If it’s a good deal and you are close to retirement, it may be a simple decision. Before thinking about the big decision, consider creating a financial snapshot. You don’t need anything fancy, just a sheet of paper listing what you own (your home, investments, retirement accounts, etc.), what you owe (mortgage, car loan, credit cards), what you earn (your current income from all sources) and a rough estimate of what you spend per month.
With this information, you can put together a snapshot of where you are financially. Be sure to include any bonus payments/salary continuation, NUA stock distributions, and 72T distributions under consideration. The number questions are easy to answer, but it may be difficult to “un-ring” the early retirement bell.
Once you’ve finished the financial statement it’s time to tackle the qualitative issues.
Here are some questions to get you started:
- What do you want to do?
- Making the best “financial” decision is not always the best life decision. If you love what you do, consider staying put.
- If you’re inclined to leave, what will you do with your time?
- Will you volunteer? Work part-time? Or keep grandkids?
- Perhaps you can start a dream business or new career?
What will you do to contribute to, continue experiencing, and enjoy life?