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Old 07-10-2005, 07:48 AM   #1
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Just ran across this site. Looks promising. I was forced out of my job by staff reductions after 35 years. I'm been working part time for a friend. I'm trying to figure out how to keep out of the rat race. My problem is that everywhere I look it seems I'm to young(?) at 54 to access my retirement funds.
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Re: New to site
Old 07-10-2005, 08:22 AM   #2
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Re: New to site

http://www.retireearlyhomepage.com/c...?board=WDRAW59

on the other board discusses this. I am not planning this so I dont know a lot about.
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Re: New to site
Old 07-10-2005, 08:27 AM   #3
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Re: New to site

Quote:
Originally Posted by Rusty Knight
Just ran across this site. Looks promising. I was forced out of my job by staff reductions after 35 years.* I'm been working part time for a friend. I'm trying to figure out how to keep out of the rat race. My problem is that everywhere I look it seems I'm to young(?) at 54 to access my retirement funds.
Why are you too young? And, by how much? There are a lot of ways to
"bridge" the gap until you can dip in. At 54 it should be easy.

JG
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Re: New to site
Old 07-10-2005, 08:40 AM   #4
Confused about dryer sheets
 
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Re: New to site

I'm referring to the taxes/penalties for withdrawing my 401k. Whenever I talk to the company handling it, they confuse me so much I get totally lost. I get the impression that I either have to leave it in until 60 something, or take it all out and suffer severe penalties.
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Re: New to site
Old 07-10-2005, 09:04 AM   #5
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Re: New to site

how long have you been seperated from work? I think a lot of folks wouldnt leave their money in a former employer's 401k and would roll over into an ira, but may be too late. I would do the same since the options and fees are better.
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Re: New to site
Old 07-10-2005, 09:07 AM   #6
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Re: New to site

Quote:
Originally Posted by maddythebeagle
how long have you been seperated from work? I think a lot of folks wouldnt leave their money in a former employer's 401k and would roll over into an ira, but may be too late. I would do the same since the options and fees are better.
Yeah, roll it into an IRA and then start an early (72T) withdrawal. Have to go 5 years with it and then you would be 59.5 and could do whatever you wanted.

JG
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Old 07-10-2005, 09:24 AM   #7
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Re: New to site

Separated from work 1 year ago. The main reason I kept it with my former employer is they don't charge retirees any fees that I can see. Plus they seem to be doing okay (making money), and I can still make changes to the plan. Also I had a loan against it for my daughters' education.
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Old 07-10-2005, 10:08 AM   #8
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Re: New to site

Hi Rusty,

Do you know if you have accumulated enough to sustain you through retirement ?* Have you run the numbers through the FIRE Calc (there is a link to it on this board) ?* Do you have a good asset allocation plan that you are comfortable with and that is appropriate for retirement ?* What are you doing for health insurance ?

As others have said, you can roll your 401k into an IRA an take distributions before age 59.5 using the IRS Rule 72t.* I am not qualified to explain it to you, but you can google it for information.

In terms of living off your assets, the rule of thumb is to use a 4% withdrawal rate (live off 4% of your assets annually, and adjust for inflation) and keep fund management costs as low as possible.* I like Vanguard because of their large selection of low cost funds.* (BTW, you almost certainly are being charged for fund maintenance -the information is buried in the prospectus).

I would suggest that before you make any moves, you study and ask questions.* Also, if you are going to pay for financial advice, make sure you use a financial planner that you pay on an hourly basis as a consultant.* The financial waters are filled with sharks that will be more than happy to take your money, and lots of it.* Think about how much money 1% of your portfolio is on an annual basis (a typical fee charged by financial planners).* If you are living off 4%, you are paying someone 25% of your gross income to do very little work.* That's probably more than you will pay the government every year.

You've spent a life time accumulating this money, don't be rash.* Read, study and ask. Make it your job to learn this stuff.

Also, check out this site:

http://socialize.morningstar.com/New...mId=F100000015

Much like this site, there are very knowledgeable posters there.* Scam artists are eaten alive.

-helen
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Old 07-10-2005, 04:18 PM   #9
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Re: New to site

Quote:
Originally Posted by Rusty Knight
Separated from work 1 year ago. The main reason I kept it with my former employer is they don't charge retirees any fees that I can see. Plus they seem to be doing okay (making money), and I can still make changes to the plan. Also I had a loan against it for my daughters' education.
I am sorry that you have lost your job after all those years with them. It happened to my wife last year after 26 years of service. We elected to roll the 401K to Fidelity since most of funds in the 401K are managed by Fidelity anyway. Also, Fidelity does charge any fee for the IRA account.

Spanky
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