Skip to main content
No. of Recommendations: 1
It is impossible to answer such a question in a void. The first thing I looked up, which may or may not be reliable, listed Colorado as the 37th most secure state pension fund, about 66% funded:

Another factor is your age and job security. In Virginia, pensions start making sense if you reach the 20, 25, and 30 year marks. If you have to retire before that, the pension is very modest.

In my wife's case, she is one or two years away from the 20 year mark, at which point the monthly number jumps from about $1000-1100 per month to $1700, and if she makes it to the 25 year mark it jumps to over 2300 per month, and at thirty it jumps to over $3000 per month.

My wife bought 4 years about 15 years ago. In my wife's case it may work out because she is nearing the 20 year mark and her pension provided a nice hedge against the crashes of 2000-2, and 2008-9. At the moment, the money she put into the pension will produce more income than an equal amount of money in her IRA based upon a withdrawal rate of 4%.

Whether that will be true five years from now, is unkown. And of course she owns the corpus of the IRA and not just the monthly income, which provides a measure of flexibility that the pension does not offer.

If possible, I recommend both - buy the years and max the 403(b).
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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.