No. of Recommendations: 0
I thought the Horror Story discussion was interesting. Let's do another.

58 yr old Mr. Blenis, took early retirement package from GTE, four years ago (1998). His nest egg of $500K has declined in value to about $300K.

He has a 72(t) distribution plan paying $2K per mo from his plan.

His wife, 55 yo, earns $29K as an office manager.

He has returned to work as auto parts delivery driver at $10.50/hr about one-half his pre-retirement rate.

At retirement he took a lump sum payment, about half of which was his own contribution to company retirement program. He could have taken $1K/mo annuity. Financial adviser advised lump sum. They were concerned about the future of the company after merger with Bell Atlantic. He has had a heart attack and was advised that lump sum would ensure his wife got funds in the event of his death. Annuity would otherwise stop at his death. He was calculated to need 20 years of annuity payments to recover the $250K offered as a lump sum.

He is concerned that his current situation allows nothing for the unexpected. He is managing to save $100/wk in a credit union savings account.

He has a meager mortgage on their home: 15 yr fixed at 5.1% interest. Payments on their car (2000 Chevy Monte Carlo) and truck (1998 Dodge pickup) were recently rolled into the mortgage to make interest deductible. Their $25K trailer counts as a second home. Its interest is also deductible. The two bills together total about $1000/mo.

Their living requirements are modest. The eat out about twice a week. Their favorite place has a $7.95 early bird special. They enjoy taking the grandkids to bluegrass festivals where they also camp. He would like to have more time to camp.

Recently the quarterly premium on his health insurance increased from $150 to $400.

What would Fools recommend for this one? What should he have done?
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.