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

[Ken Fitzgerald]

This morning I got a call from a co-worker............Saturday he received a letter offering him an early retirement package.........I checked my mail.....I got it too..........

Decreased income but ...no Social Security to pay.....less taxes.......Medical Benefits and Dental Benefits stay the same with me paying my portion.....


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

[Jim O'Dell]

It's nice to have that decision to make. Could be a good wrestling match. Let us know which way you decide. Jim.

[Nancy Laird]

Oh, wow, Ken, what an offer. And what a dilemma. I know what I would do, but I wouldn't want to influence your decision.

IF you take that offer, just think of all the time you'll have to finish your shop and turn more stuff.;) :D

Good luck---

Nancy (137 days)

[Tyler Howell]

Run for it.
I had the chance over a year ago and have regretted my decission:(.
As many friends tell me "you can always get more work but never more time."

Some people get a lot of pleasure and satisfaction out their jobs so be sure to weigh all the factors.
Good luck!

[Ed Falis]

Ken,

Don't know how far along you are (though you do mention great-grandchildren in your profile). Could be a very good thing, if the money works for you - the extended benefits sound good. Might also consider that if they're sending out early retirement offers, it's most likely an attempt to deal with some bottom-line problems that may or may not get better. (Got the T-Shirt).

- Ed

[Jeff Bower]

As many friends tell me "you can always get more work but never more time."


Ken, I'm no where near retirement so I'm probably not a good source, but I think Tyler nailed it!!

[Jim Becker]

Could be a great opportunity, Ken. Do the math and see if you can live with it, especially considering any sources of income you might have available from time to time as a "free agent"...

[Mike Cutler]

Ken.

I would really advise contacting a retirement planner.
The company I worked for, and currently work for both offered early packages. ( I'm still too young, so I wasn't paying attention).
Some of the folks are allright, and some had to go back to work fairly quickly. There were a lot of little details, that they weren't aware of.
The rules on 401K's, cobra's, medicare/medicaid, FICA, etc aren't exactly black and white, and seem to change frequently. It really takes someone that specializes in this area to sort it all out for you.

Good luck though. I really hope it's in the cards for you.

[David G Baker]

Ken,
The same thing is happening all over the country. You really need to get some advice from someone that can run all of the numbers for you. Medical and dental are the main obstacles.
If you and wife's medical insurance is guaranteed to continue at its present status until you and your wife pass away, it is great. Many offer 18 months of medical and dental then you are on your own. The largest complaint I hear from early retirees is the horrible cost of medical insurance. My insurance package is okay but every year it costs a little more and I get a little less.
When a company starts offering early retirements and buy outs it is time to take a good look at the financial future of your employer. If you have a large amount of money in a 401K that is all or mostly invested in company stock, you may want to move the money into some other option as soon as possible. I did this and I am so lucky that I did. The offer of early retirement is sometimes like insider information of troubled waters ahead.
I don't know your age but if you are 55 years old and retire, you can start drawing your pension without the big tax penalty that everyone talks about.
Good luck. I did it and never looked back. Never been happier in my life

[Cliff Rohrabacher]

My wife is hoping for a buy out package. Her company usually offers them a lump sum of money, full benefits, credit for some years not yet worked toward their pension, and stocks.

I don't have any such luxury 'cause I never offered myself a retirement option.

[John Shuk]

I've seen alot of people head out before they initially planned to. Like somebody said before some jumped the gun and others are as happy as can be. Personally I like the idea of getting out a bit early and even if I take a different job I would plan on having "take this job and shove it" money if I don't like what I'm doing.
My sense about you is that you are a pretty well grounded guy and retirement could work more easily for you than I've seen others handle it.
Best of luck.

