The light at the end of the tunnel just got a lot closer (retired, years)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Congrats! A RIF package is talked about daily at work. I had a VSP in my late 30s, so I doubt lightning will strike twice, but I can hope. 59 when planning to go at 62 is a sweet deal. We don’t have a lump sum option for our pension. I’m sure you've checked the lump sum comparison. Most lump sums are not a great deal.
YIPPEE!!!! I hope all goes well with the separation package and you are soon retired.
It's normal for you and the wife to be a bit nervous. You will see that it's all going to be fine. We found that we actually spend a lot less than our original retirement budget. We consciously padded the budget a bit when calculating our future expenses to prevent surprises, and I'm sure you did the same. Many expenses of our working years (lunches out, dry cleaning, commuting expenses, etc) ended and that helped too. I planned to work for a year after my hubby retired, but I was so ready that I ended up retiring 4 months after he did.
You can pay off your mortgage quicker by increasing your payment each month (applied to principle). I did that. You save on interest that was as well. With the new tax law, you might not have as much of a mortgage interest deduction as before anyway.
We have been making extra payments over the years, just never went crazy trying to pay it off because we thought we'd be relocating when we retired. After looking around we've decided we love where we are and will stay here in NY. We will be making even larger payments towards the mortgage but I'd like to keep the retirement income below a certain level for a couple of years. Our son just started college and if we stay below that level he could qualify for the SUNY free tuition program and save us $6k per year.
Quote:
Originally Posted by DaveinMtAiry
I'm 59 and am still working. Bite me.
Ouch! This was a huge shocker, first time in 15 years the company went this route instead of a RIF. One of the reasons I'm confident I'll be accepted is this method seems to be the obvious way to move older, higher paid employees off the payroll and have them get their pensions off the books too.
Quote:
Originally Posted by Perryinva
Congrats! A RIF package is talked about daily at work. I had a VSP in my late 30s, so I doubt lightning will strike twice, but I can hope. 59 when planning to go at 62 is a sweet deal. We don’t have a lump sum option for our pension. I’m sure you've checked the lump sum comparison. Most lump sums are not a great deal.
As I mentioned above, first time in 15 years they went with a voluntary separation instead of a RIF. The extra 3 years I should be gaining from 62 to 59 are a huge emotional benefit. My grandfathers died at an average age of 58.
As for the lump sum, a couple of years back I posted that both my wife and I have pensions and her SS PIA is already more than half of mine and I'm a max earner. We have several roads we can take and they all seem to provide a secure retirement with income that covers our expenses and a 401k that provides for comfortable discretionary spending. The weak link in the equation in my opinion was my pension. Because it was frozen a few years back it's not gong to increase. Because my wife is 2 years younger and as a woman has a longer life expectancy the monthly annuity option for my pension takes quite a reduction with the 100% survivor option. There's also no COLA. We decided that she would take SS at 62 and I'd delay. The SS Survivor benefit doesn't get reduced as long as the age requirement is met and it has the inflation adjustment the pension lacks. In the meantime we would use the lump sum to finance the delay by investing it fairly conservatively allowing the 401k once rolled to an IRA to hopefully grow. Also feel this provides a little protection against a market downturn early in retirement since we're using the lump sum and not relying on the other savings.
That pretty much mimics our plan. DW is already retired and at 66. She filed at 62 @ about 1/2 mine, which is already maxed for 35+ years, and has a small COLA pension of about 10k. My pension though not COLA, is fairly significant and continues to grow about $35/mo for every month I stay. By age 62 it alone will cover all our expenses including the mortgage. Though I could easily pay off the mortgage from savings with no penalties, I’m still in the camp that the mortgage rate is so low that it will not be long before even a 3 year CD will pay the same or better interest, sonin the long run, liquidity and earnings will exceed interest. I plan to delay SS as long as I feel it makes sense, hopefully to at least 69, health permitting, and do Roth conversions and withdrawals to minimize RMDs after age 70. We’ve been empty nesters a long time now, so our desired fixed costs are fairly predictable. The nest egg is essentially for unexpected events and discretionary spending.
Can volunteer RIF still qualify for unemployment compensation in NY??
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This was a huge shocker, first time in 15 years the company went this route instead of a RIF. One of the reasons I'm confident I'll be accepted is this method seems to be the obvious way to move older, higher paid employees off the payroll and have them get their pensions off the books too. 
