Greetings, Foolishat50, and welcome. You wrote:

<<I began work with the State of Georgia in 1969. I worked for 15 years and then left employment and took the money out of my retirement account. I was employed for eight years outside of state government with no other retirement account. I have been back at the State of Georgia for 7 years now. I have been given the option of buying back the 15 years that I had before at a cost of $14,000 and some odd cents. However, I don't have that much money and would have to borrow it (either on a home equity loan, which I don't really want to do, or from the credit union at about 9% interest). Also, let me tell you that the "old" retirement system I was under in 1969, at retirement would give me 90% of my salary, but under the "new" retirement system that I'm under now, will only give me 50% of my salary upon retirement. My question is, should I borrow the money to buy back those years, or should I just begin investing in a Roth IRA and perhaps some index funds and forget about buying back those years. I am 50 years old now and if I buy back those years, I could retire in 8 years, but with penalties. Under the new system you can't retire until you are 65 without penalties, I think. Anyway, I know it's complicated, but please tell me what you think or where I can get some good advice. I am a single woman, with no husband's retirement to count on.>>

This is indeed a complicated computation. IMHO you will be well served by seeking out a skilled, fee-only CFP in your area who specializes in retirement planning. That person can run all possible scenarios for you so you can make the best decision for your circumstances. It may cost you $200 to $500, but it could benefit you by thousands. For tips on finding a planner, see my article at http://www.fool.com/specials/1999/sp990728.htm.

Regards..Pixy