Monday, November 28

My Tide is Now A Changin





"There are strange things done in the midnight sun
By the men who moil for gold"

"FREEDOM 55"

Nice ring to that eh? Catchy? You bet, but how many people actually realize this situation wherein a person can quit their day job and move on to something that is of an interest in their lives and not something that simply brings home the bread?

Today, I am fortuante to be in that position, one that may take me to a brand new career - something maybe adventurous - a "Brave New World" maybe?

Yes, after all these years of "moiling for gold" in the workplace, I have decided to hang up my hat and to "stop and smell the roses".

In today's world, people who have been working and paying into a company pension for the past 30 to 35 years now have two doors of opportunity facing them. Door number one is taking the company pension plan and settling into a life of retirement - a sometimes comfortable option. Door number two is similar, however this involves the individual to take out their "commuted value" monies from the pension plan and managing it without the company's hands in on the pie. In fact, with a company plan, if both you and your spouse die, so does that money...well not really, the money goes back into the company's pension pockets. Door number two allows for your hard earned bucks to be given to your estate plans, thus the money is kept with your family and not with the corporate pension fund.

In my fifties now, I have decided to move along with my life, discarding a life-long career and exchanging it for something anew...Some wise advice states that while making this new move you should avoid the "I wish I had or had not..." statements we sometimes catch ourselves making. This is a time to move on and determine what it is that you wish to do with your brand new life.

I must admit, at this stage of the game it is not about money any more - those days have hard passed me by, thank God. Today, is the first day of the rest of my life, or so it is said. Where this new venture takes me, I am looking for things that are fun, exciting, interesting and of course somewhat of a challenge to learn new things, and of course to "stop and smell the roses", carp diem!

3 Comments:

At 8:34 AM , Anonymous Anonymous said...

I do believe that the company you work for does not manage, nor have access to the pension monies. If you die, your wife gets either 50or 60% of the pension depending on the choice you make at time of retirement.
You have not actually stated that you are taking the commuted value, but if you are, I hope your hobby is looking after your monies, because you either have to do it yourself(and hopefully get a good return on it) or you have to pay someone else to do it. Have fun deciding.

 
At 1:25 PM , Blogger Gregory West - Freelance Writer said...

This comment has been removed by a blog administrator.

 
At 10:18 AM , Blogger Gregory West - Freelance Writer said...

Anonymous said...

I do believe that the company you work for does not manage, nor have access to the pension monies. If you die, your wife gets either 50or 60% of the pension depending on the choice you make at time of retirement. You have not actually stated that you are taking the commuted value, but if you are, I hope your hobby is looking after your monies, because you either have to do it yourself(and hopefully get a good return on it) or you have to pay someone else to do it. Have fun deciding.
8:34 AM Gregory West (Writer/Editor) said...

I do believe that the company you work for does not manage, nor have access to the pension monies.

THIS IS CORRECT, THE MONEY IS MANAGED BY AN INDEPENDENT COMPANY.

If you die, your wife gets either 50or 60% of the pension depending on the choice you make at time of retirement.

TRUE AGAIN. You have not actually stated that you are taking the commuted value,

I HAVE BEEN PLANNING THIS MOVE BOTH WAYS FOR MORE THAN FOUR YEARS. I HAVE GOTTEN THE COMMUTED FIGURES SEVERAL TIMES OVER THOSE YEARS AND THIS WEEK I AM AWAITING THE FINAL NUMBERS. THEN I CAN MAKE A BETTER DECISION, HOWEVER MY DECISION CERTAINLY WILL NOT BE MADE ALONE. IN FACT, I HAVE HAD FOUR INDEPENDENT AND SEPARATE FINANCIAL ADVISORS CHECK THESE NUMBERS AND SET FORTH VARIOUS PLANS. THE MOST RECENT PLAN, FROM MY ADVISOR, IS IN THE WORKS AND ONCE THE FINAL NUMBERS COME IN THEN THE FINAL PLAN CAN BE PUT TOGETHER. ONCE THIS PLAN IS SET THEN IT IS SENT OUT, ALONG WITH THE ACTUAL COMPANY PENSION FIGURES, AND ANOTHER COMPLETELY INDEPENDENT GROUP (LAWYER - ACCOUNTANT - FINANCIAL ADVISOR) GO OVER BOTH PLANS AND TELL ME WHICH ONE THEY BELIEVE IS THE BEST FOR ME.

but if you are, I hope your hobby is looking after your monies, because you either have to do it yourself(and hopefully get a good return on it) or you have to pay someone else to do it.

I HAVE NO INTENT TO MANAGE THIS MONEY, AS IT WILL BE SET INTO A BALANCED PORTFOLIO WHICH WILL BE ANALYZED EVERY SIX MONTHS. IT MUST BE SAID THAT ANYONE GOING THIS ROUTE SHOULD BE COMPLETELY DEBT FREE, MAXED OUT IN RRSPS AND HOPEFULLY HAVE A SPOUSE WITH A PENSION INCOME TO BOOT. ANOTHER GOOD THING TO KEEP IN MIND IS THAT IF IS EVEN BETTER IF ONE CAN NOT TOUCH THAT ROLLOVER FUND FOR AT LEAST TWO YEARS, THUS LETTING THE AMOUNT CONTINUE TO GROW.

ONE THING YOU DID NOT MENTION IS THE FACT OF OTHER PENSIONS, SPECIFICALLY, THE CANADA OLD AGE PENSION. WITH OUR CURRENT PENSION FUND THERE IS A ROLL BACK CLAUSE FROM 1969 THAT ALLOWS THE GOVERNMENT TO GIVE YOU THE OLD AGE PENSION AND OUR PENSION MONEY FROM THE COMPANY IS REDUCED ACCORDINGLY, THEREFORE: NO OLD AGE PENSION MONEY AT AGE 65, HOWEVER WITH THE INVESTMENT FUND THERE ARE WAYS TO COLLECT THE FULL CANADA PENSION WITHOUT A PENALTY.

Have fun deciding.

THANKS, I HAVE BEEN AND WILL HAVE FUN WITH THIS DECISION, BUT AS STATED THE DECISION IS ONE THAT HAS BEEN DEVELOPING OVER A LONG PERIOD OF TIME AND NOT ONE THAT CAME WITH THE DROP OF A HAT. THIS IS SERIOUS BUSINESS AND ONE NOT TO TAKE LIGHTLY FOR SURE.

THANKS FOR YOUR COMMENTS AND I LOOK FORWARD TO TALKING FURTHER, ESPECIALLY IF YOU HAVE GONE THIS ROUTE. gregorywest@sympatico.ca

 

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