[Ernie Kuhn]

Ken,
Check your email.
Ernie

[Eddie Watkins]

Ken, good luck on your decision. Today was my first "real" retirement day so I'm pretty inexperienced. I waited nearly three years from the time I was eligible so I struggled as well. Interestingly, my blood pressure dropped 15 points on the systolic and 10 on the diastolic once I made the decision. I worked the numbers over at least weekly since last November and finally decided when my house was paid off I would retire. We doubled and sometimes tripled our house payments until it was paid for. That gave me a lot of peace of mind.

Eddie

[Bernie Weishapl]

Ken I am going to a retirement seminar Wednesday and Thursday. Good luck in your decision.

[Steve Schlumpf]

Ken - great you have the option!! I am sure that no matter what you decide - it will work out for you! Guess the one important question is - what does your wife think of the idea?

[Barry Stratton]

If your debt load is minimal.......that is a no-brainer!!! Good luck which ever way you decide Ken!

[Jon Shively]

I have always enjoyed reading your answers and posts about things. You have always sounded like a level headed person that knows where they are going and how they are going to get there. One thing I have seen happen to early retirees here in NorthWest Indiana with the Steel Mills is the change of insurance policy or losing their insurance policy so the company can keep making a profit. Read the fine line on the coverage and their commitment to covering you with insurance. The pay out is obviously a set sum and once handed over can't be taken back, but the promises of coverage and such all that has to happen is they sell the company to someone else and in the sales decision the new owner doesn't buy the past employees and bam you are without. Sounds illegal but is happening more and more. The suggestion of a retirement counselor is what I would suggest also as they can help you invest this lump sum so Uncle Sam doesn't cut it into a thin slice you get to keep. Good luck and I pray you make the best decision for you and yours.

[Pete Simmons]

Ken:

Like many of these posts have said most of us think of you as a very level headed person so I am sure you will put a lot of thought into the process prior to making the right decision.

Me, I was very lucky to be offered a similar deal some 6 years ago. I had already had a heart attack and bypass surgey in my early 40's so that weighed heavily on my decision.

I took the buy out.

Now I tell people I am wealthy not rich.

Money - we do not have much extra and everything keeps going up. I manage to make a little spending money with my wood work and laser work and we are doing OK.

We have friends at my old work place that know to the penny how much $$ they will have in the 401K when they reach 65. I wish them luck but remind them there is no rule that says you will reach 65. A few of them have already passed away at less than 60 years old.

Wealth - We have that - So far 6 years of the best retirement anyone could ask for. Beautiful community, lots of golf and do most things I want.
My work, as many of our friends see it, is really a joy to me as everyone at the Creek understands.

So 6 great years that no one or no medical event can ever take away from us and with a little luck many more of these great years ahead!

Tyler has it right when he said -

As many friends tell me "you can always get more work but never more time."

So I wish you Health and Wealth in the future!

[Leo Voisine]

I'm just a new guy round here - but not new to life.

Ya cannot get more time - true.

Maybe the retirement is not enough to live on - true

You CAN get a part time job and get more money - and be in more control of you own life. Getting control is the biggest challange.

I would go for it.

[Ed Garrett]

Ken,

I agree with the go for it crowd, but I always tend to run the numbers first. If it's marginal, consider that you only live once.

Ten years ago my dad was approaching a very comfortable retirement, but out of nowhere he got nailed by cancer and died at 62. He could have retired many years earlier. I wish he would have. I would have seen more of him in his last few years.

Sincerely,
Ed Garrett
Tallahassee

[David G Baker]

I'm just a new guy round here - but not new to life.

Ya cannot get more time - true.

Maybe the retirement is not enough to live on - true

You CAN get a part time job and get more money - and be in more control of you own life. Getting control is the biggest challange.

I would go for it.
On that part time job, is WalMart hiring greeters again? Thats about all I am good for after many years in a specialized field.

[Doug Jones from Oregon]

So Ken...have you made a decision? Did I miss it or are you still thinking? I've been sorta retired for about 6 years without benefit of a buy out or a pension, but I've never enjoyed my time more than this 6 years. I work in the shop when I want, I travel when I want. I don't have extra money, I'm not rich...I just live within my means. Maybe not to the standard that others would want...but, I'm ok with it as long as some 25 year old is not telling me how to do something!

