 51, with a pension from a solid company. I know, I know..... Anyway, retiring without the buyback wil provide 57% of my current income.
I have an option to buy back additional service and retire in March of next year. The buyback would cost around $130,000 and would provide 70% of my current income. The money for the buyback would come from 401k with no tax hit and no management fee. The annuity is not COLA. We would have another $150,000 in 401k to help deal with inflation. Would not touch that until age 59 1/2. We have some money in stocks to bridge the inflation gap between now and 59 1/2.
We could live happily ever after with either option, but I am leaning heavily toward the buy back. The pension annuity is joint, 20 year certain on both options.
As I see it, I am pulling $130,000 from stock market investment to purchase additional monthy income for life. The $130,000 buyback is purchasing twice the annuity I could get on the street (immediateannuity.com).
So what do ya'll think ? Thanks in advance for you comments.
I can retire in about 8 months at age 51, with a pension from a solid company. I know, I know..... Anyway, retiring without the buyback wil provide 57% of my current income.
I have an option to buy back additional service and retire in March of next year. The buyback would cost around $130,000 and would provide 70% of my current income. The money for the buyback would come from 401k with no tax hit and no management fee. The annuity is not COLA. We would have another $150,000 in 401k to help deal with inflation. Would not touch that until age 59 1/2. We have some money in stocks to bridge the inflation gap between now and 59 1/2.
We could live happily ever after with either option, but I am leaning heavily toward the buy back. The pension annuity is joint, 20 year certain on both options.
As I see it, I am pulling $130,000 from stock market investment to purchase additional monthy income for life. The $130,000 buyback is purchasing twice the annuity I could get on the street (immediateannuity.com).
So what do ya'll think ? Thanks in advance for you comments.