Ok,
I'm just getting going on all this planning, but I'm confused about where the RE money comes from. I'm a teacher, so I'm "expecting" a healthy pension. My "magic numbers" are 30 years in and 60 years of age. I started teaching at 30 and am planning to "buy" 5 years of sevice credit to get me to that 30 years by age 55. Then I'd like to retire and wait 5 years to file for the pension.
My question is, how I go about saving for that 5 years of ER? As I understand, my 403b, and Roth will be out of the picture until 59.5. Given my income and spending, I won't max out my 403b, Roth, and then still have After tax money to put away. Should I be skipping the Roth and opting for After tax instead? Should I be looking into this SEPP(barely know what that is)? Does SEPP even apply to 403b? I've heard that principal can be taken from a 403b without penalty...should that be considered?
How did you save your ER money (ER - 59.5)?
Thanks,
devo O0
I'm just getting going on all this planning, but I'm confused about where the RE money comes from. I'm a teacher, so I'm "expecting" a healthy pension. My "magic numbers" are 30 years in and 60 years of age. I started teaching at 30 and am planning to "buy" 5 years of sevice credit to get me to that 30 years by age 55. Then I'd like to retire and wait 5 years to file for the pension.
My question is, how I go about saving for that 5 years of ER? As I understand, my 403b, and Roth will be out of the picture until 59.5. Given my income and spending, I won't max out my 403b, Roth, and then still have After tax money to put away. Should I be skipping the Roth and opting for After tax instead? Should I be looking into this SEPP(barely know what that is)? Does SEPP even apply to 403b? I've heard that principal can be taken from a 403b without penalty...should that be considered?
How did you save your ER money (ER - 59.5)?
Thanks,
devo O0