Hi am new to forum and three months away until retirement at 50

[dippers]

I am spreading my separation pay of $116000 over three years when i leave, in addition to $14000.00 in a 457b plan. Do i withdraw money from 457b or leave it alone and pay off debt with other money over the coarse of three years? Poor decision with credit cards totaling a little over 57000.00.

 

[Walt34]

Welcome to the forum!

I do hope you have a pension to go with the separation pay and 457b. $57k in cc debt is pretty steep so you'll want to pay that down as soon as you can because the interest charges will continue to accumulate.

Here are some other thoughts to consider before retiring:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

 

[dippers]

have a pension as well

I have 8800 dollar a month pension, plus my wife works, I will be paying 25% for Medical benefits. Mortgage, utilities, car and insurance all covered.

 

[robertf57]

Pay off those cards immediately and take the credit cards out of you wallets! You have a fabulous pension benefit, but as others on this board repeatedly note, the deciding factor will be your expenses


Sent from my iPhone using Early Retirement Forum

 

[DrRoy]

Your funds after paying the CC are $73K. Pretty modest. For comfort and to allow for inflation, I would check to see that your total expenses are well below your pension, unless the pension has COLA or your wife never retires. Your spending need is the potential deal breaker here. You will have to get that reliably determined.

 

[dippers]

I was unsure I was doing right thing, I was working 12 hour shifts rotating between days and nights. Weekends, Holidays and missing family functions for 29+ years ( I did three years working part time.) My youngest son congratulated me and gave me a hug saying "now you can work our shifts!"

 

[papadad111]

Congrats. Yes. Missing family time sucks. Great they can have you back.

Note that the 457 and separation pay are taxes as ordinary income. So is the pension income usually. Make sure you account for taxes - probably around 25% or so in federal and state at the levels you're talking.

Does the 457 require you to take payouts at a prescribed interval or can you defer it ?

 

[dippers]

Not sure yet, I think I can defer until 701/2