I expect to retire Spring of 2011 when I turn 66, but spring of this year (at 65) I will begin to draw a Teamsters pension of about $1300.00 monthly. Where shall I put that money for the next several months to lessen my tax burden for next year. Any suggestions would be welcome.

Do you think you'll need the money in the next year, once you retire? If so, then I suggest you just park it in either cash or a short-term bond fund. If you can let it sit for a few years, you might want to think about funding an IRA - you can invest up to $6K this year - $12K if you fund an IRA for your wife. If you invest in a traditional IRA the amount you invest is deducted from your income for tax purposes, so you effectively pay no tax on your contribution.

Thank you for the info. As I begin to collect these funds May of this year (2010), I won't actually need to live on these funds until May of next year (2011) when I retire fully