retire48in2018
Recycles dryer sheets
- Joined
- Mar 12, 2008
- Messages
- 374
From my username - I missed retiring (my choice) in 2018...Now, with a grandchild and other factors - I am committed (*I think*) to retire in mid-late 2022. I would stay at least until June, but employer might ask for partial/part-time after that. I will not discuss with employer until much closer to June 2022. But, there is a chance, that I work remotely/part-time beyond this date. I am not considering that in this analysis.
Here's background financial info (with some assumptions) -k
Brokerage account with index funds (cost basis if 50-60% of funds) - $1.5M
Roth 401k and Roth IRAs - $800k
Trad 401k - $1.4M
Cash - $300k
No debt.
We will move closer to children to TN or TX. Use house sell proceeds and potentially some of cash to facilitate this.
Desired living income - $120k +/-
Not accounting for health insurance.....
So - questions -
1 - How does one access 401k and IRA before age 59.5 (without equal payouts) without the 10% penalty? I know I can pull out my Roth contributions (that's about half of the $800k). How early can one start substantially equal withdrawals, and what flexibility is there in changing that?
2 - From a simulation perspective, what would be alternatives for usage of money for health care expectations?
2a - Use brokerage? I think math would be about $15k in dividends, rest in long term capital gains. I could get close to $120k with <$60k in dividend & capital gain income. Real taxes would be very low, and healthcare would be ACA?? Is that right? Newbie at looking into this. At age 65, look at other options? Even at 0% market return, that should get us really close..
Here's background financial info (with some assumptions) -k
Brokerage account with index funds (cost basis if 50-60% of funds) - $1.5M
Roth 401k and Roth IRAs - $800k
Trad 401k - $1.4M
Cash - $300k
No debt.
We will move closer to children to TN or TX. Use house sell proceeds and potentially some of cash to facilitate this.
Desired living income - $120k +/-
Not accounting for health insurance.....
So - questions -
1 - How does one access 401k and IRA before age 59.5 (without equal payouts) without the 10% penalty? I know I can pull out my Roth contributions (that's about half of the $800k). How early can one start substantially equal withdrawals, and what flexibility is there in changing that?
2 - From a simulation perspective, what would be alternatives for usage of money for health care expectations?
2a - Use brokerage? I think math would be about $15k in dividends, rest in long term capital gains. I could get close to $120k with <$60k in dividend & capital gain income. Real taxes would be very low, and healthcare would be ACA?? Is that right? Newbie at looking into this. At age 65, look at other options? Even at 0% market return, that should get us really close..