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Hi, I am Guzzi and always need advice
Old 10-06-2012, 06:51 AM   #1
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Hi, I am Guzzi and always need advice

I would like to take ER in a year or two. I know I should probably keep working. But I would really like to get out. My biggest thing will be insurance. Oh, I will be 57 next weekend. So I will need to find a decent insurance for my wife and myself. I have a pension and a 401k. I feel like we can live off my 401k for probably 4 years and not touch my pension. I am also not sure what percentage of taxes I will have to pay.

Thanks, guzzi
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Old 10-06-2012, 07:13 AM   #2
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Hi Guzzi, welcome to the forum. You can talk with an agent to see what your health care options are right now. This web site is also helpful The Henry J. Kaiser Family Foundation - Health Policy, Media Resources, Public Health Education & South Africa - Kaiser Family Foundation and here is a recent thread that covers some aspects of the PPACA. Patient Protection and Affordable Care Act
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Old 10-06-2012, 07:27 AM   #3
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I feel like we can live off my 401k for probably 4 years and not touch my pension.
Welcome, Guzzi. The young wife and I typically think of it the other way around -- we can live off the pension and not touch the 401k. That way, we can just spend cash as it comes in the door rather than liquidating investments in the 401k and then thinking about how to reinvest the new cash coming in from the pension.
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Old 10-06-2012, 07:33 AM   #4
Confused about dryer sheets
 
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Welcome, Guzzi. The young wife and I typically think of it the other way around -- we can live off the pension and not touch the 401k. That way, we can just spend cash as it comes in the door rather than liquidating investments in the 401k and then thinking about how to reinvest the new cash coming in from the pension.
That sounds good. With my pension, I would be penalized and taxed if I touch it before 59 1/2. So the best for me to start out with is living off my 401k. Which would end up being somewhere around 1 1/2 years. My problem is I have not spent much time learning the best way to retire.
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Old 10-06-2012, 07:44 AM   #5
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With my pension, I would be penalized and taxed if I touch it before 59 1/2.
A good reason for doing it the way you plan. We decided to take the hit on the early pension, because it does not get cola'd while we wait (there is a minimum COLA adjustment, regardless of actual inflation) and we need to be taking the pension to get the retiree health care.
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Old 10-06-2012, 08:39 AM   #6
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Originally Posted by Guzzi View Post
I would like to take ER in a year or two. I know I should probably keep working. But I would really like to get out. My biggest thing will be insurance. Oh, I will be 57 next weekend. So I will need to find a decent insurance for my wife and myself. I have a pension and a 401k. I feel like we can live off my 401k for probably 4 years and not touch my pension. I am also not sure what percentage of taxes I will have to pay.

Thanks, guzzi
To be sure, Guzzi, check on the rules of your 401k. Since you are 55, you're ok if the 401k is from your current employer. If you are thinking of tapping a different 401k (from an old job), you'll need to do more homework. Won't repeat it here since I sense you are long term with this job and this 401k is for your current job, which would be OK.

Many of us have healthcare concerns. The costs can be all over the place. Whatever you do, don't underestimate them.
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Old 10-06-2012, 10:01 AM   #7
Confused about dryer sheets
 
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To be sure, Guzzi, check on the rules of your 401k. Since you are 55, you're ok if the 401k is from your current employer. If you are thinking of tapping a different 401k (from an old job), you'll need to do more homework. Won't repeat it here since I sense you are long term with this job and this 401k is for your current job, which would be OK.

Many of us have healthcare concerns. The costs can be all over the place. Whatever you do, don't underestimate them.
Thanks Joe,

Yes it is current from a long term job. My wife is drawing a little spending money off her 401k. She worked 23 years then came home. We don't even figure that into a portfolio. We have an excellent health care plan that I can keep and pay half. But that half is about 600 a month. So thought I might be able to find something decent a little cheaper.
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Old 10-06-2012, 11:18 AM   #8
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Originally Posted by Guzzi View Post
Thanks Joe,

Yes it is current from a long term job. My wife is drawing a little spending money off her 401k. She worked 23 years then came home. We don't even figure that into a portfolio. We have an excellent health care plan that I can keep and pay half. But that half is about 600 a month. So thought I might be able to find something decent a little cheaper.
Just double check that you can withdraw from your 401k penalty free before you are 59 1/2 since you are more than 55 when you end work. Many plans allow this but some do not.

$600 a month is a great deal for an "excellent" health insurance plan, but it still would make sense to shop around as if you were not going to use the employer health care plan and go on your own to get rates for comparison. My high deductible HI is almost $600 a month and many people on the boards pay more - much more - and some pay less - it seems to vary dramatically by state.
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Old 10-06-2012, 11:22 AM   #9
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Thanks Joe,

Yes it is current from a long term job. My wife is drawing a little spending money off her 401k. She worked 23 years then came home. We don't even figure that into a portfolio. We have an excellent health care plan that I can keep and pay half. But that half is about 600 a month. So thought I might be able to find something decent a little cheaper.
600 for both of you? That's good, especially if the deductible is reasonable.

We have a good current discussion going on here Health Insurance Increase

The upshot is it seems a lot of people are in the 15k to 25k range for 2 people, depending on the plan. This includes premiums and potential maxed deductibles. (Plan for it, hope you don't need it.)

The plan I have access to is estimated to be about 20k next year.
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Old 10-07-2012, 01:46 AM   #10
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Hello, Guzzi. Welcome.
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Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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