posted on July 2, 2002 07:40:32 PM new
Hi all, I know that I can usually depend on the RT for some good advice, opinions, and different points of view. Here's my situation: In September I have to choose between taking my retirement money from my previous employer in one lump sum or receiving $88.00 a month for life. I'm thinking about taking the lump sum and using part of it to go back to college full time. The rest I would put into an IRA or CD (yes I know interest rates are the pits). I'm 42 and still don't know what I want to be when I grow up. I feel so in-limbo. I could still sell on eBay part time to make some extra money. Our car will be paid for in October so that will be an extra $400 a month we don't have to put out. Only 12 years left on the mortgage. Registration for the upcoming semester is August 22 so I need to decide fast or wait till the next semester. Sorry so long winded but I'm confused. Help!!!! Barbara
posted on July 2, 2002 07:52:29 PM new
1. Take the cash- you never know what could happen to the company's retirement fund.
2. Use the car $+ to make extra principal payments on the mortgage. It will cut the term considerably and save $1000's in interest.
3. Is the college course for a specific degree/profession?
posted on July 2, 2002 11:10:39 PM new
Since you're only 42, I'd take the money in lump sum--and promptly invest it in a tax-deffered manner. Sure, it would be nice to use it *now* but it could make all the difference in your retirement years (when you'd also have to pay much less in taxes on it). It pays to have a number of eggs in your basket when it comes to retirement--this would be a big plus to add to whatever pension you will be receiving and social security $ (if it still exists in 20 years ).
I wish I'd had that option--when my mother died, I found she'd arranged for me to get her retirement money since she had no spouse. But it comes to me in a monthly payment. Since I was so young when I started receiving it, that monthly amount is tiny--I have been receiving $54.21 a month since I was 22 and will continue to do so, as far as I can see, for the rest of my life. I use it to pay my car insurance.
posted on July 3, 2002 03:11:22 AM new
Hi and thanks for your replies. I would be enrolling in the Computer Information Technology. We have a nice community college about 15 miles from me. I went there when I was younger and have also taken a few night classes in the last few years. Since I already have some of the classes out of the way I feel I need to keep up with technology. When I quit my job last year I took my 401K money and put it into a CD. I'm only working part time now at a real estate company and have no benefits. I think part of this money could really benefit my future.
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