About 10 years ago, my company stopped contributing to our pension and started contributing to our 401k instead. However, the funds in the pension would remain in the account, with a guaranteed 6% rate of return until retirement. But, now we are being offered a one time opportunity to withdraw the funds in one of 3 ways.
- Cash it out (with a possible penalty + taxes) and invest ourselves. We invest in TD Index Funds today.
- Roll the whole thing over to an IRA or 401k
- Partially roll it over, and take the remaining in cash to invest or add to our EF( again w/ taxes + penalties on the cash).
Also, we have the option of leaving it right where it is.
More information:
Right now I am 53 and my husband is 60. We plan on him retiring in the next 5 to 7 years.
The amount in the account is $91,500.
We also have $885k in 401ks, to which we contribute an additional $2450 every two weeks…and will continue to do so until we retire.
There is also $579k in his pension, plus 6 months of expenses in an EF.
We keep our expenses low and our only debt is a small mortgage, which we are on track to pay off in the next four years.
Right now we are at Coast FI.
So, I am wondering if we should leave my pension where it is, or pull it out to invest more aggressively. Thoughts?