Lucky for me, the early retirement offer just came at the right time. Since I have planed to retire when I reach 55 in October this year, I jumped right in to accept the offer. In two months, I will be done. The buyout did add a little extra ca$h to my monthly pension. I also will have the option to get the lump sum from my 401K (about 100K with 20% tax withheld) or roll over to other IRA. Since I am 55 and retired from work, I will not pay 10% penalty for the early withdraw.
I am thinking that I can take the lump sum and laddering in a few CDs to provide me some fixed income to supplement my pension. With 5% interest from CDs for 100K, I can safely earn $400/month without touching my principal.
Are there any better options to work with that 401K money which can provide me a nice and extra safe monthly income
Appreciate your help!!!