I'm tired of running the numbers, Im out in July 07

[dm]

We met with the wife's pension advisor and was able to buy 3 years of time toward her pension plan, for $67,000 . She currently has 22 years in so this will put her at 25 years and makes her eligible for a slightly reduced early out deal. She plans to work one more year for some reason. Her pension will be 54k and has a cola. There is approximatly 250k in my 401k and we also have around 100k at TD Waterhouse.

She currently teaches a class at the local college, 3 hours a week/semester and will probably add one or two when she quits her day job. I suppose she really wont be retired but she does enjoy it. And it will bring in another 10k to 15K.

I figure we need $30,000 to scrape by but actually spend closer to $60,000.
We have no debt and a 6 year old house that we should probaby downsize sometime in the future. We are currently doing a better job tracking our expenses so we can see what we are actually spending our money on.

I'll be 50 in May and the wife is 46. I hope to leave the 401K money alone until I'm 60 and hopefully with the wifes part time job and the 100k we will be fine. If not we will just have to cut back because I'm not going back to work!

 

[Helena]

Her pension will be 54k and has a cola.

54k a year ?

What's her profession ?

 

[dm]

54k a year ?

What's her profession ?

She is a Middle School Principal.

 

[Callie]

Wow - if I had a 54K pension I would be ER'd now!

 

[SteveR]

Congratulations on the early out deal. $54k in a COLA pension is a very nice income and opens up a lot of doors for other options. The real question is how are your expenses? Living on $3k vs $60k is a huge difference in "quality" of life. With your wife's pension you have lots of options as long as you are willing to keep expenses under control. Your other retirement funds don't give you much room to expand your budget so expense planning is essential.

Good luck.

 

[sendbaht]

"Wow - if I had a 54K pension I would be ER'd now"

ME TOOOO!!

 

[Helena]

She is a Middle School Principal.

My school taxes at work

I've worked for my company for over 25 years
and if I retired this year, I would collect the huge
amount of $875 a month, no COLA... am I in the
wrong profession, or what

 

[wstu32]

54k per year guaranteed and i'd be done!

you are fine! enjoy fishing, hiking, travel etc...dude you are done!

 

[wstu32]

if that 54k includes medical...you are crazy /absolutely / with out a doubt done in my book

 

[wstu32]

enjoy

 

[dm]

The pension sure makes things easier. Medical is not included but we can continue on her schools group health plan, we just have to pick up the premium. We should be able to squeeze by on her pension alone and with the other savings give ourself some cushion.

The pension plan definatly benifits the administrators. Its based on your highest 3 years salary, so if you were a teacher working 9 months of the year in a low pay school district, and then took a high pay 12 month position for 3 years , your retirement is set.

Of coarse she can take a lump sum payout of $250,000 or so. I think we will pass on that option.

There were several options on how to take the pension. We are going with the plan that if my wife were to die before me, I would receive 75%. If I die before her she get a raise, as she can change the plan to no survivor benefits.

The 54K is if she works one more year. If she were to quit this year it would be closer to 49K.

Well now that she is basically locked in, Im only staying to July as we need to transfer from my medical insurance to hers and July is the sign up date.

 

[My Dream]

If I read between the lines dm mentioned TD Waterhouse which is Canadian, therefore Health insurance is quite different than in the US. We have basic coverage called OHIP (I think it's still in effect). Although it doesn't cover as much as it did 10 years ago, it's still very helpfull.


At 54k per year, I'd have money left over and I live in the Toronto Ontario area. Looks good to me. Go for it!

 

[dm]

No were not in Canada, We live just outside St. Louis. I'm just use to Waterhouse that is now TD Ameritrade.

It sure would be nice if everyone had the option that my wife has. How much would we all have if 24% of your salary went to your retirement plan. She puts in 12% and the district puts in 12%. Nothing goes into Social Security.

 

[testtubes]

My wifes retirement pension after 25 years in the classroom as a regular teacher is $19,200 here in Louisiana.

Lucky you,

 

[Donzo]

Nice!

Having a COLA pension of 54K......

I would have all of my savings in stocks/best chance of significant growth.

I currently have 62% equities cause I live off my savings.

You got it made

 

[dumpster56]

I am doing it on a 33,000 pension with a cola and medical bennies.

I am a substitute teacher now and a track coach. Makes another 16,000.

Man this is so great!

even my blood pressure is lower than last month when I was finishing in Newark nj!