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Re: It's time for ER - Please help
Old 03-21-2005, 01:12 PM   #21
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Re: It's time for ER - Please help

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Our thoughts are to rollover the two 401’s and pension and some of the cash from the sale of the IL home (home sale approx. $350k)and setting up some money into an emergency fund for any unknown future expenses. *This is where our minds have stopped functioning….to avoid any tax/penalities we should rollover into an IRA into where?
JP, you and your wife can exclude up to $500,000 profit on the sale of your home as long as you have lived in it for 2 out of the last 5 years before you sell it. This money will be tax-free. Also, I don't believe you can put any of it into an IRA because it's not earned income. You might want to put this money into a Schwab One-type asset management account where you can invest in mutual funds, stocks, bonds, and the money market and also use it as a checking account. This could be your emergency fund. Check the rules on rolling the 401 and pension into an IRA. Sometimes the IRA rules are more restrictive than the original plan, so you may be better off leaving the money where it is now.

Good luck,

Patrick
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Re: It's time for ER - Please help
Old 03-21-2005, 01:20 PM   #22
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Re: It's time for ER - Please help

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*Any advice regarding getting started, funds to invest in, medical insurance (we will have COBRA for 18 months) would certainly help us.
JP, be careful about the COBRA insurance. Since you plan to move to another state, make sure your current plan is portable - that you can use it in your new state. The plan where I work is not, so it's of no use to me to continue it because I plan to move out-of-state when I retire. I'm looking to get into the plan offered to the state employees where I work (we have the same retirement plan), or buy my own insurance directly from a place like Blue Cross/Blue Shield/Anthem.

Good luck,

Patrick
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