Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (52) | Ignore Thread Prev | Next
Author: voelkels Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: About to Take the Plunge Date: 12/17/1999 7:42 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I worked for an oil company for about 18 years. Four years ago everyone over 50 with 10 years of service was offered an early retirement package. At that time the wife and I worked two blocks apart in New Orleans. We drove 57 miles each way to and from work. I had about 7 more years to pay on the mortgage. I decided that if I retired the wife would still have to drive those 114 miles every day and would also have to pay $70/month for parking. The mortgage payment would kill us. I knew, however, the company would offer another package in a few years.

I refinanced the mortgage. I got a 10 year mortgage at 7% (I had been paying 10%). I added an extra $500 to $1000 on every payment. The wife's job was eliminated (her duties were added to those of another nurse manager) and she was terminated (the other nurse manager quit within 5 weeks). Last March the next retirement package was offered us. The company would add 3 years to our length of service and 3 years to our age to calculate retirement payments (100% if you retire at 62 and 4% less for each year before 62. i.e. if you retire at 59 you get 88% of what you would get at 62). We were allowed to continue on the group health care until 65, and they would pay us 50% of what we would get from Social Security until age 62. I took it and retired 6/30/99 (I had to train my replacement).

I have a fair amount in a 401K and an IRA but I don't want to tap them just yet. I paid off the mortgage from my savings and don't have the cost of commuting. I plan to build a new kitchen, ect. If I can hold back my wife's spending (she still wants to send the kids & grandkids expensive presents for Christmas & birthdays, plane tickets to visit, ect.) I could live off the retirement without tapping the 401K or IRA. She also wants to travel. So far since we retired we drove to Indiana and then New Jersey in August/Sept, Florida for 10 days in October and Indiana-Ohio for almost 2 weeks over Thanksgiving. She wants to go to Dallas for Christmas and Las Vegas then California in January. I can't afford to buy a new car yet, so the answer is NO!

I wish you luck.

C.J.V.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (52) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement