I am 52 and being offered early retirement by sweetening my pension. Looking for advice on how to draw from accounts if I take it. I have run FIRECalc and it says I will be fine. I have money in my 401K, which is invested in diversified stock mutual funds. I also have an inherited IRA, and a joint account, both of which are invested in mutual funds and bonds.
If I take the retirement as an annuity (I can also take as a lump sum), my pension will not be enough to cover my monthly expenses. I was thinking of this strategy:
- Leave the 401K alone till I reach 59 1/2
- Change the inherited IRA and joint accounts to pay out all interest, dividends and capital gains into a money market for monthly expenses
- Withdraw the rest of what I need for monthly expenses from the joint account. Maybe withdraw 3 years worth of expenses and put in CD's, kind of like a mini "bucket strategy" approach.
Thoughts on this approach? Anyone see any issues with this or perhaps a better way to do things?
If I take the retirement as an annuity (I can also take as a lump sum), my pension will not be enough to cover my monthly expenses. I was thinking of this strategy:
- Leave the 401K alone till I reach 59 1/2
- Change the inherited IRA and joint accounts to pay out all interest, dividends and capital gains into a money market for monthly expenses
- Withdraw the rest of what I need for monthly expenses from the joint account. Maybe withdraw 3 years worth of expenses and put in CD's, kind of like a mini "bucket strategy" approach.
Thoughts on this approach? Anyone see any issues with this or perhaps a better way to do things?