Good luck.
Doug

[Ken Fitzgerald]

Doug....I'm probably not going to apply for it. My number is just over 5,000 and they are only offering 500 slots. The odds are I won't make the cut. I built a w/w shop 3 years ago and I've got some serious tool buying to do. In 2 years I can take a full retirement....the only number I have to make is age 60.....no management approval required. The LOML and I talked. She's 2 1/2 years older than I. We could make it but just barely on this offering. In 2 years more bills will be paid off and....In the next 4 weeks or so, I'm outfitting my shop and they'll be paid off by the time I retire. So in 2009, we'll both retire..she in February and me in August.

I can get into my 401K with out penalties then.....


It was tools or retire..........

[Brett Baldwin]

Be sure to get your Stubby American Oneway PM early in those two years so you'll have time to pay off the "accessories.";)

[David G Baker]

Ken,
You can access your 401K without any tax penalties if you retire early. There is an IRS rule that covers this. I retired at 55, accessed my 401K (actually rolled it into an IRA) and have been living on it since without any tax penalty. It is best if you live off of your non-tax deferred money prior to using your tax deferred.
I think you are making the wise decision, it is so much better getting prepared for the income change than jumping into retirement with blinders on.

[Ken Fitzgerald]

Be sure to get your Stubby American Oneway PM early in those two years so you'll have time to pay off the "accessories.";)

Uh...Brett....Why do you think....I'm looking at Oneida DC and a Grizzley jointer?...........As my wife and her friend would say "You gotta color coordinate and accessorize!":eek: :rolleyes: :D

[Brett Baldwin]

I should have known you had it handled. Don't forget to budget for camera batteries. Looks like you'll have quite a few snaps to take soon.:)

[Rick Gibson]

I got the early retirement offer 5 years ago. Pension was 52% of what I was making, actual take home was within pennies of 75%. Not having to pay into two pension plans any more and lower taxes made the difference. Without the expense of working my standard of living has not changed. Drug benefits and dental plan continued, living in Canada the other medical issues are not a problem (at least money wise). I'm having to much fun to ever want to go back to work. I'm 60 now and don't regret retiring at 55.

[Brian Kent]

There's a book I read a few years ago and have been recommending all over the place. It's called "Halftime: changing your game plan from success to significance" by Bob Buford. It is written for men in mid-career and later, with an encourtagement to do what you believe really matters instead of just doing the grind. His model can apply whether or not you continue with career, but shifting focus to the stuff that matters most to you.

(I know Zig Ziglar uses this "success to significance" phrase too, but I'm not a motivational speaker fan and have no idea whether his ideas are the same).

[Ken Fitzgerald]

Rick.......My pension would be about 50% of my standard take home but...I'd still have to pay taxes and health insurance out of that....

Brian....You are so right about a change in priorities.

My father died on the floor of an oil rig of a heart attack at age 46. I'm 58.....I've always worried about that and yet my Mom's going strong at 77. My coworker here just came to work for our employer 7 years ago and he's the same age as I. He's always said he'd have to work until he was 67. At least that is what he's always said until last month. His neighbor, our age, retired last fall. In March 2007 he was diagnosed with pancreatic cancer and he died in June. My counterpart says.....62 he's retiring....At 60.....when you hear the door slam.....It could be me......last one out turn out the lights.

Due to health issues...I can't elk hunt anymore....The LOML and I will be traveling ...enjoying the kids, grandkids and great grandkid.....I'll be w/w in my completed shop.....mainly turning....

[Gary Garmar]

Sorry to here about your health Ken; I to am pondering retirement. I turn 62 this December. I am a CRNA(Nurse Anesthetist) and I am really tired of being ON every day at least 8 hrs a day. I recently got a 3520b and I hope to become proficient enough(and the economy holds together) to retire with my 401 and SSI + a supplement from modest turnings. Doesn't seem like much of a plan but I'm sure it will work if i apply myself. Wishing you much success.

