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Subject:  Re: State pension vs Higher salary Date:  4/19/2012  1:25 PM
Author:  joelxwil Number:  70560 of 75383

Well, it depends on what salary and benefits your new job will offer. While I never had a pension plan specifically, I had a very good 403B plan. Between my contributions and the contributions of the company, I was putting away 24% of my salary tax-deferred.

Now, of course, I had to manage my money myself. I was responsible for making the decisions, and so my retirement depended on what I did in that retirement account. Several decisions were very significant, such as selling everything around mid-March of 2000. That locked in some good profits and kept me from holding a significant loss. Of course, there were also choices of which mutual fund to buy, and the consequences of that decision could be significant. The bottom line is that if you have a plan like that, you should be prepared to manage your money intelligently.

If your new job offers a pension plan, remember that it can be modified at any time, and check your vesting rights. I have not looked at this sort of stuff for years, but some places required you to have put in as much as a year before vesting. Be sure that you are well informed. Just how well is the company doing, and what are its prospects?

You also need to look at Social Security. My wife and I get around $40,000/year from Social Security. Unfortunately, that is subject to government whim also.
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