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Thread: I've got a decision to make.......

  1. #1

    I've got a decision to make.......

    I got a call from a co-worker this morning. He was on his place on a river in Idaho. He had gotten a call from his wife on Saturday. He'd received a letter in the mail offering him early retirement.

    After talking with him, I checked my Saturday mail.

    I got the offer too!

    Of course, it's reduced income but then, I won't pay Social Security and with a reduced income less taxes to pay...........

    I've got some research to do and make a decision before month's end.....


    I'm only 58 and can't touch my 401K without paying penalties for a while......


    It's a good decision to make ......I guess....


    Got to do some research!

    What to do....................

  2. #2
    Join Date
    Apr 2007
    Location
    No, not all of SoCal is Los Angeles!
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    8,983
    I wish I had your problem (said with a wink). I accepted a job a couple years ago when I had two offers. One was a lot more money but a lot more of a commute (2 hours each way IF everything is moving).

    I did a lot of figuring (spreadsheets help). If you're comfortable now and the reduction will take you below comfortable, I'd think carefully. I thought; hey for that kinda money I can give up 4 or 5 hours of my life to commute. Fortunately, friends made me see clearly that money really wasn't everything. I would have had NO shop time. Similarly if you retire, you'll have lotsa time but, if it means no money for materials, what good is it.

    Good luck and happy figuring.
    Any sufficiently advanced technology is indistinguishable from magic.
    - Arthur C. Clarke

  3. #3
    Ken,
    Big decision, but for reference, my Dad was 2-3 years older when he was offered early retirement. For spare change, and to keep costs down, (can you say employee discount) he found a part time job at a hardware store - still there . He's really enjoyed retirement - he'll be 80 this winter and is going strong - in part because he was still young enough to get involved in a lot of things which have kept him busy.

    Good luck on working things through to resolution. I really hope the numbers work in your favor!

    Wes

  4. #4
    Join Date
    Oct 2006
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    ozarks
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    4,992
    what kinda clauses are contingant on recieving your retirement ken?
    could you for instance offer consultation in your field?
    could you work for a competetor?
    besides the number/time crunching those are some things that come to mind..
    tod
    [SIZE="1"] associated with several importers and manufacturers.[/SIZE]

  5. #5
    Join Date
    Nov 2006
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    Tokiwadai, Japan
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    Don't know if it is relevant for where you work now, but my SIL worked at a large company and was given a one time offer of early retirement. She too thought long and hard and then decided to take it at the last minute. Less than a year later, the company announced cutbacks in both employees and future retirement/pension benefits... Her's were locked in, so she is doing fine. Appears the early offer was a hint of things to come, at least in her situation.

    Good luck in whatever you do.

  6. #6
    I work for a very large Global Electric company. They have a policy that you can work part time after retirement but only after being off for at least 6 months. Then I could come back to work after that and pick and choose the jobs I wanted to take on....

    I'm going to call some friends of mine who have retired and see what they say.

    It's going to be a tough decision!

    More research.

  7. #7
    Join Date
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    Odessa, Tx
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    One other thing to think about Ken, is that if you work a little longer, your Social Security check will also be larger when you do start receiving it, (even if you start collecting it early at 62+), and from my personal experience, NO WAY would I take money out of ANYTHING (again) that required paying a "Penalty". YMMV

    I wish you the Very Best in your Decision, as it is never an easy one to make for most folks.

    This brings to mind a story about a Lady that asked her Friend how she and her husband were enjoying his Retirement. The Second Lady said, I'm not enjoying it very much!! First lady asked Why? Second Lady replied, "Twice as much Husband, Half as much Money!!
    Last edited by Norman Hitt; 08-06-2007 at 09:02 PM.

  8. #8
    Join Date
    Dec 2006
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    RETIRED(!) in Austintown, Ohio
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    Ken,
    I've been retired for about three years now. I 'hung it up' at age 59, and have never looked back. I'm really enjoying this retirement stuff!

    That said, there are a few things to add into your considerations:

    1. Will your retirement compensation be enough to meet your monthly expenses? In addition to food, mortgage, clothing, etc., don't forget to factor in annual or semiannual expenses like property taxes, car insurance, etc. Also, do include hobby expenses for everyone in the family. Retirement won't be much fun if you can't afford a few hobby things.

    2. If you want to travel, will your retirement compensation cover that, or will you be dipping into savings? You're planning on living for a long time, aren't you? You don't want to blow your savings early.

    3. Home maintenance and remodelling can get expensive, and retired or not, they tend to be ongoing. Got enough for that?

    4. Don't know your current situation, but sometimes taking the equity in your home - by selling it and moving to a more modest home in a more economical area - can benefit a lot, too.

    5. And now for the BIGGIE: Medical and Dental insurance. Will your retirement package provide it, or at least subsidize it? It can be very expensive to get it on your own. It was the availability of good, but inexpensive medical & dental coverage that made the difference between retiring, or working another six years, for my wife and I. I'm retired USMC, so I could get TriCare coverage very cheaply.

    6. On the plus side, you'll save a bit by not having work clothes, lunches, etc. to buy, or any commuting expenses. The lack of commuting may even help reduce your car insurance premiums a (little) bit.

    I'm sure you've already taken most, or even all, of the above into consideration, but if not, it's offered here as 'food-for-thought.'

    Hoping that all works out for you... Enjoy your upcoming retirement!
    Last edited by Jim DeLaney; 08-06-2007 at 10:06 PM.
    Jim D.

  9. #9
    Join Date
    Nov 2006
    Location
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    A lot depends upon how you feel about your job. I "retired" at age 59 due to a layoff. Although I enjoy woodworking, I'm bored and would much prefer to be working.

    As far as medical insurance is concerned, once COBRA runs out (if the company won't give you medical insurance) you'll pay through the nose - if you can get it. Probably $1,000 per month just for coverage for you - and even more for your spouse. Don't believe the figures you see on those health insurance company web sites. When you apply for those plans, you'll find that they won't underwrite you at those rates. If they agree to cover you, it'll be at a MUCH higher rate.

    If you like your work, and you think the job will still be there, stay until you're 65 - it's only a few more years. You'll get more social security and Medicare is a great medical plan - much better than anything you'll find on the open market.

    Mike
    Ancora imparo
    Go into the world and do well. But more importantly, go into the world and do good.

  10. #10
    Join Date
    Dec 2006
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    Jim beat me to the insurance issue. It has been a major factor in my decision to work for at least 3 more years. It's not really that bad. Most days are still fun. Just be sure to be able to keep the spiny addiction funded. Best of luck in your research.
    ________

    Ron

    "Individual commitment to a group effort--that is what makes a team work, a company work, a society work, a civilization work."
    Vince Lombardi

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