Today I received a buyout offer from my company. I have been with the for 10 years and am part of a union, but we gave up the pension three years ago and opted for a 401 benefit instead. What ever pension we have has remains frozen since then. As of right now I’m set to receive about $450 a month when I retire (I’m current 33). The lump sum they are offering me is about $30,000. Of course, if I roll it over to an IRA there are no penalties or taxes. If I took the buyout I would be leaning towards taking the cash and using it to payoff some credit cards and put the rest into our house and possibly a car.
I currently put 10% into my 401 with the company adding an additional 6% and my wife put 3% into her 401 as well. So we do have some sort of a retirement plan. I’m just stuck on letting the pension ride and take my $450 when I retire or put it to use now.
I should also mention that I am married, with one child and we do own a home. We currently have about $6000 in credit card debt, but it’s not drowning us as of yet.
Submitted October 19, 2020 at 08:30PM by randuss https://ift.tt/3jicRKp