[Stephen Beckham]

Ken,

I know where you are at - I just jumped ship at 40 years old and got 50% of my military pay. The LOML quoted someone and said "Retirement is twice as much husband for half the pay..."

I think you are looking at it the right way sticking out the two years. I had to choose between staying till 30 years or getting out while I was young enough to start a second career.

Don't worry - if it's anything like my last two years - it'll be over before you know it. The biggest problem I had was that it was over before I knew it...:rolleyes:

All my good intentions of paying off cars and tools etc... Nah... Blew that one. But I love to go to my store now and I supplement my sales with my retirement some months and supplement my retirement with sales the others...

[Rich Engelhardt]

Hello,
I've come to the conclusion that I'll never retire - I'll simply just change jobs.

I worked my first ~ 20/25 years in jobs that I disliked and were nothing more than just a "paycheck".

I got out of that rat race by going back to school and learning computer repair. Working in the computer field since ~ 1989 has been good to me, both financially and from the perspective that it's something I enjoy.
After ~ 18 years, even something that I initially enjoyed so much is beginning to wear thin.

6 years ago (when I was 49), my wife and I made the jump into the home rental/rehab game. We started by picking up a rental property as a tax shelter. Wife had paid off our home, and we got slammed by the tax man.
We picked up a rental - - which wife turned around and paid off also in 5 years - so again, we were looking at another body slam by the IRS. We talked about it/thought about it - and decided that picking up another rental would be a good idea.

So we did. That 2nd one is slated to be paid off next year.
This time around, we did it a little smarter, and picked up the third one last year and have been working on it the last 9 months getting it ready for market. With the rent from the other two - plus all the spare money we throw at the note - plus the rent the third one generates, the third one should be paid off by the year after next.
Next year, we'll start looking for number 4.
Number 4, should be all paid off within a year from purchase if all goes according to plan.
My/our plan is to have 4 rentals that are paid off by the time I'm 59.- I'm 55 now.
The rental income should generate ~ $35,000.00 a year gross - which is a good "start" toward a "retirement" income.

By that time, and I'll have to sit down and do some calculating on the exact figures, I should be able to go extremely deep into "dept" (on paper only) to show no or minimal income - tap into the 401 & IRS with minimal tax hit - and go into home rehab on a full time basis.

I've found out during the course of this, that I really enjoy rehabbing old houses. It's an extremely satisfying past time - plus it has a lot of side bennies :D - like I can write off a lot of tools & supplies and keep them for my self as "overruns" :D

Re: doing it on a full time basis.
Mind you - this isn't a get rich quick type of scheme &/or along the lines of the popular "house flipping" shows on T.V.
It's a lot of hard work and long hours. My wife and I both work a 40 hour week - and then some - at our regular jobs, then spend another 40 to 50 hours a week on the rehab & other rentals.

It's enjoyable work and satisfying work, though. I find myself getting up at 4:AM on Saturday's planning out my whole day "on the job", with all the passion I used to reserve for other things, like fishing & hunting.

Re: Dropping over "on the rehab job" from "the big one" - as Fred G. called it.
Honestly? Who cares? I mean we all have to go sometime. I don't want to sound flippant about it, but I'd much rather check out with a framing nailer or hammer drill in my hand - doing something that I thoroughly enjoy,, than with tubes stuck in me in some sterile hospital room.

Bottom line I guess is - retirement?!?! We don't need no stinking retirement :D
Remember Ray Kroc? - founder of McDonald's - he "started" when he was 62.
If you're in "control" of your working life, then you are your own best "retirement" planner/advisor.
Allthough I must say those retirement planning events are a wonderful source of a free meal. The couple that I went to, they pulled out all the stops when it came time to chow down.

