I remembered to log on here.
Summer has been fabulous here, east of the middle of nowhere. We've had an unusually warm summer with lots of intense thunderstorm activity. My power surges (hot flashes) have kept me indoors in temps above 80, enjoying nice cool AC.
I turned 56 yesterday...which means I am now eligible for my FERS MRA+10 deferred pension.
I filled out the paperwork and will send it in tomorrow. I could wait until I'm 62 to draw it, but I am of the "bird in the hand" camp. Tomorrow is guaranteed to no one.
Mr B helped me analyze the tax ramifications of the increased taxable income, which will be negligible. I will remain in the 25% tax bracket. If I add my after-tax pension payment to my already existing VWALX mutual fund, I can use it as a multiplier to earn some pretty serious TE dividends, on a 30 day compounding basis.
The loss of 5% per year (by drawing my pension at age 56) for every year I am under age 62 will be partially offset by the compounding power of the 30 day dividends earned in VWALX. Not completely, but again, a bird in the hand...
After 1 year of investing my pension, I will then be in a better position to loosen up the budget purse strings. I also have a 4 year plan in mind to purchase some waterfront property in the NYS Finger Lakes wine country, perhaps near Ithaca. I am looking at relocating from the lake effect snow belt from hell by age 60.
The chuckle factor I am getting from planning to use my hard earned pension to buy a lifelong dream house on the water at age 60 is immense.