Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
When take out pension
Old 04-20-2016, 05:54 AM   #1
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Marietta
Posts: 51
When take out pension

I have finally figured it out so I want to put it out there to hear what you guys think. You have helped in the past.

I am retired and husband retiring in January. When husband retires we have a 22 month window to deal with before his Normal Retirement Date. Our monthly spending will be around 4000 a month(taxes not included) or 48,000 a year. All we will have is 18,000 my pension; 15,000 rental property; ?.... so we could take $ from our 900,000 net egg or pull husband pension. This is the deal if he takes early it is a reduction of 450.. at 3,482 or we could just wait a year and take it at 3,731 only lose 200. If we wait until the normal retirement date it will be 3,932 (47,184)

We are both 62. Because I am under the ssi windfall I will receive a reduction in survivorship, we probably will not take out the ssi until 66 or 67.

I posted some of this on I am link.

Love your input..... JWR
__________________

__________________
jwr62 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-20-2016, 07:46 AM   #2
Recycles dryer sheets
 
Join Date: Feb 2008
Posts: 452
Hi,

I think you will need to provide more information before ER members can help you out...

Can you provide the link you mentioned at the end of your post?
Is healthcare related expense included in your annual $48K (premiums, co-pays, meds, etc.)?
How positive are you of $15k rental income each and every year? Is this net of maintenance expense and other fees/taxes? Do you have a reserve for fixing it when needed?
How is your $900k portfolio spread out (401k, IRA's, taxable accounts)?

Based on the limited info you've got in your OP, I see this way.
You only need to come up with $15-20k (just to be very conservative) for the 1st year. I don't think you even need to budget for taxes based on $48k income, maybe on the state level only.
You don't mention your hubby's salary. Depending how large it is, I'd probably save as much of his net pay in your savings account and contribute to his 401k up to the company match.
If your husband's pension is secure long term and you're not taking a lump sum and both of you are healthy, I'd not pull his pension for a year for sure.

So, that difference of $15-20k would come out from your savings over the next 8 months plus some from the $900K portfolio.

Another thing to consider if his pension is for him only or if you'll get too in case he passes away first. Is the AA of your portfolio going into retirement comfortable for both of you?

I'm not familiar with 'SSI windfall', but either way I don't see a problem of taking $20k from your nest egg between age of 63 and 66-67. Unless totally unforeseen things happen.

Good luck.
__________________

__________________
aida2003 is offline   Reply With Quote
Old 04-20-2016, 09:15 AM   #3
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 701
My retirement plan required taking a large % out each year until all income streams come online (SS for both, wife's pension). Once that happens, withdrawal for expenses goes to $0, so it's not too different than what you're contemplating. While we're not to the $0 yet, things are going well and we started with a smaller retirement savings bucket than you.

It sounds like you might be leery of spending your savings, just as my wife is/was (she goes back and forth). The best solution to that was to lay it out on a spreadsheet to show her how the savings grow, once we don't need it for expenses. So I think you can wait on your husband's pension until full retirement. I also suggest you take this year trying to live on your retirement budget which will allow you to finance part of the next 22 months.


Sent from my iPad using Early Retirement Forum
__________________
akck is online now   Reply With Quote
Old 04-20-2016, 10:31 AM   #4
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Marietta
Posts: 51
Quote:
Originally Posted by aida2003 View Post
Hi,

I think you will need to provide more information before ER members can help you out...

Quote:
Originally Posted by aida2003 View Post
Can you provide the link you mentioned at the end of your post?
retired at 62, husband at 63
Quote:
Originally Posted by aida2003 View Post
Is healthcare related expense included in your annual $48K (premiums, co-pays, meds, etc.)?
thanks for reminding me.. my healthcare is taken out so my pension is 1046 instead of1500...
Quote:
Originally Posted by aida2003 View Post
How positive are you of $15k rental income each and every year? Is this net of maintenance expense and other fees/taxes? Do you have a reserve for fixing it when needed?
we rent rooms so it is stable and my son lives there in the rental home. I have not put taxes into the budget..
Quote:
Originally Posted by aida2003 View Post
How is your $900k portfolio spread out (401k, IRA's, taxable accounts)?
only 60,000 is in a roth, all is in IRA or 403b

