Also ask them if they can prepare a statement for you comparing what they estimate your income would be if you retired now versus at age 62. Even if they can’t do this they can give you the information so you can do it yourself.

To decide: run the numbers comparing early retirement to waiting. You will have 25% less, but you will have that amount for five extra years and can invest it, be sure to also count the investment RETURNS onward past the point you WOULD have retired … until when you think you might need it (and maybe consider it an emergency fund). Consider if the retirement system has cost of living increases and how long it would take those increases to make up the difference of that 25% reduction.

A way to make this clearer is to lay out both choices with annual pension income over 15 or 20 years, calculating the amounts and COLA increases. Then compare the two and see how much more or less each alternative totals over time.

I chose to take an early retirement after running these numbers because there was not very much difference – but I actually retired. You will continue working and might even choose to work beyond age 62 so this could turn out to be a nice side investment.

Another factor I missed in my own calculations is something called Windfall Elimination Provision. WEP is a provision in Social Security that prevents you receiving both a government pension and social security. Not entirely, but effectively. So even though I worked enough years to qualify for a Social Security pension estimated at around $900+ a month, WEP will restrict what I can collect to less than $200 a month – a significant difference.

If you were planning to collect Social Security as well as the FRS pension you need to plan carefully. Maybe delay collecting Social Security as late as possible so that the amount is higher (the later you start collecting benefits, the greater the benefit amount). You should already be getting an annual statement of estimated benefits from Social Security, and if not then contact them and ask to get one. It will clarify that part of the equation a lot.

After you have calculated everything you can, set it aside for a week or two. When you take another look at it talk it over with a friend or financial adviser. Very often in explaining and discussing things with someone else they see aspects that you have overlooked and it can help a lot just to talk it out with someone before making a decision. Good luck!!

If I were you I would not take money from a retirement account to pay a tax debt, because of the early distribution penalty involved. The interest and penalties on tax debt aren’t more than you would expect to pay on a consumer loan. Nevertheless, I would make paying it off a very high priority.

Good luck in the future. You have a great attitude and it sounds like things are looking up for you.

I’ve been in your situation too where I rented rooms in my house out. It’s more than just the cost of paying my mortgage. I did all the upkeep and yard work too. Another person adds more maintenance. Your washer/dryer is being used more, the floors and carpets are being walked on more, doors are being opened and closed more, another pair of hands touching the walls (ie, the dirt that accumulates around light switches). If he only needed a place for a month or two, no biggie. But an extra person in a space for a year or so will make a difference.

Look for weekly rates and ALWAYS get unlimited mileage. Another thing to look for is vehicle model. On most trips I get the cheapest available, but if you’re going to be putting a lot of hours into driving, it’s a good idea to step up from economy. An economy car from an inexpensive company like Fox or Budget will likely not have cruise control or some other features that can make driving a lot more comfortable for just a few dollars more per day.

If it’s four or less, hotels are hotels and while I’m all for getting a good deal, you do get what you pay for. I enjoyed being on Disney property and felt their hotels do cater a bit more to kids than I’ve seen at other places, but you’re paying for that. The condo we rented off property was in a time share and was slightly more than a hotel room but also had a kitchen and similar advantages to the rented home. I’ve also had friends who said they went to the campground and found it a great value with a rented cabin (trailer? can’t recall specifically what they stayed in but they like it) and I’m thinking if we ever have grandkids we may try that option. Hope that helps if you’re planning a repeat visit.

In my opinion, if you want to create the spark for change, you have to start changing…even if it sucks at first. If there’s something you really want, but you have to sacrifice in order to get it, that’s going to be difficult. And it’ll be easier to do nothing, as Trent suggests, but that doesn’t get you any closer to what you want.

Make moves, educate yourself as much as you can about what it is you want, and how to get there. Then work through the pain of beginning. Once you find a little momentum, if it’s something you really do want in life, the spark will surely follow after you’ve gain some small successes.

