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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (9019)	5/16/2011 4:56:55 PM
From: research1234	1 Recommendation Read Replies (1) \| Respond to of 34328

It all depends on how much her pension would be reduced if she starts to draw it immediately. If there is no reduction, then starting immediately seems like the obvious choice. If the reduction is significant, then waiting until she retires to start payouts would make more sense. Otherwise, best thing to do is set up a projection spreadsheet to see how the picture looks in 10 or 15 years based on your investment and tax assumptions.

To: Steve Felix who wrote (9019)	5/16/2011 5:35:08 PM
From: JimisJim	Respond to of 34328

I agree with research1234's reply... FWIW... /eom

To: Steve Felix who wrote (9019)	5/16/2011 11:46:07 PM
From: Jim P.	Read Replies (1) \| Respond to of 34328

No survivor benefits besides the total distribution of the lump sum benefits, no additional contributing to or build of benefits after August, no inflation adjustment on future benefits or current when drawing. I say start the pension and put it into dividend stocks. It should not be to difficult to put together a spread sheet showing the benefits of starting compared to waiting. My pension has a 6% penalty per year for every year I start my pension below my normal retirement age. I take it this does not apply in any form. My guess would be your wife's pension value drops every year she delays taking the pension by the rate of inflation. There have been no raises at my job for three years. Retirees from my work are still getting inflation adjustment in years when the CPI is positive but no reduction for drops. Pretty sweet deal if you catch it. You are not all wet but suspect you might be if you make the wife upset about her choice. Keeping the peace also pays dividends. jim

To: Steve Felix who wrote (9019)	5/17/2011 12:15:40 AM
From: Dave	Read Replies (1) \| Respond to of 34328

don't have a pension, but I would appreciate everyones thoughts on one. As of August our county home, the wifes employer, will be sold to a private outfit. If the new management isn't a-holes, she would like to work for a little longer. ( who wouldn't as opposed to spending every day with me? ) I'm trying to talk her into taking her pension right away while she continues to work, putting whatever is left after taxes into preferred or dividend stocks. A hard sell so far. She wants to wait until she quits working. They would pay her to 100 if she lives that long, but if something happened the day after she retires, I, or the kids if I died too, would get the equivalent of 13.39 years of annual payments in a lump sum. As time goes by, you just subtract what has been paid out from the starting lump sum and that is what is paid out. After 13.39 years there would be no payout upon her death. ( I couldn't care less about the payout ) She will no longer be contributing or building up time toward the benefit calculation from years of service after August. I say the earlier she takes it, the better the chance she goes beyond 13.39 years. Am I all wet? Steve You should also check to see if she takes a somewhat reduced payment you might continue getting the payment until you die. I had that choice but took the max since my family history predicts I would out live her. A second thing to look at is medical insurance continued (assuming she has it now)for you and under 18(?) dependents. This can be a large item. My medical insurance was changed this year with reduced benefits and higher costs. Check it out. From my experience check out everything you can. Taking SS early may not be a useful thing. I don't know the rules on this now but I waited 3 or 4 years before I started SS. Best of luck, retirement is great! Dave

To: Steve Felix who wrote (9019)	5/17/2011 9:05:13 AM
From: Elroy	Read Replies (2) \| Respond to of 34328

if something happened the day after she retires, I, or the kids if I died too, would get the equivalent of 13.39 years of annual payments in a lump sum. I also don't have a pention, but am wondering about this. Someone who has worked for 20 years can retire at 55 (or whatever the age you said in a different post) and receive 13.39 years of salary in a lump sum? The salary is the final year's salary, of some percentage of that? It just seems like an awfully large amount, but I guess it depends on the percentage of the final year's salary.