Hi all,
Long time lurker . . . first time poster! Seeking your expert advice.
I have the opportunity to retire at the end of 2010, at age 51, after 30 years as an instructor at a public University. I would receive a $52K annual pension (with a 3% COLA) from a single-life annuity. (At this point, that would include paid health insurance, though the state legislature may change that down the road.) I have not contributed to Social Security.
I am single, healthy . No dependents. No debt. I own a modest $150K home in a very affordable community.
I’ve been living (comfortably but somewhat frugally) on about $30K/year . . . with the rest going to savings. Retirement plans include traveling, spending more, and at some point likely going back to work part-time in a new career!
I have approx. $330K in an IRA, 403(b), etc., which I don’t plan to touch until I have to. I have $170K in a CD which I plan to use for a house / condo in case I would to move to a "less affordable" locale after retirement. I have another $85K CD for "emergencies".
So . . .
Long time lurker . . . first time poster! Seeking your expert advice.
I have the opportunity to retire at the end of 2010, at age 51, after 30 years as an instructor at a public University. I would receive a $52K annual pension (with a 3% COLA) from a single-life annuity. (At this point, that would include paid health insurance, though the state legislature may change that down the road.) I have not contributed to Social Security.
I am single, healthy . No dependents. No debt. I own a modest $150K home in a very affordable community.
I’ve been living (comfortably but somewhat frugally) on about $30K/year . . . with the rest going to savings. Retirement plans include traveling, spending more, and at some point likely going back to work part-time in a new career!
I have approx. $330K in an IRA, 403(b), etc., which I don’t plan to touch until I have to. I have $170K in a CD which I plan to use for a house / condo in case I would to move to a "less affordable" locale after retirement. I have another $85K CD for "emergencies".
So . . .
- Other than the fact that I can’t imagine not teaching every quarter, anyone see any red flags here? My state government is in pretty sad financial shape. While the single-life annuity would be Constitutionally protected, I’m eager to lock this in next year before they move to change the retirement options to my detriment.
- I have the option to take a $600K lump sum, with no health insurance, in lieu of the single-life annuity payout. Anyone think I should consider that route?