Take their free meal, but for God's sake (as well as your own) don't take any of their advice. 99.99% of these "advisors" are in terrible financial shape. If they can't handle their own personal finances, why anyone would trust them for advice is beyond me.
If you doubt this or find it somewhat harsh, simply run a credit check &/or background check on the finacial advisor you "interview" - and by all means you should investigate & interview them prior to signing anything/giving them anything.

Sorry for the long length - plus it's late (past 8:AM) and daylight is burning. I have a basement to finish :D

[Jim Becker]

Ken, it sounds like you made the right choice based on a lot of things, both short and long term. Retirement will still be here before you know it...especially if you distract yourself with all that nice new iron that's going to be headed your way... :D

[John Bailey]

I thought I had it made three years ago when I retired. I spent a couple of years doing part-time work, built a shop, outfitted it with tools and this year did nothing but get up in the morning and go to "work." It was great, no pressure, a great stereo system, and wood all over. However, I found that something was missing. For me, I missed the everyday human interaction. Being an educator, I missed the kids and the teachers. It probably has to do with the isolated area I live. Not many people around unless you go looking for them.

So, at 57, I'm looking for a new job, hopefully a little less stressful than being a high school principal, but something working directly with the kids. 57 is not a good age to be looking, but something will pop up.

The point, leave your options open. You might find yourself surprised, as I did.

John

[Roger Bell]

I am of a similar mind as Rich. Work is not supposed to be about stress, struggle, toil, being bossed around and watching the clock. It is supposed to be about fulfillment. It is supposed to be about utilizing and expressing one's unique talents in making the world a better place while enriching one's own life.

If that is the case, then retirement doesn't need to come at the earliest possible moment. But if that is not the case, then retirement or a change to something better cannot come too soon. One's age or financial condition are more or less irrelevant factors in the decison. What is relevant is the degree of fulfillment gained by staying vs. the opportunity to enrich one's life in yet other or better ways by leaving. And that is a judgment that only you can make.

[Gary Keedwell]

[quote=Roger Bell;643330]I am of a similar mind as Rich. Work is not supposed to be about stress, struggle, toil, being bossed around and watching the clock. It is supposed to be about fulfillment. It is supposed to be about utilizing and expressing one's unique talents in making the world a better place while enriching one's own life.


:rolleyes: Sounds like your describing a hobby more then the "average" workplace.:o :)

Gary K.

[K. L. McReynolds]

I retired 5&1/2 years ago---at 55. My net income changed $20 a week---less. I did lose eye and dental insurance---but kept most of the rest. $200 deductable yearly and they pay 80% of the rest.

Best thing I ever did. I started a small business and started having fun at work---did not make a whole lot---but did not need to.

[Roger Bell]

(Quote) "Sounds like your describing a hobby more then the "average" workplace"...........

A hobby?.......Not at all..........what I am saying is simply do not settle for "average"...because "fulfilling" does indeed exist in real life and, believe it or not, in the workplace. One does have a choice. Chose not to accept the "average".

There are plenty of people out there who have achieved it. I am convinced that almost anyone who wants it "bad enough" can have it....eventually....and with enough of the right kinds of preparation. Too many simply don't want it bad enough to do what it takes. It is not alltogether different from finding the right spouse. Most don't, but plenty do and anyone can.

[Gary Keedwell]

(Quote) "Sounds like your describing a hobby more then the "average" workplace"...........

A hobby?.......Not at all..........what I am saying is simply do not settle for "average"...because "fulfilling" does indeed exist in real life and, believe it or not, in the workplace. One does have a choice. Chose not to accept the "average".

There are plenty of people out there who have achieved it. I am convinced that almost anyone who wants it "bad enough" can have it....eventually....and with enough of the right kinds of preparation. Too many simply don't want it bad enough to do what it takes. It is not alltogether different from finding the right spouse. Most don't, but plenty do and anyone can.
Don't want to get philosophical but there are people all over the world who are just getting by and don't have the luxury of making a difference. Some people would think that "average" is a pretty lofty aspiration. But I'll say one thing....thank God we live in the USA so as we can have these great ideals.:)
Gary K.