Nothing worth doing is easy. Not really. And the people who have what they want in life are the people who are willing to go after it, no matter how difficult it might be initially. Waiting around for something to happen to you is worthless advice. There are plenty of people who wasted their entire lives waiting. Don’t be one of them.

Need inspiration? Visit my blog. You might be inspired. (You might not.)

I would absolutely raise the rent. Unless the boyfriend would live in the bedroom and never come out, you definitely notice the difference.
I lived with two other people in an apartment for a while, and then one of them added an extra person to her bedroom. It might not have affected the rest of our sleep, but having another person using the kitchen, bathroom, and living room made a very noticeable impact on the rest of us.
I think somewhere in between her current rent and double it is fair, as it recognises that they are sharing the room space, but will both be using the rest of the house.
I doubt utilities would go up much, unless he is home during different parts of the day than the two of you already are, but that should definitely be split equally between all occupants.

As another commenter said, there are exceptions to the requirement that you pay taxes on forgiven debt, and if you are unemployed and have no assets other than a 401(k) or IRA, you may qualify. (Basically, if you are insolvent and were incapable of repaying the debt that has been forgiven, then it may not be considered taxable income to you.)

Also, if some of these debts truly are your ex-boyfriend’s and you can prove it, have you considered making a legal demand that he pay his share?

Q2, Jill, here’s a formula you could use to arrive at a reasonable rent for your roommate and her boyfriend:

Call the entire square footage of the house TA (Total Area). Call the Bedroom & closet you and your tenant each occupy and your respective separate baths if any EOA (Exclusive Occupancy Area). Yours is LEOA and hers is TEOA (Landlord and Tenant). Call the common areas of the house SOA (Shared Occupancy Area). Call the fair market rental value of the whole house FMRV. This is what you could expect to collect if you were to rent the whole house to a tenant.

Your roommate’s new rent could be calculated this way:

Divide FMRV by TA to arrive at FMRV per square foot. (If your house would rent for $1,200 a month and has 2,000 square feet, this would be 60 cents/month/square foot.

Then add the TEOA to (SOA x 2/3). If your roommate’s separate bedroom/closet/bath is 200 square feet and yours is the same, then the shared areas are 1600 square feet, this would be 200 + (1600 x 2/3) or 200 + 1067 = 1267.

Multiply that by .60 = $760.20. That would be a reasonable rent.

As you can see, this splits the FMRV of the house (what you could collect if you were renting out the house to someone else) in such a way that each pays 100% of the per-square-foot rent for her exclusive area and splits the rent for the shared areas among the people using them.

I would split three ways any expenses that a tenant would be expected to pay if you rented out the whole house. This would include utilities, household supplies, minor repairs and possibly yard care, but not repairs that a landlord would usually expect to pay if the house were rented out as a whole.

Q2 Jill : I would make sure you check out landlord tenant laws in your area. Sometimes charging per person is illegal as it can be viewed as discrimination against families. However since it is your own home the landlord rules may differ. Just make sure you check the rules in your city / state and make sure you’re doing everything legally. I think splitting utilities 3 ways is entirely fair. Personally I wouldn’t raise the rent.

Q6 Marjorie: If you’re already vested in the benefit then I can’t see Florida cutting your pension. I’m not sure that would even be legal in any way. Generally its not legal but states have different rules on their govt. pensions. If they did try it then I’m sure they’d get sued big time. Personally I wouldn’t worry about it. Also if theres any chance they’d do it then you’d get hit by it in any case either this year or next or a few years from now.

Q8 Jeff : You owe taxes on work you do. Its really not much different than any other income. You would have to pay self employment taxes yourself though which are normally taken out by an employer. Do you want to make more money or not? If you want more money then you owe more taxes.

Q9 Andy : Every major rental company I now of allows you to drive to other states. They also will have options to do a one-way rental. If the car rental company in question doesn’t allow you to take a road trip then find another company. Driving to Mexico is a very different matter.