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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.
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