Beachbound
Dryer sheet wannabe
So I am about 3 months from officially retiring at age 55. 28+ years in the same career/same company. It’s been great money and leaving the high paycheck is scary for sure. But- the stress, the 24/7 contact, I know it’s time to go.
My question is since my company does not offer “the rule of 55” and signing up for a SEPP would not give me enough of the needed funds for the next 5 years- where do I draw first, and how much cash to I hold on to, or spend before drawing from 401k funds?
A little more info- I’m fortunate to have a decent pension, which if I let grow until 62/67, along with SS should give me enough to cover all my living expenses. So my 401k money is really only needed to fund my bridge from say 55-65. My needed income for those 10 years will be high, $120,000 a year max. At 65, and with a planned moved- no house payment- expenses will drop to 80-90k. Cash from current home will pay for new home outright. It’s the current mortgage and taxes that create the spend gap right now. Staying in big house now for parents near by who are self sufficient, financially stable, but want to stay close (84/87yo). I’ll stay in this house 5 years max- but could go sooner if funds require. Our move will be to NC where we lived 20+ years before moving to Florida to be closer to my parents. I can always travel back and forth if needed and stay with them- but won’t have the “Big house cost” to deal with when the move becomes financially necessary.
I’ll have cash on hand in savings, and after company separation/stock pay outs, etc to cover 18-24 months. But should I use all this cash first before drawing any taxable income?
My 401k is just under 1m. Non-taxable is only just under 60,000.
Just don’t know how much “penalty funds” to take. Only when I use everything else- or take some right away in smaller batches to avoid a big hit when I am 57/58 and still not reaching 59 1/2?
So much good information and advice on this site- just don’t want to make the wrong decisions, or order of withdrawals/spend funds.
My question is since my company does not offer “the rule of 55” and signing up for a SEPP would not give me enough of the needed funds for the next 5 years- where do I draw first, and how much cash to I hold on to, or spend before drawing from 401k funds?
A little more info- I’m fortunate to have a decent pension, which if I let grow until 62/67, along with SS should give me enough to cover all my living expenses. So my 401k money is really only needed to fund my bridge from say 55-65. My needed income for those 10 years will be high, $120,000 a year max. At 65, and with a planned moved- no house payment- expenses will drop to 80-90k. Cash from current home will pay for new home outright. It’s the current mortgage and taxes that create the spend gap right now. Staying in big house now for parents near by who are self sufficient, financially stable, but want to stay close (84/87yo). I’ll stay in this house 5 years max- but could go sooner if funds require. Our move will be to NC where we lived 20+ years before moving to Florida to be closer to my parents. I can always travel back and forth if needed and stay with them- but won’t have the “Big house cost” to deal with when the move becomes financially necessary.
I’ll have cash on hand in savings, and after company separation/stock pay outs, etc to cover 18-24 months. But should I use all this cash first before drawing any taxable income?
My 401k is just under 1m. Non-taxable is only just under 60,000.
Just don’t know how much “penalty funds” to take. Only when I use everything else- or take some right away in smaller batches to avoid a big hit when I am 57/58 and still not reaching 59 1/2?
So much good information and advice on this site- just don’t want to make the wrong decisions, or order of withdrawals/spend funds.