Question here about which retirement fund's to use first.
My situation: I retired a couple of years ago in my mid fifties with a very large public retirement plan along with full medical and dental for life which covers myself and spouse. My take home pay is $7,500. a month (after taxes) plus our house is paid off and in a highly sought after area ($700,000. value). Kids all out of college with no student loans. I will never qualify for SS because I never paid into enough quarters. (public employee)
My wife's the same age and still works but has a fairly low paying, high stress job with no retirement other then SS some day which will be at the maximum rate. I'm currently able to still save at least $3,000. per month which is more then my wife even take's home each month.
Our savings besides my retirement is about a million dollars. This includes $300,000 in cash, $600,000. in a tax deferred 457 account and just over $100,000. in my own stock investment account.
My thoughts are to just have my wife retire early (quit) and live off my retirement and savings. Even if I withdrew only 3% each year I'd still be bringing in an extra $30,000 (minus taxes) which would basically pay for vacation's and big ticket items.
My question though is this, if I start to withdrawal this money which account(s) do I use first? Cash, 457 account or my investment account? Is there a general rule as to what should be used first? As you might be able to tell, I tend to be very financially conservative.
Thanks for the suggestions.
My situation: I retired a couple of years ago in my mid fifties with a very large public retirement plan along with full medical and dental for life which covers myself and spouse. My take home pay is $7,500. a month (after taxes) plus our house is paid off and in a highly sought after area ($700,000. value). Kids all out of college with no student loans. I will never qualify for SS because I never paid into enough quarters. (public employee)
My wife's the same age and still works but has a fairly low paying, high stress job with no retirement other then SS some day which will be at the maximum rate. I'm currently able to still save at least $3,000. per month which is more then my wife even take's home each month.
Our savings besides my retirement is about a million dollars. This includes $300,000 in cash, $600,000. in a tax deferred 457 account and just over $100,000. in my own stock investment account.
My thoughts are to just have my wife retire early (quit) and live off my retirement and savings. Even if I withdrew only 3% each year I'd still be bringing in an extra $30,000 (minus taxes) which would basically pay for vacation's and big ticket items.
My question though is this, if I start to withdrawal this money which account(s) do I use first? Cash, 457 account or my investment account? Is there a general rule as to what should be used first? As you might be able to tell, I tend to be very financially conservative.
Thanks for the suggestions.