Options

As of today, I will have certain options available to me in two years. I will be eligible for my full retirement benefits in two years. That doesn't mean I will put in my retirement papers in one year, eleven months and twenty-nine days (who's counting?) but, I will have options at that point.

As of today, unless things drastically change, I will probably work another six years and then go into what the Florida Retirement System calls the DROP program. It's a deferred retirement program where I will officially retire. I will be able to continue to work at my current job for (at least one month, but up to) five years (teachers can work for six years). At the end of the five years I will leave my job. While I continue to work, my retirement pay will go into an account where it will accrue interest until I have completely retired. At the end of five years, I should have in excess of $100K in my account. The amount will be determined by the average of the last five years of salary. There is a formula that goes along with it, but you don't really care about that, I'm sure.

As I understand the program, I have to retire by age 57 or lose the option of going into the DROP (I think it has something to do with being able to get SS at age 62). I don't have to DROP, but I feel that it would be foolish not to take advantage of the program. After all, $100K is $100K.

What I mean about options is that once I reach the target date of September 1, 2007, I will be able to retire or go into the DROP at any time. If I retire, I'll have my full pension every month. If financially able to, I won't have to work, which is of course everyone's goal. I might work part time or I might start a new career. Who knows? The thing is, I'll have options knowing that I'll have my retirement check coming in. Of course, if I DROP, I'll have the comfort of knowing that I have money going into a retirement account that is mine. $100K isn't much in the grand scheme of things, but, knowing I have that account, plus my monthly retirement check, savings, some investments, and when I reach SS age, I'll have that check coming in. Still not enough to go wild on, but it my health holds out, I should have a comfortable retirement at an early (sort of) age.

It's a good feeling to know that you have options. Even if they are two years away.