This is a good question and the answer has several sides. The technically correct answer depends on the economics of you particular plan as it relates to your investment strategy and expected return. To get that answer, you either need good spreadsheet and finance skills or you need to higher a consultant. Neither is likely practical for $6,500. You may be able to get some help from the HR department of you new employer. The practical answer is that if you broadly diversify your rollover IRA among a few low-cost index mutual funds, you should theoretically come out ahead of buying the extra years of credit. However, very few investors actually do this in the real world. Investors get too aggressive in good markets and too conservative in poor markets. Investors incur excessive fees and make lots of mistakes. In short, most investors would do better buying the extra service credit. So you must decide, are you among the few who will use a sensible, consistent, low-cost strategy over the remainder of your life? Or will you invest like most people and get terrible results? The answer to these questions will tell you what you should do.

The costs of retirement residence living vary greatly and are based on the level of care required, the meal plans and the amenities and activities available. Costs will vary from residence to residence (even within the same municipality) and range from $2,000 to $6,000 a month. Purchasing a condo is also becoming more prevalent and most start at $250,000 with additional monthly fees starting at about $1,500.