{"id":97687,"date":"2012-10-08T04:36:39","date_gmt":"2012-10-08T08:36:39","guid":{"rendered":"https:\/\/friendburst.com\/blog-new\/97687\/security-relief-now\/"},"modified":"2012-10-08T04:36:39","modified_gmt":"2012-10-08T08:36:39","slug":"security-relief-now","status":"publish","type":"post","link":"https:\/\/friendburst.com\/blog-new\/97687\/security-relief-now\/","title":{"rendered":"Would You Take Security Later for Relief Now?"},"content":{"rendered":"

Ah, what a dilemma I face.\u00a0 It\u2019s a classic example of having to chose between security in the future versus the needs of the present.<\/font><\/p>\n

\"\"From 1993 until 2010, I worked for the same big national corporation.\u00a0 There were a few years in that 17 that I went and did other things, but for most of my adult working life, I was loyal to one employer.\u00a0 For the first half of that career, while I worked for that company, I earned a benefit that is unheard of nowadays, a pension.<\/font><\/p>\n

The corporation discontinued the pension benefit back in 2003, but that didn\u2019t do anything to what I had already earned.<\/p>\n

These days, companies contribute to 401K\u2019s for your retirement, but back in the closing days of the 20th Century, I was still earning a promise for some money when I retired.\u00a0 Eventhough this company unfairly terminated me a couple years back, it\u2019s kind of been a comfort to me knowing that once I turned 65 years old, this big company would be sending me $275\/mo for however long I lived after that.<\/p>\n

This week, I got a tempting offer from that big corporation.\u00a0 I can cash out my pension for $10,000 cash right now<\/strong>.<\/p>\n

When you look at the pure numbers, this is a stupid offer.\u00a0 $275\/mo equals $3300 per year.\u00a0 $10K equals three years of payments I\u2019ll receive 23 years from now.\u00a0 I hope to live older than the age of 68.\u00a0 If I look at this long term, $10K at 42 (which actually ends up being $7K because it will get taxed at 30% by the gov\u2019t) versus $275\/mo at 65 is a no brainer.\u00a0 I should hold off for the pension.\u00a0 It could mean the difference between being able to feed myself and abject poverty in my golden years.<\/p>\n

But\u2026<\/em><\/p>\n

Oh, man, I could SO use that money right now.\u00a0 I\u2019m kinda stuck.\u00a0 My monthly expenses exceed my fixed monthly income.\u00a0 Every month, I live on the edge of being broke all the time.\u00a0 The cable & internet gets shut off all the time.\u00a0 I have to take out payday loans or pawn my personal belonging in order to buy groceries.\u00a0 I get by, but have no opportunity to get ahead.\u00a0 I didn\u2019t plan this; my income got cut by my employer by 35% back in February, and although I could go find a new job, that is an entirely different discussion.\u00a0 As I said, I worked for the same company for almost 20 years; I\u2019m not the job-hopper type.<\/p>\n

So, first of all, the money could give me a little cushion where I wouldn\u2019t have to take out short term loans at 400% APR to make ends meet.<\/p>\n

<\/font><\/p>\n

Here\u2019s what else I might do:<\/font><\/p>\n

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