My state employer allows one to purchase from one to five years worth of service credit. Each year would cost $60,000. If I were to purchase four years of credit ($240,000) that would increasr the monthly pension $1750.00 at my present salary. Hopefully I will receive another 20% raise prior to retirement.
Presently my 401 and 457 balances add up to $200,000 that I could use to pay down the $240,000 cost. I could "finance" the remainder over the next 48 months until I retire at about 7% through the state. A monthly cost of $1,144.00. This amount I believe is tax deductible.
My retirement age would be 64 and another 20% salary increase would adjust the pension service credit purchase to a monthly pension increase of $2150.00
By buying four years of service credit I feel I am diversifying. The pension would make up the largest portion of my total portfolio of course.
My thanks to all for your replys.
Presently my 401 and 457 balances add up to $200,000 that I could use to pay down the $240,000 cost. I could "finance" the remainder over the next 48 months until I retire at about 7% through the state. A monthly cost of $1,144.00. This amount I believe is tax deductible.
My retirement age would be 64 and another 20% salary increase would adjust the pension service credit purchase to a monthly pension increase of $2150.00
By buying four years of service credit I feel I am diversifying. The pension would make up the largest portion of my total portfolio of course.
My thanks to all for your replys.