I'd take a cash payout, which would mean losing 50% in taxes/penalties/general reduction of value. So $100,000.
If I was still working I'd still be up north. So I'd sell my house, use the proceeds to buy another house in a less expensive area, use that $100,000 to make any necessary improvements, maybe buy a new(er) car, and live on my social security checks. The fact that I have a working spouse (in your example) means we'd be living on much more than just my social security checks, so that's perfect. If he dies, I still have my own SS checks, if I die, well - he's still working and THEN will have his own pension and SS and the house and my new(ish) car. So he'd come out way ahead of the deal.
|