I'm looking for information/opinions on these scenarios:
I'm 50. I'm eligible to retire. I have not yet retired.
When I retire I'll have a pension that will cover my expenses including health insurance and COULD cover a mortgage payment.
What's a "better" idea?
1) Pay for a home in full from my TSP, and absorb maximum exposure the 10% penalty?
I like the prospect of no house payment, and maximum disposable income from the pension.
2) Pay for a DownPayment only from the TSP, thus minimizing the exposure to the 10% penatly?
I could diffuse the payment by 72t-ing the balance of the TSP.....but I have a mortgage payment.
I keep access to the cash.
After I'm 55 I could pull the cash out & pay off the house if I want to.
3) I could keep working til I'm 55, but I REALLY don't want to. I actually plan on being the musician that I've put off for the career I"m now eligible to retire from, but in the interest of sheer pessimism I"m not considering the income from this in my calculations (even though I expect some)
I'm 50. I'm eligible to retire. I have not yet retired.
When I retire I'll have a pension that will cover my expenses including health insurance and COULD cover a mortgage payment.
What's a "better" idea?
1) Pay for a home in full from my TSP, and absorb maximum exposure the 10% penalty?
I like the prospect of no house payment, and maximum disposable income from the pension.
2) Pay for a DownPayment only from the TSP, thus minimizing the exposure to the 10% penatly?
I could diffuse the payment by 72t-ing the balance of the TSP.....but I have a mortgage payment.
I keep access to the cash.
After I'm 55 I could pull the cash out & pay off the house if I want to.
3) I could keep working til I'm 55, but I REALLY don't want to. I actually plan on being the musician that I've put off for the career I"m now eligible to retire from, but in the interest of sheer pessimism I"m not considering the income from this in my calculations (even though I expect some)