HomesteadDreamer
Dryer sheet wannabe
- Joined
- Dec 25, 2013
- Messages
- 24
Hello,
I have been looking at this forum for a little while now and decided to finally introduce myself and seek some advice. I have a plan in my head, but not sure if it is the smartest way to go...so, any advice would be appreciated. Here's my story:
I'm retired military and currently get an after-tax pension of $2700/month which is adjusted each year to be close to the inflation rate. My wife is currently in the military and getting close to retirement, but she is in the Guard and will not get her pension until she is 60. I am currently 42 and she is 40.
We both currently work full-time and will for the next few years. However, I hope to retire completely when I turn 52. I'm currently in a Federal position and will qualify for another (albeit small) pension once I hit 10 yrs. At that point, I expect that we will have approximately $650K in a mix of 401K/Roth IRAs.
What I am thinking about doing is using a portion of that $650K (~$500K) and take out 79T distributions for about 10-12 yrs to give us some steady income until my wife's pension comes in and we are eligible for SS. After that, we would take the remaining balance and do something else...but, not sure the best strategy at that point...although I know that I do want to draw down the balance over my lifetime so that we can use our money before we die .
We are pretty simple people and want to just settle into a small hobby farm and live a basic, country life, so we don't expect to need more than about $3500-4000/month to live comfortably on.
I know that we will be pretty comfortable once my wife's pension is coming in and we can collect SS. But, I don't want to work until I'm 62+. With all that said, what is the best way to tap into the $650K between the age of 52-62 to give us some income during that period?
I'm just now learning about 79T distributions and like how it gets around the 10% early withdrawal penalty, but I don't know if that is the best option for us. Any inputs/suggestions would be greatly appreciated. Thanks in advance for your help.
I have been looking at this forum for a little while now and decided to finally introduce myself and seek some advice. I have a plan in my head, but not sure if it is the smartest way to go...so, any advice would be appreciated. Here's my story:
I'm retired military and currently get an after-tax pension of $2700/month which is adjusted each year to be close to the inflation rate. My wife is currently in the military and getting close to retirement, but she is in the Guard and will not get her pension until she is 60. I am currently 42 and she is 40.
We both currently work full-time and will for the next few years. However, I hope to retire completely when I turn 52. I'm currently in a Federal position and will qualify for another (albeit small) pension once I hit 10 yrs. At that point, I expect that we will have approximately $650K in a mix of 401K/Roth IRAs.
What I am thinking about doing is using a portion of that $650K (~$500K) and take out 79T distributions for about 10-12 yrs to give us some steady income until my wife's pension comes in and we are eligible for SS. After that, we would take the remaining balance and do something else...but, not sure the best strategy at that point...although I know that I do want to draw down the balance over my lifetime so that we can use our money before we die .
We are pretty simple people and want to just settle into a small hobby farm and live a basic, country life, so we don't expect to need more than about $3500-4000/month to live comfortably on.
I know that we will be pretty comfortable once my wife's pension is coming in and we can collect SS. But, I don't want to work until I'm 62+. With all that said, what is the best way to tap into the $650K between the age of 52-62 to give us some income during that period?
I'm just now learning about 79T distributions and like how it gets around the 10% early withdrawal penalty, but I don't know if that is the best option for us. Any inputs/suggestions would be greatly appreciated. Thanks in advance for your help.