Hi all
I am a 62 yo male who recently lost his job and has very small prospects of finding another, though I keep trying.
Ex divorced me over a dozen of years ago and "cleaned me up", so to speak.
I live alone. I have 2 children who are grown up and are OK on their own. I own no home (rent is about $1300/month). My current assets are about $50,000 in savings and about $250,000 in a 401k and another $35,000 in assorted IRA/403B plans.. I have no debts. I have just started collecting Unemployment Insurance, $600/week.
Social Security folks tell me that if I retire now, I will collect about $1273/month but that if I wait until I am 66 they will pay $1886/month. That was based on an estimated income of about $65,000/year which, of course, I no longer have.
I started Cobra this month and that presumably lasts for 18 months (Cobra cost is $640/month); after that, I am in trouble because I had a heart blockage (I have a stent) and high blood pressure. I don't expect to make it to 80 (will be happy if I make it to 70!).
I'd like to get opinions as to how to proceed:
I know I have to move to a lower rent district/State. Besides that:
- Should I collect unemployment until it runs out and supplement it with my savings? I'd like to hang onto the savings if possible, for a snowy day (these days are all rainy days).
- Should I withdraw money from my 401K and from my savings, and survive on that until I am 66, and then start to collect the extra $600/month that SS penalize me with for retiring early? If so, will they pay me less because my Income has been now drastically reduced?
- Should I start collecting SS and withdraw a certain amount (say 6%) of my 401K every year? - That would give me about $30,000/year while not dissipating greatly the 401K.
- I looked into buying annuities but it seems to me that they are a total steal for the insurance companies: the best quote I got would pay me $1400/month until I died if I invested the $250,000 401k with them. I would, of course, have to pay their set up fees.
Any advice you folks can provide would be greatly appreciated.
I am a 62 yo male who recently lost his job and has very small prospects of finding another, though I keep trying.
Ex divorced me over a dozen of years ago and "cleaned me up", so to speak.
I live alone. I have 2 children who are grown up and are OK on their own. I own no home (rent is about $1300/month). My current assets are about $50,000 in savings and about $250,000 in a 401k and another $35,000 in assorted IRA/403B plans.. I have no debts. I have just started collecting Unemployment Insurance, $600/week.
Social Security folks tell me that if I retire now, I will collect about $1273/month but that if I wait until I am 66 they will pay $1886/month. That was based on an estimated income of about $65,000/year which, of course, I no longer have.
I started Cobra this month and that presumably lasts for 18 months (Cobra cost is $640/month); after that, I am in trouble because I had a heart blockage (I have a stent) and high blood pressure. I don't expect to make it to 80 (will be happy if I make it to 70!).
I'd like to get opinions as to how to proceed:
I know I have to move to a lower rent district/State. Besides that:
- Should I collect unemployment until it runs out and supplement it with my savings? I'd like to hang onto the savings if possible, for a snowy day (these days are all rainy days).
- Should I withdraw money from my 401K and from my savings, and survive on that until I am 66, and then start to collect the extra $600/month that SS penalize me with for retiring early? If so, will they pay me less because my Income has been now drastically reduced?
- Should I start collecting SS and withdraw a certain amount (say 6%) of my 401K every year? - That would give me about $30,000/year while not dissipating greatly the 401K.
- I looked into buying annuities but it seems to me that they are a total steal for the insurance companies: the best quote I got would pay me $1400/month until I died if I invested the $250,000 401k with them. I would, of course, have to pay their set up fees.
Any advice you folks can provide would be greatly appreciated.