Big_Hitter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
marry rich...
I haven't seen much here on how to earn more. I would think that the shortest routes to earn more would be one of two ways.I make 34,000 a year working at a University in a "tech" job (database administration) that doesn't pay a "tech" salary. However, this is much better (11,000) than what I was making 5 years ago. I graduated from the University of Virginia with a BS in Psychology, but didn't want to do anything counseling/psychology related. My GPA wasn't all that great so I'm having difficulty being accepted to a Grad program.
I have identified the steps I need to take as:
1. Earn more money - new job and side business
2. Lower wasteful spending (Eat out less)
3. Learn to invest better
I can take classes, and I currently am taking classes, but they're on the undergraduate level because I have not been accepted to grad school. I do have pension benefits (they are currently around $7000), and I am fully vested.
^^^ He'll be here all week. ^^^
I agree, to a point. No way should there be $100 dinners every week, nor every month. But a blanket "stay out of restaurants" seems drastic to me if that's something he really enjoys. DW and I looooove some food, but we find ways to get it done less expensively now as we accelerate our savings. I've found I really love to cook good stuff at home, and that meal with wine that costs $30+time to make at home would be $200+ out. That's one way to scratch the foodie itch.
The age and years of service tend to vary but yeah, OP should definitely research. He's already vested so he should be allowed a deferred service retirement. Alas, the pension probably wouldn't amount to much after inflation if he moves to a different company.1. Get thoroughly familiar with the DB pension plan, start working scenarios of mo. benefit at min. retirement age (55 w/ at least 10 years for most non-public safety gov. pensions). Does the plan have subsidized medical ?
One thing to note, you need to be at least age 55 and you need to retire from the same company/institution as your 401k/457 account. If, say, you retire at age 45, then you'll have to wait until you're 59 1/2 to withdraw funds without penalty.3. The 457 has the advantage of being able to withdraw w/o penalty before 59 1/2 if you leave , and want the money , say to buy or start a business and don't want to roll into an IRA.
The age and years of service tend to vary but yeah, OP should definitely research. He's already vested so he should be allowed a deferred service retirement. Alas, the pension probably wouldn't amount to much after inflation if he moves to a different company.
One thing to note, you need to be at least age 55 and you need to retire from the same company/institution as your 401k/457 account. If, say, you retire at age 45, then you'll have to wait until you're 59 1/2 to withdraw funds without penalty.
I think full vesting is the only requirement for a deferred service retirement. That and age, of course.The OP states fully vested. Being vested, for normal, early, and deferred service retirement does vary from plan to plan.
Yes, the separation from service could be for any reason but I believe the age 55 rule still applies (iirc, that rule comes from the IRS). Same rules for 401k. It's only traditional IRA that requires 59 1/2 if you don't do 72t.Some 457 plans do allow penalty free withdrawal prior to 59 1/2 if you separate for any reason.....I used to think it was 59 1/2 on all 457 plans, until I saw a post to the contrary. I checked, and much to my surprise, my plan allows it. I had been in the plan over 12 years, and never actually read the plan document
Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55
Most 457 plans do allow for penalty free withdrawals at any age, as long as you are separated from the employer.Yes, the separation from service could be for any reason but I believe the age 55 rule still applies (iirc, that rule comes from the IRS). Same rules for 401k. It's only traditional IRA that requires 59 1/2 if you don't do 72t.
I just checked our plan documents again and you're right! Not that it does me much good. I'm waiting until I'm eligible for normal retirement (55 years old/30 years service).Most 457 plans do allow for penalty free withdrawals at any age, as long as you are separated from the employer.
Here are some links that mention this:
Is there a penalty for early withdrawals from a 457 plan?
Rules for 457 Retirement Plans-Kiplinger
I know that my plan does allow for this.