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Re: Should I buy time in my gov't pension plan?

What happens if you do not stay with the municipality until retirement? If I leave before I reach full retirement eligibility then I have two options. 1) take a lump sum payout of the money I have contributed to the pension plan but not the money the city has contributed. I currently contribute 8% ...
by lm002e
Sun Jun 15, 2014 5:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Should I buy time in my gov't pension plan?

It looks like you are saying that you would need to come up with $81,000 cash from a combination of pretax and after tax money to plunk down right now in order to purchase 5 years service credit. Yes, that's correct. I currently have $52,000 in pretax money and another $30,00 in after tax I am assu...
by lm002e
Sat Jun 14, 2014 2:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Should I buy time in my gov't pension plan?

So the consensus seems to be that purchasing the years makes sense. Here is one of my major concerns: since buying the time would pretty much deplete my various cash/mutual funds/etc, I worry that I'd be poorly diversified. Essentially I'd have all my retirement eggs in my employer's pension basket...
by lm002e
Fri Jun 13, 2014 8:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Should I buy time in my gov't pension plan?

So the consensus seems to be that purchasing the years makes sense. Here is one of my major concerns: since buying the time would pretty much deplete my various cash/mutual funds/etc, I worry that I'd be poorly diversified. Essentially I'd have all my retirement eggs in my employer's pension basket....
by lm002e
Fri Jun 13, 2014 5:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Should I buy time in my gov't pension plan?

If your municipality is well funded and on solid footing it makes tons of sense. 23 vs. 28 years of service + 84% of your best 3. .. which typically will include as much OT as you can get. I don't say that in a mean way.... I too have a pension from a municipality and like you, I did not make the r...
by lm002e
Fri Jun 13, 2014 11:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Should I buy time in my gov't pension plan?

I'm with midareff. 3% of High-3 is a great deal for you, pretty terrible for taxpayers. But you didn't make the rules, so harvest the benefit before they wise up and change the rules...which they will someday because that pension is unsustainable. :wink: You're absolutely correct. The pension plan ...
by lm002e
Fri Jun 13, 2014 11:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Should I buy time in my gov't pension plan?

The details: I work for a municipal gov't that offers a defined benefit pension plan. I will be eligible to retire after 23 years of service and my final pension payout will equal 3% of my highest 3 years' average annual salary for each year that I've worked for the city, ie. after 23 years of servi...
by lm002e
Fri Jun 13, 2014 9:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I buy time in my gov't pension plan?
Replies: 24
Views: 2206

Re: Question about becoming a CFP

. Hi all! I can only assume that a forum such as this has more than its fair share of Certified Financial Planners roaming around. So... I just started taking CFP classes this fall. I really enjoy the subject matter but I have one dilemma: I don't currently work in the financial services industry an...
by lm002e
Wed Nov 28, 2012 10:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Question about becoming a CFP
Replies: 49
Views: 5379

Re: Question about becoming a CFP

Hi all! I can only assume that a forum such as this has more than its fair share of Certified Financial Planners roaming around. So... I just started taking CFP classes this fall. I really enjoy the subject matter but I have one dilemma: I don't currently work in the financial services industry and...
by lm002e
Wed Nov 28, 2012 8:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Question about becoming a CFP
Replies: 49
Views: 5379

Question about becoming a CFP

Hi all! I can only assume that a forum such as this has more than its fair share of Certified Financial Planners roaming around. So... I just started taking CFP classes this fall. I really enjoy the subject matter but I have one dilemma: I don't currently work in the financial services industry and ...
by lm002e
Mon Nov 26, 2012 10:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about becoming a CFP
Replies: 49
Views: 5379

Re: Decision Time -- Take Lump Sum or Pension -- HELP!!!

Running some numbers:

$675/month @ 6.5% ROI (this number can be debated) will be equivalent to a present value of $135K in 11.3 years (136 monthly payments). Of course, there are other important factors that have already been presented. But it may be helpful to start with the raw numbers.
by lm002e
Fri Oct 26, 2012 4:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Decision Time -- Take Lump Sum or Pension -- HELP!!!
Replies: 17
Views: 1156

Re: Texas Real Estate: Rent vs. Buy

I live in Austin, TX and I'm struggling with the same decision. I lean towards buying as hedge against inflation. The austin area rental market is nearly full (~98% occupancy rate) which will most likely mean landlords will be raising the rent in the coming years.
by lm002e
Mon Oct 01, 2012 3:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Texas Real Estate: Rent vs. Buy
Replies: 23
Views: 2036

Re: Save for downpayment or continue paying off debt?

I live in Austin, TX and $100K is most likely the low end of the housing market here. There is an outside chance that I could get a home for 50% off through a HUD program called "Good Neighbor Next Door". Unfortunately, there are very few homes that qualify for this program (only 7 listing...
by lm002e
Tue Nov 15, 2011 4:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Save for downpayment or continue paying off debt?
Replies: 14
Views: 1018

Re: Save for downpayment or continue paying off debt?

If I lose my job prior to putting in 23 years of service (age 53 for me), then I have basically 2 options: 1) cash out all money that I contributed (8% of my gross pay) but I would NOT receive any money that my employer contributed (14% of my gross pay). Obviously a terrible option. 2) at age 65 I w...
by lm002e
Tue Nov 15, 2011 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Save for downpayment or continue paying off debt?
Replies: 14
Views: 1018

Re: Save for downpayment or continue paying off debt?

Thank you for the replies. Here's the rest of the info, sorry I didn't include it initially. Car loan at 4.75%. Student loan at 2.5%. I have $2000 in my emergency fund (still working to increase it). I don't currently have anything saved towards a downpayment but in 6-12 months I could reasonably ex...
by lm002e
Tue Nov 15, 2011 3:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Save for downpayment or continue paying off debt?
Replies: 14
Views: 1018

Re: To Know or Not To Know

'Tis better to know what you don't know, in my opinion. In my profession (paramedic), it's vitally important that I know what I don't know. Frequently patients ask if this or that is potentially harmful, fatal, dangerous, etc, and many times I'm left saying, "I'm not 100% sure but I can take yo...
by lm002e
Tue Nov 15, 2011 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: To Know or Not To Know
Replies: 7
Views: 808

Save for downpayment or continue paying off debt?

Hi all, My short bio: 34 years old, single, no dependents (well, two cats). Gross income ~ 75K (though this is variable due to how much overtime is available). I'm a gov't employee with a pension on which I'll be able to draw in 19 years (age 53). I'll receive 70% of my salary at that point. I'm als...
by lm002e
Tue Nov 15, 2011 1:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Save for downpayment or continue paying off debt?
Replies: 14
Views: 1018

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