Found Money: I get a pension!!

[catherine]

I worked for a large multinational company back in the 80s. I was only there for 3 years before we moved to New Jersey. Not the best experience. In fact, I hated it. Was glad to leave.

About a year ago I started getting literature about pension benefits, but I ignored it. Another company has taken it over, so I thought they were just sending out blanket information to everyone that worked there at one time or another.

So a few weeks ago I gut another letter, so I thought, why not call them up and just make sure I'm not getting anything. As it turns out, I get a pension! A whopping $46 a month! Not much, but I'm psyched! Better than nothing! I'm planning on just putting it in a savings account and not touching it unless I have to. Otherwise, maybe it will help a wee bit with grandchildren's college or something.

What would you guys do with a $46 monthly "windfall"?

[Tybee]

I worked for a large multinational company back in the 80s. I was only there for 3 years before we moved to New Jersey. Not the best experience. In fact, I hated it. Was glad to leave.

About a year ago I started getting literature about pension benefits, but I ignored it. Another company has taken it over, so I thought they were just sending out blanket information to everyone that worked there at one time or another.

So a few weeks ago I gut another letter, so I thought, why not call them up and just make sure I'm not getting anything. As it turns out, I get a pension! A whopping $46 a month! Not much, but I'm psyched! Better than nothing! I'm planning on just putting it in a savings account and not touching it unless I have to. Otherwise, maybe it will help a wee bit with grandchildren's college or something.

What would you guys do with a $46 monthly "windfall"?

Oorah!

I'd open an account especially for that money and have it auto deposited. Maybe a RothIRA? Then I would not touch it for anything. Get that money compounding for you! Maybe add to it with other money. I would not consider it grandchildren college money at this point.

It is your old age pension money, and that is great to have!!!!!

[Lainey]

That's a nice bonus - about $500/year you didn't know you'd have. I agree with just letting it accumulate. Good news!

[gimmethesimplelife]

I think that's really cool!!! Catherine, seriously, I could think of things to do with that $46 extra a month.....you could start an account with Stash if you have a smartphone and put that $46 a month into the stock market with low fees and watch it accumulate over time for example. You could donate to a charity you believe in. If you are into growing your own food this would be enough to pay for seeds and fertilizer and secondhand gardening tools at a thrift shop or yard sale. You could save it up over time and do some minor travelling perhaps - or save it for a few months and become a member of a museum or public garden or some such and get admission covered any time you want to go for a year....there are so many other things you could do, too....these are just off the top of my head. Congrats!!! Rob

[lmerullo]

I am so financially conservative that my first thought would be direct deposit to savings. But now I've seen Ron's response, I love the thought of being adventurous with it! Find something each month or two to just blow it on...I don't mean blow, but you know, enjoy on those life enhancing little things. I think it would be super fun to search out new things to earmark the windfall funds to.

[rosarugosa]

That is great, Catherine! I'm in the save it camp, since I know you are concerned about lack of retirement savings. A mere $46. doesn't seem like much now, but let it build up, and when you are retired on a fixed income, it could mean the difference between being able to visit the sons in VT or not (as one example).

[lmerullo]

Sorry, Rob. For some reason, I can't edit my post.

[razz]

I am in the save camp as I think that we are in for some very stormy weather in the years ahead; too much turbulence in the world and no country or person is immune.

[gimmethesimplelife]

I am in the save camp as I think that we are in for some very stormy weather in the years ahead; too much turbulence in the world and no country or person is immune.Yes, I agree with you 100% as to no country or person being immune. There is a very old Bette Davis movie that was iconic for a generation of older gay men - I think the title is All About Eve? Marilyn Monroe had one of her first speaking parts in this movie but that's besides the point. Bette Davis has a famous line in this movie - Fasten your seat belts, it's going to be a bumpy night - I'm of the opinion this applies in the years ahead, yes. Rob

[Rogar]

Free money is never anything to sneeze at. If it were me, it would just go into a general savings or cash fund, but I would feel better about buying something special if it might come around.

[SteveinMN]

Or take a month or two of the $46 and buy something you've long wanted but couldn't afford (or couldn't justify) and bank the other 10-11 months.

Congratulations on the found funds!

[Teacher Terry]

That's great!

[iris lilies]

Catherine, I have a similar story, but sad! Haha, sort of.

i worked a long time ago in a pension environment and was vested. Several years ago I started getting mailings from this previous employer which I sort of skimmed and then tossed. DH suggested that i should pay better attention, but i didnt. Then, i retired from work and gathered up financial records for careful review and am still working through stuff, including will/trust, investment accounts, etc two years later. We have too many damned accounts. But anyway.

I contacted this prior employer about when to draw this pension and their answer was "dude, you were elIgible years ago, you should have taken it then, start it NOW because you are losing money every month." It is about $230 a month.

So that is the sad part, i aint gonna tell you how much I lost by not taking that monhly amount but it was in the thousands. Doh. Rememer when I mentioned some time ago my financial errors? Well, this was a big one.

DH and I can save money like fiends but i dont think we are especially savvy when it comes to investing, account management, and etc. DH is more on top of things than I [was], in the years I was working my Standard operating Procedure was to throw money onto investment accounts and pay no further attention to them. That has worked well and we are fine, but we could have been MORE fine if I had done a few things differently.

[ApatheticNoMore]

Ok my first thought is I'd use it to pay a utility bill when I retired. Ok that has to be the most boring answer ever given, but if not retired I may save it yea (most investments need a $100 minimum deposit at a time though).

[Teacher Terry]

IL: what a bummer that you lost out on the $. Oh well better late then never.

[nswef]

Iris Lilies, You and I have the same mind set...I keep thinking I should pay more attention but it's like looking at insurance, my mind goes blank. Sorry you lost so much money, but happy that it wasn't devastating. I think of all the people whose companies were bought out and the pension was wiped out in the sale. I don't hear much about that now, but one of the recessions it was a big news item around here.
As for the $46 pension, I'd save it for something fun.

[iris lilies]

IL: what a bummer that you lost out on the $. Oh well better late then never.
I know! It is a cautionary tale.

Some day when I am bored Iwill share this story on the Mr.Money Mustache site, they will love to sling face punches my way. It will get thhem riled up, will get their adrenaline going!