I have been very impressed with the knowledge and helpfulness I've seen on this forum.
57 years old, female, $65,000 in 401k at work, fully vested, $15,000 in savings. No other retirement plan available at work so far as I know. (very small company, about 50 employees)
Full retirement would be age 66. If there is any way that I can figure out how to retire before then, I'd like to do so.
Salary $56,000/year now, which was a *big* raise over last year. I'm used to getting by on $35,000 to $40,000. I think if I really cut back, I can get by quite comfortably on $20,000 a year (assuming I'm not paying tax on that). House is paid off, 2 cars are paid off, one is a classic in desperate need of repair, so I'm probably going to sell it for what I can get rather than try to restore it myself. Credit cards all paid off every month. Don't owe anyone anything. No husband, no kids, live alone, no responsibilities besides myself.
I come from a family of very short-lived people. Mother died at 60, her only sibling, a sister, had a heart attack at 59, father had heart attack at 55 (but survived), his mother died at 40. Mother's father retired at 65, which he had been looking forward to for decades....nine months later he came down with cancer, and suffered terribly until he died 9 months after that.
I have a formal diagnosis of Asperger Syndrome, which is part of the Autistic Spectrum. Spectrum people have many, many health issues, aside from the social, economic, and work issues. I am gluten intolerant, and had ricketts as a child. I also have type 2 diabetes, high blood pressure, and high cholesterol. Which is precisely why I don't want to wait until 66...I may not make it. I've had to work hard all my life just to keep up with my minimum bills...I desperately need to retire and tend to my health.
First issue: I'm on very expensive drugs. I can't get by without a prescription plan. I see I am not able to apply for Medicare until I am 65. It occured to me that I might be able to use COBRA to retire a year earlier, at 64, however, I see that there is a lot of bad feeling about COBRA. Any suggestions for alternatives, since I don't have another retirement plan at work that would include insurance?
Second issue: Every dollar in my 401k is pre-tax. (!) Not my choice, I assure you. Is it correct that I will have to pay full income tax on the entire amount, at going rates, when I take it all out? (I can do so at 59 1/2.) And that the tax rate will include both the amount that I take out and any other income that I have for that year? Can anyone suggest calculators (on the Internet) that can help me work the figures? I need to check the amount of taxes paid if:
1. I take everything out in one year, *after* I retire and have no income except SocSec,
2. I take everything out over a period of several years after I retire,
3. I take everything out at one time while I am still working,
4. I take everything out over a period of several years while I am still working.
And obviously, this will change in unforseeable ways due to changes in income taxes over the next few years, but I at least need to get some guesses before I can plan what I should do, and when I can afford to retire.
Suggestions, advice, pointers to calculators and other resources, all cheerfully accepted.
57 years old, female, $65,000 in 401k at work, fully vested, $15,000 in savings. No other retirement plan available at work so far as I know. (very small company, about 50 employees)
Full retirement would be age 66. If there is any way that I can figure out how to retire before then, I'd like to do so.
Salary $56,000/year now, which was a *big* raise over last year. I'm used to getting by on $35,000 to $40,000. I think if I really cut back, I can get by quite comfortably on $20,000 a year (assuming I'm not paying tax on that). House is paid off, 2 cars are paid off, one is a classic in desperate need of repair, so I'm probably going to sell it for what I can get rather than try to restore it myself. Credit cards all paid off every month. Don't owe anyone anything. No husband, no kids, live alone, no responsibilities besides myself.
I come from a family of very short-lived people. Mother died at 60, her only sibling, a sister, had a heart attack at 59, father had heart attack at 55 (but survived), his mother died at 40. Mother's father retired at 65, which he had been looking forward to for decades....nine months later he came down with cancer, and suffered terribly until he died 9 months after that.
I have a formal diagnosis of Asperger Syndrome, which is part of the Autistic Spectrum. Spectrum people have many, many health issues, aside from the social, economic, and work issues. I am gluten intolerant, and had ricketts as a child. I also have type 2 diabetes, high blood pressure, and high cholesterol. Which is precisely why I don't want to wait until 66...I may not make it. I've had to work hard all my life just to keep up with my minimum bills...I desperately need to retire and tend to my health.
First issue: I'm on very expensive drugs. I can't get by without a prescription plan. I see I am not able to apply for Medicare until I am 65. It occured to me that I might be able to use COBRA to retire a year earlier, at 64, however, I see that there is a lot of bad feeling about COBRA. Any suggestions for alternatives, since I don't have another retirement plan at work that would include insurance?
Second issue: Every dollar in my 401k is pre-tax. (!) Not my choice, I assure you. Is it correct that I will have to pay full income tax on the entire amount, at going rates, when I take it all out? (I can do so at 59 1/2.) And that the tax rate will include both the amount that I take out and any other income that I have for that year? Can anyone suggest calculators (on the Internet) that can help me work the figures? I need to check the amount of taxes paid if:
1. I take everything out in one year, *after* I retire and have no income except SocSec,
2. I take everything out over a period of several years after I retire,
3. I take everything out at one time while I am still working,
4. I take everything out over a period of several years while I am still working.
And obviously, this will change in unforseeable ways due to changes in income taxes over the next few years, but I at least need to get some guesses before I can plan what I should do, and when I can afford to retire.
Suggestions, advice, pointers to calculators and other resources, all cheerfully accepted.