Ahh, pension payout.

iVillage Member
Registered: 09-20-2004
Ahh, pension payout.
3
Fri, 06-02-2006 - 4:20pm
When dh left his job, he opted to take the payout on his pension. It would have paid $17 /mo after age $65. Since this isn't money we put anything into, we agreed to just take the payout, while leaving his 401K in tact. Well, I got the check today, and the taxes were taken out (penalty for early withdrawal, though) and i sighed a big sigh of relief. $3500. Is it a lot of money? Well, not really, but it means we will have the money to move back to Wisconsin. It will cover our moving expenses and a few weeks off of work. We are setting aside half of the money from my paychecks, once dh gets paid, to build up a little fund, too, in case things wind up being as chaotic up there as they have been here.
Every once in awhile, i feel like we were in better financial shape when we were earning about half the money we are now....we had less debt (two car payments, expenses related to moving back and forth have taken their toll), but alas, we had no pensions or 401ks back then either. I hope things get easier for us sometime down the road. we have definitely been plugging away at it.
I am relieved. You guys have all been a big source of support for me...I really mean that. It is hard when you are not seeing eye to eye with family....I'm a bit alone in that respect.
Hopefully, when the time comes, dh will be able to find a job and we won't end up too far back from where we started. Before we move, our cc debt should drop below 20K. It hasn't been lower than that in four years. We have struggled. But there is something to be said for keeping at it...I am a big emotional spender. The rollercoaster I have been on for the past four months has not gotten the best of me. this is the first time in my adult life that i can say that. The debt has continued to go down. the charge cards have been put away. I found other ways to console myself this time around. Perhaps i am learning and there is hope after all.
Anyhow, i know cashing in a pension doesn't make sense for a lot of people, but this is truly a blessing for us. It means maybe we can get our lives back.
Thanks so much for listening to me ramble.
Heather
iVillage Member
Registered: 08-13-2003
Fri, 06-02-2006 - 6:06pm

Heather, what a blessing to have that money come through for you at this time! :-) I can sense your relief in your post. I'm really happy for you and hope that this is the beginning of wonderful things for your family!!

Amy

iVillage Member
Registered: 03-27-2003
Sat, 06-03-2006 - 11:37am

Don't sweat it about taking out the pension. You guys do need that money to get your life organized right now, so it is money well spent. It isn't like you took it out to go on a vacation or something. It sounds like you are at peace with moving back home to Wisconsin. And you are making progress. I don't know where you started out with your credit card debt, but to get under a milestone like $20K if it hasn't been under that in four years is a huge, huge, accomplishment and you need to keep reminding yourself of that. I am an emotional spender too, and with all you have gone through lately you should be very proud of yourself!

Heather

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Sat, 06-03-2006 - 12:33pm

I agree w/the other poster.

You've come a long way. Don't feel bad about cashing out 401K. It sounds like you guys have a good, and much needed use for it.

MYM