iam21177
Recycles dryer sheets
- Joined
- May 26, 2011
- Messages
- 159
What is your pre-retirement income strategy for before age 59.5 when most accounts are going to be accessible penalty free?
We are still 13-15 years away from a proposed retirement age, but H and I could have 10 years in pre-retirement. We are 35 & 37 right now.
The proposed income sources as of today are:
457b accounts that we can access pre-59.5 once we quit our jobs. Subject to income taxes. No early withdrawal penalties.
Roth IRA contributions can be withdrawn penalty free.
HSAs will be used for pre-retirement medical expenses/premiums.
We are toying with the idea of throwing an extra $1000 at our mortgage right now (in addition to the bi-weekly method), which will pay it off in 4.5 years (we'll be ages 41 and 39 then). Our average monthly NOW expenses minus the mortgage lowers the average 25%.
However, the biweekly plan that we're doing now will still have the mortgage paid off by the proposed retirement age (15 years from now).
That's all I've got! Quick calculations show that the 457b will be valued over 1Mil alone in 13 years at 4% apr. 457b only make up 35% of our total savings at the moment.
I played on FireCalc, and it gave me good results, but does it not assume I can access all of my accounts at the retirement age I punch in?
Care to share your pre-retirement age game plan?
We are still 13-15 years away from a proposed retirement age, but H and I could have 10 years in pre-retirement. We are 35 & 37 right now.
The proposed income sources as of today are:
457b accounts that we can access pre-59.5 once we quit our jobs. Subject to income taxes. No early withdrawal penalties.
Roth IRA contributions can be withdrawn penalty free.
HSAs will be used for pre-retirement medical expenses/premiums.
We are toying with the idea of throwing an extra $1000 at our mortgage right now (in addition to the bi-weekly method), which will pay it off in 4.5 years (we'll be ages 41 and 39 then). Our average monthly NOW expenses minus the mortgage lowers the average 25%.
However, the biweekly plan that we're doing now will still have the mortgage paid off by the proposed retirement age (15 years from now).
That's all I've got! Quick calculations show that the 457b will be valued over 1Mil alone in 13 years at 4% apr. 457b only make up 35% of our total savings at the moment.
I played on FireCalc, and it gave me good results, but does it not assume I can access all of my accounts at the retirement age I punch in?
Care to share your pre-retirement age game plan?
Last edited: