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Advice wanted concerning retirement options! Please read
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Submitted by pertinazzio on November 1, 2007 - 8:33am
My wife and I are trying to think through a decision that we have to make very soon.
She is about to retire from the federal government. She has the option of receiving a full pension or a pension that is 10% less now but would provide for me if she were to die. If she takes the full pension I wouldn't get anything upon her demise. We have already decided that I could probably live well enough in the unlikely eventuality that she died before me so we are inclined to take the larger monthly payment.
But here is the rub. If we take the larger amount I wouldn't be eligible for insurance under her a plan if she died! I am currently 57 so the real danger period is between now and the time I turn 62 when presumably would be eligible for Medicaid (is that correct).
If we took the larger pension, here is the worst case scenario I can imagine:
1. She gets run over sometime soon.
Here is the best case scenario that I can imagine if we take the larger pension for her.
1. We invest the difference between what we are getting and what we would have gotten.
It seems to me that this decision is like a BET.
If we take the smaller pension we are betting that she will die (within the next five years) and that I will become very sick.
Any thoughts ? We have to decide on this soon.
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