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<<Sorry it took so long to get back with the question of my situation. I'm 45 and offered early retirement. We are being told to make our company more competitive with others in our industry. Options of so much a month or lump sum. I wish to take the lump sum if I can roll over to an account I can draw interest on to live on.
Our plan allows this if a retirement account. What type of accounts would this consist of to live on the interest? CD's, money markets, etc.? My husband still works. We owe no debts. Home, cars, all paid for. I wish to go to school, learn a new trade. Then go back to work, or even work part time as I go to school.
Any suggestions?
I got lost on the board. My question is in the new Retirement board if anyone notices.>>

As I said in an answer on the AOL site, you are probably better off taking the lump sum now, having that sum transferred directly to an IRA of your choosing, and letting it grow until age 59 ½. You cannot take the money now because you are too young to retire from a qualified plan without paying all tax and a penalty. The only way to avoid the penalty is to take the annuity. Take that, and it will never change for the rest of your life. You can draw from the IRA before 59 ½, but only in a manner that is similar to taking the annuity.

As to investments - Hey, you're only in your 40's. IMHO you should go for the growth so you can retire in style. Cds and money market funds will barely let you keep even with inflation. They are very poor choices to grow retirement monies.

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