Withdrawals when spouse has a different retirement year?
I am 62 and ready to shift gears, reinvent myself. I’ve spent much of the last 45 years working to get ahead, struggling to balance career and family and am now tired of the rat race.
• DW is 52 with four years left until a Federal COLA adjusted pension with health insurance.
• We both have significant retirement plans accumulated.
• Plans in my name can be withdrawn anytime.
• DW’s will be available in about seven years
• DW works part time.
• Two kids in the house ages 12 and 15.
• No debts.
• My social security looks good. The tax-free social security dependent benefits for 5+ years sounds even better and should fund most of the remaining college savings needs.
So how much should I withdraw?
The cautious /conservative side of me says: 4% from just my plans. That amounts to a composite 2.25% of both plans combined and DW would continue to add to hers for the next 4 years. This would lower our monthly cash flow.
The abundance side of me thinks we probably have enough and wants to pull 7 % from my plans. That amounts to a composite 4%. DW could just put in enough to get the employer match. This would free up $ dollars for home projects and travel with the kids while we can.
At some point we are doing a little trading between retirement plans depending on contributions and withdrawals.
I am looking for advice from those who have been through this transition.
Thanks,
I am 62 and ready to shift gears, reinvent myself. I’ve spent much of the last 45 years working to get ahead, struggling to balance career and family and am now tired of the rat race.
• DW is 52 with four years left until a Federal COLA adjusted pension with health insurance.
• We both have significant retirement plans accumulated.
• Plans in my name can be withdrawn anytime.
• DW’s will be available in about seven years
• DW works part time.
• Two kids in the house ages 12 and 15.
• No debts.
• My social security looks good. The tax-free social security dependent benefits for 5+ years sounds even better and should fund most of the remaining college savings needs.
So how much should I withdraw?
The cautious /conservative side of me says: 4% from just my plans. That amounts to a composite 2.25% of both plans combined and DW would continue to add to hers for the next 4 years. This would lower our monthly cash flow.
The abundance side of me thinks we probably have enough and wants to pull 7 % from my plans. That amounts to a composite 4%. DW could just put in enough to get the employer match. This would free up $ dollars for home projects and travel with the kids while we can.
At some point we are doing a little trading between retirement plans depending on contributions and withdrawals.
I am looking for advice from those who have been through this transition.
Thanks,