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View Poll Results: How did/will you pay for expenses before age 59.5 while retired?
I did/will use the 72(t) SEPP option 15 13.27%
I had/have a pension I could tap before 59.5 38 33.63%
I had/have taxable investments to tide me to 59.5 76 67.26%
Other 15 13.27%
Multiple Choice Poll. Voters: 113. You may not vote on this poll

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Before age 59.5, I did/will pay for retirement by ...
Old 01-03-2008, 09:45 AM   #1
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Before age 59.5, I did/will pay for retirement by ...

A poll to see how potential or legitimate early retirees get it done before age 59.5
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Old 01-03-2008, 10:02 AM   #2
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90% of my net worth is in taxable investments. The IRAs/401Ks are just "icing on the cake" and we probably won't even withdraw until required to at 71, which is > 20 years away. I don't even count them when computing our SWR!

Audrey

P.S. I voted "other", since there is no "tiding over" involved.
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Old 01-03-2008, 10:06 AM   #3
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Note that if you use a SEPP/72(t) plan and taxable investments and perhaps "other" that the poll allows you to select multiple options. But if you are using predominantly one source, just go with that one. Thanks!
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Old 01-03-2008, 10:31 AM   #4
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i'm also mostly taxable. plus i've an inherited ira so not only no early withdrawal penalty on that but rather mandatory distributions.
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Old 01-03-2008, 11:07 AM   #5
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Currently age 50 in 14 days. Following is my scenario:

Age 55: Fully COLA'd Defined Benefit Pension

TSP (govt 401k): May or may not tap it, probably won't have to (DW
still has 3 yrs to work at that point)

Age 60: Fully COLA'd military (reserves) pension

DW is 3 yrs younger, so her 401 will be available when I'm 58

Employer pays approx. 75% of medical

So...barring alien invasion we should be OK financially!
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Old 01-03-2008, 11:18 AM   #6
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Originally Posted by lazygood4nothinbum View Post
i'm also mostly taxable. plus i've an inherited ira so not only no early withdrawal penalty on that but rather mandatory distributions.
Make sure the benies on the inherited IRA are the way you want things to happen in case something happens to you.........
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Old 01-03-2008, 12:59 PM   #7
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"Above the line" savings in my 401K along with an Immediate Annuity (purchased with a portion of my former company's cash balance account settlement).

- Ron
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Old 01-03-2008, 02:04 PM   #8
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I'll be using 403(b) money, since I'll be 56 or 57 when I retire.

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Old 01-03-2008, 02:25 PM   #9
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Ah, you youngsters... I turned 59.5 in December.

Guess that solves that problem.
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Old 01-03-2008, 02:30 PM   #10
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I feel stupid not knowing what a SEPP 72(t) is but now that I've looked it up, I still probably wouldn't us it since my IRA/401K is only about 20% of my holdings.
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Old 01-03-2008, 03:32 PM   #11
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Make sure the benies on the inherited IRA are the way you want things to happen in case something happens to you.........
ya, thanx. already done. per the will & sharing posts, anything that came from mom i automatically listed her grandchildren as benies. but at least part of the monies i worked for will benefit organizations working to fix what i found in my life either difficult or sad.
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Old 01-03-2008, 03:36 PM   #12
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Cash and pension.
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Old 01-03-2008, 04:03 PM   #13
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Fully COLA'd defined benefit pension at age 52 from 29 yrs. in law enforcement. They stopped offering that plan in 1978. Without that I wouldn't have dared retire. It's one of the few agencies that have no unfunded pension liability.

Medical & prescription coverage for life for 30% of the premium, becomes secondary to Medicare at 65.

A deferred compensation account that I have no plans to touch until I have to - not what I'd like in there but I had to start over at age 34 from a divorce that left me with a NW of about $9K.

Wife has some in Thrift Savings from federal govt. time, that's not available for a while.

Small IRA that I opened in 1984 with a one-time deposit of $2K for the tax break. IRS rules changed the following year and I couldn't make any more deposits since I had a pension plan. Then went with deferred compensation account a few years after buying a house.
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Old 01-03-2008, 07:20 PM   #14
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Originally Posted by Walt34 View Post
Fully COLA'd defined benefit pension at age 52 from 29 yrs. in law enforcement. They stopped offering that plan in 1978. Without that I wouldn't have dared retire. It's one of the few agencies that have no unfunded pension liability.

Medical & prescription coverage for life for 30% of the premium, becomes secondary to Medicare at 65.
Pretty much the same boat here. I took advantage of an Early Retirement Incentive, and FIRE'd @ 50 last April after 30+ years with municipal gov't. Also, with the purchase of 5 additional years service, plus cashing in time saved/banked, I jumped out with 37+ years of 'service credit'. I started collecting FULL, COLA'd DB pension in May. My monthly pension, after taxes, was 87.8% of my former monthly NET pay in 2007, PLUS I just got a 3% raise on 1-1-08. (The pay raise at my former employer is 1.5% this year.)

BTW, our pension plan is funded 100% plus!

I have full medical/dental insurance through them for life for 25% of the premium ($151/month as of 1-1-08...was $142 for '07). While still w*rking I paid 20%. It's up to me whether to keep full coverage with them at 65, or switch to Medicare and keep them as secondary....they have nothing mandated either way.

I also have regular and Roth IRA's, plus some taxable accounts.

Life is sweet!
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Old 01-03-2008, 07:41 PM   #15
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I feel stupid not knowing what a SEPP 72(t) is but now that I've looked it up, I still probably wouldn't us it since my IRA/401K is only about 20% of my holdings.
Not at all stupid Running. You were simply ignorant and did not need to be finding out how to get at that Bucket O'Bucks.

I wish that my stash outside had been closer to a 50/50 mix. I only had 10% outside of Rollover IRA & 401K when I pulled the trigger 3 years ago. Now have just started a 72T on the Rollover IRA and will wait out another year or two on the 401K.
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Old 01-03-2008, 07:43 PM   #16
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Since I retired at 48 with almost 90% of my investment assets in IRAs, I am using 72t
withdrawals (annual calculation method) from my large IRA (80% of assets).This plus
my dividends from after-tax investments less taxes and health insurance more than replaces
my old net paycheck less the mortgage I paid off in 2004, although it does not quite replace
my net after the mortgage payment disappeared.
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Old 01-03-2008, 09:08 PM   #17
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non-COLA pension at 55 topped up with drawing from after tax savings which make up 40% of savings
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Old 01-03-2008, 09:22 PM   #18
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Semi-COLA pension at 54. Haven't touched anything except MMA (for car); looks like retirement accounts will be left to charity.
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Old 01-04-2008, 07:51 AM   #19
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While my wife and I both had a pension, she is disabled and we were able w/o penalty to use some of her IRA money to supplement the pension. I retired at 55 but now I am 59.6 so I can use my IRA's also.
Larry
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Old 01-04-2008, 10:18 AM   #20
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Non-cola'ed pension and taxable investments (a bunch of preferreds, municipals (non taxable), cds and cash.
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