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To: george76

Articles like this hit pretty close to home for me, so if you don't mind, I'd like to post a question and would appreciate any advice.

I'm in a state-funded pension plan for pubic educators. Been in around 10 years and have accumulated ~200k. I'm 50 and can retire at 62 with a pension of about 40% of my salary, a little more if I stay till 65. The state university pension plan is continually being underfunded by our weasily democratic governor (guessed the state yet?), so I'm very concerned with the funds being there in 15 years when I retire.

I'm still young enough to move to another academic position in another state and take my contribution with me and establish a TIAA/CREF or similar self-managed plan at another institution.

My question is this: stay with this state and take my chances with the pension (with medical coverage), or move while I still have the option to do so.


12 posted on 01/09/2006 7:11:30 PM PST by stiguy
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To: stiguy

You, like us all, have tough decisions to make.

Trying to predict ones future personal needs is really more art than science.

Trying to predict the future action of other people is impossible.

My advice is to get as much personal control of your money and your future as possible. That might mean a "rollover" of your pension money away from anyone else ( your case, the university pension plan run by strangers) and into financial vehicles (personal IRA's for example) that you control.

Watching all the sad mistakes of the Enron employees (and others) has provided many learning experiences for us all.

First, do not put company stock into your company retirement plan; if the company fails, then you lose your job and your retirement money.

Second, diversify. Own several different mutual funds from different fund family groups. One group (like Putnam lately) may do illegal or stupid things with your money. If you have allot of money, and buy stocks...do NOT put over ten percent of your money in one stock.

Third, Watch expenses hard. Folks like Vanguard family do a good job, generally.

Do you have a local CPA or Certified Financial Planner (who works only on a fee/hourly rate and NOT on commission) who knows you and the local situation well?

And that you trust? Talk with them, do a longer term budget, and read some of the financial stuff.

Do you maximize your Roth IRA's?

I can give you some websites if you want, too.

Good luck.


17 posted on 01/09/2006 7:48:53 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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