Early Retirement & Financial Independence Community - View Single Post

05-31-2004, 08:18 PM

Thanks to all, once again, for the great comments and advice!

Nords, I'm not sure I can go back to work in the same job. After all they're eliminating my job! But I still could work elsewhere if I needed to, or perhaps even do some contract work for my old employer. But your main point is well taken--I can always go back to work if the ER doesn't work out. I would probably make less $$, but I would still have the pension as a salary supplement.

I read the Four Pillars book a while back and have allocated my portfolio following its principles. Great book!

Charlie, I agree about trying not to tap the 401K prematurely. However, maybe I could take a portion of it to supplement my pension, leaving most of the 401K to draw earnings until later. I guess the bottom line, again, is getting a handle on my estimated expenses in ER.

Malakito, it's clear from what you've said that I need to meet with H.R. to see exactly what I can do with the 401K. If I could transfer part of my 401K balance to an IRA and then take SEPP withdrawals from the IRA, that would be a possible solution to my problem.

I know what you mean about how inexpensive places don't necessarily have crime, but when I searched online for places around here in my cash-only budget range, I got marginal locations. I need to do some more work on this. I've just about decided, however, to stay put for a year if I do the ER; the ER itself will cause enough turmoil in my life at the beginning. The mortgage runs about $13K/yr. Maybe I can pull that out of my cash reserves for the first year of ER with the goal of eliminating it somehow by the second year.

On the other hand, if a good opportunity to downsize presents itself this year, I might jump on it.

My next steps are (1) meet with H.R. to get firm pension figures and more details on the 401K, and (2) work out a more detailed ER budget. Thanks to you all!

05-31-2004, 08:18 PM	#17
Bill J. Guest Posts: n/a	Thanks to all, once again, for the great comments and advice! Nords, I'm not sure I can go back to work in the same job. After all they're eliminating my job! But I still could work elsewhere if I needed to, or perhaps even do some contract work for my old employer. But your main point is well taken--I can always go back to work if the ER doesn't work out. I would probably make less $$, but I would still have the pension as a salary supplement. I read the Four Pillars book a while back and have allocated my portfolio following its principles. Great book! Charlie, I agree about trying not to tap the 401K prematurely. However, maybe I could take a portion of it to supplement my pension, leaving most of the 401K to draw earnings until later. I guess the bottom line, again, is getting a handle on my estimated expenses in ER. Malakito, it's clear from what you've said that I need to meet with H.R. to see exactly what I can do with the 401K. If I could transfer part of my 401K balance to an IRA and then take SEPP withdrawals from the IRA, that would be a possible solution to my problem. I know what you mean about how inexpensive places don't necessarily have crime, but when I searched online for places around here in my cash-only budget range, I got marginal locations. I need to do some more work on this. I've just about decided, however, to stay put for a year if I do the ER; the ER itself will cause enough turmoil in my life at the beginning. The mortgage runs about $13K/yr. Maybe I can pull that out of my cash reserves for the first year of ER with the goal of eliminating it somehow by the second year. On the other hand, if a good opportunity to downsize presents itself this year, I might jump on it. My next steps are (1) meet with H.R. to get firm pension figures and more details on the 401K, and (2) work out a more detailed ER budget. Thanks to you all!