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Caught in the middle
Old 01-05-2013, 02:29 AM   #1
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Caught in the middle

I just accepted a 6 month voluntary layoff at my job. After 18 years they gave us older employees a chance to save the younger ones with families. Yes I did it for 1 of them but also for ME. I have also looked into a 72t and crunched #,s to see if I might roll right into a retirement at 55. I turn in March. My company does not let you touch your money in my 401k until your 59 1/2. After crunching#,s it may be a little tight but definitely possible. Last day today excited. I keep thinking I have 30 years left with 15 being quality. I dont want to give up 4 more years of my life. Talk at me. im listening!
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Old 01-05-2013, 02:35 AM   #2
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So what is your question?
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Old 01-05-2013, 02:46 AM   #3
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Hi

To answer your question honestly. I dont know what to do
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Old 01-05-2013, 05:07 AM   #4
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Hard to say how much money is enough. But one things for sure. You have a finite amount of time left.

I left at 55. I would have been a lot richer if I stayed till 60. But like you I didn't want to give up the years.
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Old 01-05-2013, 06:14 AM   #5
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Originally Posted by Lazarus View Post
Hard to say how much money is enough. But one things for sure. You have a finite amount of time left.
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Old 01-05-2013, 06:19 AM   #6
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Originally Posted by snapdog2 View Post
To answer your question honestly. I dont know what to do
Among other things, I'd spend some time here learning stuff. (I have sure learned a lot!!). Read, run retirement calculators, figure out your expenses/taxes etc. Learn as much as you can about investing. Beware of 'advisors'; second guess everyone.

You say that your company won't let you touch your 401k until 59 1/2. I think you need to better understand your options (including an IRA rollover).

Remember that you have SS on the horizon as an additional income source and there are (fun) part time jobs out there to supplement.

I do think your comment of "30 years left, 15 being quality" is spot on! Enjoy!

God Bless on your willingness to save younger workers with families.
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Old 01-05-2013, 06:27 AM   #7
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Snapdog, have you run your numbers through FireCalc? Do you have any funds in taxable accounts? Do you have any equity in a home that you could use?
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Old 01-05-2013, 07:59 AM   #8
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You need to look at the specifics in 401k plan documents, But some option might be

1. Take a loan and pay it back, check the other "hardship" withdrawal options

2. Roll to IRA, then 72t. I dont think they can prevent a rollover if you're let go ( lay off )
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Old 01-05-2013, 08:09 AM   #9
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Get a copy of your company's Summary Plan Description for the 401k account. Study it and then talk to the 401k administrator/custodian. Learn what your options are under the plan and under the law.
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Old 01-05-2013, 08:20 AM   #10
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It sounds like you have six months to decide what you want to do. I'd treat that as a miniretirement and see how it goes, financially and what you do with your time (which may have an impact on the financial side of it).

Were you already planning to retire at a certain age? Have you run numbers for that possibility?

I agree that you need to check further into the 401K possibilities--hard to believe you can't take it with you, as it were, to roll over into an IRA should you decide to retire at the end of your sabbatical.

But I do commend you for stepping up to take the six-month layoff so someone with young children can keep his/her job.
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