View Poll Results: How did/will you pay for expenses before age 59.5 while retired?
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I did/will use the 72(t) SEPP option
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15 |
13.27% |
I had/have a pension I could tap before 59.5
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38 |
33.63% |
I had/have taxable investments to tide me to 59.5
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76 |
67.26% |
Other
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15 |
13.27% |
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Before age 59.5, I did/will pay for retirement by ...
01-03-2008, 08:45 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Before age 59.5, I did/will pay for retirement by ...
A poll to see how potential or legitimate early retirees get it done before age 59.5
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01-03-2008, 09:02 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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90% of my net worth is in taxable investments. The IRAs/401Ks are just "icing on the cake" and we probably won't even withdraw until required to at 71, which is > 20 years away. I don't even count them when computing our SWR!
Audrey
P.S. I voted "other", since there is no "tiding over" involved.
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01-03-2008, 09:06 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Note that if you use a SEPP/72(t) plan and taxable investments and perhaps "other" that the poll allows you to select multiple options. But if you are using predominantly one source, just go with that one. Thanks!
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01-03-2008, 09:31 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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i'm also mostly taxable. plus i've an inherited ira so not only no early withdrawal penalty on that but rather mandatory distributions.
__________________
"off with their heads"~~dr. joseph-ignace guillotin
"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
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01-03-2008, 10:07 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
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Currently age 50 in 14 days. Following is my scenario:
Age 55: Fully COLA'd Defined Benefit Pension
TSP (govt 401k): May or may not tap it, probably won't have to (DW
still has 3 yrs to work at that point)
Age 60: Fully COLA'd military (reserves) pension
DW is 3 yrs younger, so her 401 will be available when I'm 58
Employer pays approx. 75% of medical
So...barring alien invasion we should be OK financially!
__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy
“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
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01-03-2008, 10:18 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by lazygood4nothinbum
i'm also mostly taxable. plus i've an inherited ira so not only no early withdrawal penalty on that but rather mandatory distributions.
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Make sure the benies on the inherited IRA are the way you want things to happen in case something happens to you.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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01-03-2008, 11:59 AM
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#7
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 987
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"Above the line" savings in my 401K along with an Immediate Annuity (purchased with a portion of my former company's cash balance account settlement).
- Ron
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01-03-2008, 01:04 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
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I'll be using 403(b) money, since I'll be 56 or 57 when I retire.
Coach
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01-03-2008, 01:25 PM
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#9
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
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Ah, you youngsters... I turned 59.5 in December.
Guess that solves that problem.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-03-2008, 01:30 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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I feel stupid not knowing what a SEPP 72(t) is but now that I've looked it up, I still probably wouldn't us it since my IRA/401K is only about 20% of my holdings.
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01-03-2008, 02:32 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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Quote:
Originally Posted by FinanceDude
Make sure the benies on the inherited IRA are the way you want things to happen in case something happens to you.........
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ya, thanx. already done. per the will & sharing posts, anything that came from mom i automatically listed her grandchildren as benies. but at least part of the monies i worked for will benefit organizations working to fix what i found in my life either difficult or sad.
__________________
"off with their heads"~~dr. joseph-ignace guillotin
"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
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01-03-2008, 02:36 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,294
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Cash and pension.
__________________
There's no need to complicate, our time is short..
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01-03-2008, 03:03 PM
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#13
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,302
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Fully COLA'd defined benefit pension at age 52 from 29 yrs. in law enforcement. They stopped offering that plan in 1978. Without that I wouldn't have dared retire. It's one of the few agencies that have no unfunded pension liability.
Medical & prescription coverage for life for 30% of the premium, becomes secondary to Medicare at 65.
A deferred compensation account that I have no plans to touch until I have to - not what I'd like in there but I had to start over at age 34 from a divorce that left me with a NW of about $9K.
Wife has some in Thrift Savings from federal govt. time, that's not available for a while.
Small IRA that I opened in 1984 with a one-time deposit of $2K for the tax break. IRS rules changed the following year and I couldn't make any more deposits since I had a pension plan. Then went with deferred compensation account a few years after buying a house.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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01-03-2008, 06:20 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,228
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Quote:
Originally Posted by Walt34
Fully COLA'd defined benefit pension at age 52 from 29 yrs. in law enforcement. They stopped offering that plan in 1978. Without that I wouldn't have dared retire. It's one of the few agencies that have no unfunded pension liability.
Medical & prescription coverage for life for 30% of the premium, becomes secondary to Medicare at 65.
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Pretty much the same boat here. I took advantage of an Early Retirement Incentive, and FIRE'd @ 50 last April after 30+ years with municipal gov't. Also, with the purchase of 5 additional years service, plus cashing in time saved/banked, I jumped out with 37+ years of 'service credit'. I started collecting FULL, COLA'd DB pension in May. My monthly pension, after taxes, was 87.8% of my former monthly NET pay in 2007, PLUS I just got a 3% raise on 1-1-08. (The pay raise at my former employer is 1.5% this year.)
BTW, our pension plan is funded 100% plus!
I have full medical/dental insurance through them for life for 25% of the premium ($151/month as of 1-1-08...was $142 for '07). While still w*rking I paid 20%. It's up to me whether to keep full coverage with them at 65, or switch to Medicare and keep them as secondary....they have nothing mandated either way.
I also have regular and Roth IRA's, plus some taxable accounts.
Life is sweet!
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01-03-2008, 06:41 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 1,183
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Quote:
Originally Posted by RunningBum
I feel stupid not knowing what a SEPP 72(t) is but now that I've looked it up, I still probably wouldn't us it since my IRA/401K is only about 20% of my holdings.
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Not at all stupid Running. You were simply ignorant and did not need to be finding out how to get at that Bucket O'Bucks.
I wish that my stash outside had been closer to a 50/50 mix. I only had 10% outside of Rollover IRA & 401K when I pulled the trigger 3 years ago. Now have just started a 72T on the Rollover IRA and will wait out another year or two on the 401K.
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01-03-2008, 06:43 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
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Since I retired at 48 with almost 90% of my investment assets in IRAs, I am using 72t
withdrawals (annual calculation method) from my large IRA (80% of assets).This plus
my dividends from after-tax investments less taxes and health insurance more than replaces
my old net paycheck less the mortgage I paid off in 2004, although it does not quite replace
my net after the mortgage payment disappeared.
__________________
learn, work, save, invest, fire
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01-03-2008, 08:08 PM
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#17
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,056
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non-COLA pension at 55 topped up with drawing from after tax savings which make up 40% of savings
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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01-03-2008, 08:22 PM
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#18
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Gone but not forgotten
Join Date: Aug 2006
Posts: 6,924
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Semi-COLA pension at 54. Haven't touched anything except MMA (for car); looks like retirement accounts will be left to charity.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
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01-04-2008, 06:51 AM
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#19
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Recycles dryer sheets
Join Date: Aug 2007
Location: Mt. Pleasant
Posts: 141
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While my wife and I both had a pension, she is disabled and we were able w/o penalty to use some of her IRA money to supplement the pension. I retired at 55 but now I am 59.6 so I can use my IRA's also.
Larry
__________________
Retired early and loving it.
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01-04-2008, 09:18 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,305
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Non-cola'ed pension and taxable investments (a bunch of preferreds, municipals (non taxable), cds and cash.
__________________
Life is GREAT!
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