Based on the limited info you've got in your OP, I see this way.
You only need to come up with $15-20k (just to be very conservative) for the 1st year. I don't think you even need to budget for taxes based on $48k income, maybe on the state level only.
You don't mention your hubby's salary. Depending how large it is, I'd probably save as much of his net pay in your savings account and contribute to his 401k up to the company match.
Quote:
Originally Posted by aida2003 View Post
If your husband's pension is secure long term and you're not taking a lump sum and both of you are healthy, I'd not pull his pension for a year for sure.
pension is long term.. only waiting a year to take it we only lose 200.00 so if we can get his pension within a year then we can still add some from savings to be able to live alittle.

Quote:
Originally Posted by aida2003 View Post
So, that difference of $15-20k would come out from your savings over the next 8 months plus some from the $900K portfolio.
the extra $ will come from the 900k

Another thing to consider if his pension is for him only or if you'll get too in case he passes away first. Is the AA of your portfolio going into retirement comfortable for both of you?

I'm not familiar with 'SSI windfall', but either way I don't see a problem of taking $20k from your nest egg between age of 63 and 66-67. Unless totally unforeseen things happen.
\
Good luck.
thank for your help
__________________
jwr62 is offline   Reply With Quote
Old 04-20-2016, 11:24 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,495
How secure is your pension? Have you considered scenarios where your pension might be threatened?

https://www.washingtonpost.com/news/...-for-retirees/

Quote:
Ava Miller, 64, and her husband, Ed Northrup, 68, could see their combined monthly pension income cut to about $3,000 from the nearly $7,000 they receive now, according to a letter they received from Central States in October.
__________________
Options is offline   Reply With Quote
Old 04-20-2016, 11:26 AM   #6
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Marietta
Posts: 51
I will check into that.. thanks
__________________
jwr62 is offline   Reply With Quote
When take out pension
Old 04-20-2016, 11:55 AM   #7
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 1,046
When take out pension

1)I don't see any issue as a portfolio of $900K yielding just 3% will throw off $27K annually... Won't that cover your shortfall?
2)Many pensions are threatened but government pensions have held pretty firm. Years ago my firm (and a thousand others) converted from a defined benefit plan to a defined account plan. At first the math told me we took it on the chin. However, after seeing all these pension defaults I am happy to have an defined account plan. my money will go with me when I retire.

All that many pensioners believed about having a safe retirement is being challenged.

Sent from my iPad using Early Retirement Forum
__________________
rayinpenn is offline   Reply With Quote
Old 04-22-2016, 09:24 AM   #8
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Marietta
Posts: 51
Quote:
Originally Posted by rayinpenn View Post
1)I don't see any issue as a portfolio of $900K yielding just 3% will throw off $27K annually... Won't that cover your shortfall?
2)Many pensions are threatened but government pensions have held pretty firm. Years ago my firm (and a thousand others) converted from a defined benefit plan to a defined account plan. At first the math told me we took it on the chin. However, after seeing all these pension defaults I am happy to have an defined account plan. my money will go with me when I retire.

All that many pensioners believed about having a safe retirement is being challenged.

Sent from my iPad using Early Retirement Forum
thanks.. I think we are leading towards waiting for the pension and just pulling from our savings...
__________________

__________________
jwr62 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
when to / how to take pension? JoeDreaming FIRE and Money 10 04-14-2009 09:47 AM
Should I take my company pension early? clarksvilleal Hi, I am... 19 12-03-2007 08:00 PM
Take this pension as soon as eligible? Telly FIRE and Money 7 09-27-2006 09:11 AM
Take a lump sum or pension payout Rollie FIRE and Money 45 06-11-2006 07:54 PM
Small Pension Avail - Which would you take?? Cut-Throat FIRE and Money 12 05-19-2006 09:13 PM

 

 
All times are GMT -6. The time now is 05:22 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.