I talked with the NYS Pension people today to get my estimate.  They tell me that my Tier 2 , 36 month average is about $188,000, of which I will get 64.16% with the 1/60 added.  That leaves me with an annual pension of approx. $120,000.   They sent me a list of the options available to me to pick from.  I don't know if NYC offers the same options.  1. Single Life Allowance  2.  Joint Allowance (100-75-50-25%)  3.  Pop-Up Joint Allowance (100-75-50-25%)  and the 4.  5 or 10 year Certain.   I am pretty certain that I won't make it 75 years old (male family history dictates), I'm 56 now and my wife (58) just survived a major open heart surgery and a bypass surgery.  I'm pretty sure her life expectancy has dropped significantly due to it.  I know that one or two of these options is based on your birthdate and actuary tables.  I already have a 250K$ insurance policy on myself and my wife has a 100K$ on her.  Due to her med history she will not be able to get new insurance or increase what she has already.  
Now that I am walking out the door in 2 months, I was wondering what options you dinosaurs went with and why.  What do you think I should consider.  I have a meeting with my Financial Planner in two weeks to get his input.  I'm pretty sure he is licking his lips , hoping that I will invest my deferred comp $  with him.  He already has 500K$ of my wifes 401-K.  If I take the Single Life Allowance, it will be about 10K$ per month before taxes.   If I take any of the Pop-Ups, it will be about $9300 a month.  
Let me know your thoughts.   ** I am starting to look at other states to retire to maximize my money.
I just remembered.  They also offer Lump Sum Payouts  5-10-15-20-25%.  that equates to 73k, 147k, 220k, 294k, and 368k.  I would have to pay taxes on it and take a reduced pension.  I still have a 300K mortgage.

movnviol1 wrote: ↑

8:14 PM - 1 day ago

I talked with the NYS Pension people today to get my estimate.  They tell me that my Tier 2 , 36 month average is about $188,000, of which I will get 64.16% with the 1/60 added.  That leaves me with an annual pension of approx. $120,000.   They sent me a list of the options available to me to pick from.  I don't know if NYC offers the same options.  1. Single Life Allowance  2.  Joint Allowance (100-75-50-25%)  3.  Pop-Up Joint Allowance (100-75-50-25%)  and the 4.  5 or 10 year Certain.   I am pretty certain that I won't make it 75 years old (male family history dictates), I'm 56 now and my wife (58) just survived a major open heart surgery and a bypass surgery.  I'm pretty sure her life expectancy has dropped significantly due to it.  I know that one or two of these options is based on your birthdate and actuary tables.  I already have a 250K$ insurance policy on myself and my wife has a 100K$ on her.  Due to her med history she will not be able to get new insurance or increase what she has already.  
Now that I am walking out the door in 2 months, I was wondering what options you dinosaurs went with and why.  What do you think I should consider.  I have a meeting with my Financial Planner in two weeks to get his input.  I'm pretty sure he is licking his lips , hoping that I will invest my deferred comp $  with him.  He already has 500K$ of my wifes 401-K.  If I take the Single Life Allowance, it will be about 10K$ per month before taxes.   If I take any of the Pop-Ups, it will be about $9300 a month.  
Let me know your thoughts.   ** I am starting to look at other states to retire to maximize my money.
I just remembered.  They also offer Lump Sum Payouts  5-10-15-20-25%.  that equates to 73k, 147k, 220k, 294k, and 368k.  I would have to pay taxes on it and take a reduced pension.  I still have a 300K mortgage.

Wont you also get hit with that 10% penalty before age 59 1/2?

Shop Life Insurance, Do not take any of the Pop-Ups or Options unless you are ill or I uninsurable. The best Whole Life Rates in the country if you are Catholic is the Knights of Columbus, Allstate has things called Variable and Universal Life where you can designate a percentage Whole Life and another percentage 20 or 30 year Universal Life which is similar to Term Life but you get residuals on your payments. I have several different policies through several different companies. A very close friend of mine was an Allstate agent and he made me buy the bulk of my Life Insurance at 35 and 40. Even if you are healthy the rate doubles from 40-45.

Also, stay away from CFP’s (Certified Financial Planners) they only want you to invest with them. I have an accounting degree and an economics degree. Your best bet is to see a CPA (Certified Public Accountant) who does not handle investment services or a Lawyer who is a CPA that specializes in Estate Planning. You main goal is to pay the least amount of taxes and have your Children/Beneficiaries pay the least amount also.

BTW: SALUD CHIN-DON

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Little prayer to you and your wife.

- Be sure to include a plan that takes care of your spouse in case you pass - too many sad stories of families going broke because the MOS died unexpectedly and left nothing for spouse.  The pop-ups are really not a bad option - I shopped around when retired and the rates on the outside were not that much lower than the city's own options.  Plus, if you have a good 457, then that's your wife's insurance policy right there.  Also, watch this good video on police pension options - click HERE.

- As mentioned before, stay away from anyone who wants to invest your money - they are all scammers looking to make a buck.   They promise to maximize your investments, save you on taxes, blah blah blah.  Don't become greedy - a fool and his money are soon parted.  A lot of those "financial" companies even hire former cops to try and lure you in... thinking you're dealing with a fellow MOS and all.  If you've had a trusted accountant doing your taxes for years, turn to them for advise on tax savings.

- If you can move out of NY, do so.  Your pension will go a lot farther most anywhere else in the US.  Check out the PBA website for a list of current states that do not tax your pension.  Most states consider pensions as income and therefore will tax your pension.  If you live a modest lifestyle, you will never have to work again with the pension you will be getting - and that right there is the best thing about being on the job... enjoy a work-free, stress-free, and long life after.  And, once you hit 62, you are eligible to start receiving Social Security payments on top of your pension.  That's a few more grand in your pocket every month.  

- You can take money out of your 457 with no penalty the day after you retire.  You will pay taxes on the amount withdrawn, though.  But if you're 59-1/2 then you take a certain amount out of 457 without paying any taxes.  The 457 is your ace in the hole when you really need cash for something.  Lastly, enjoy retirement!