Financial Advice

L1: Financial AdvicePresent age 56, still employed, net worth approximately >1m, half in 401(k), half in retirement benefits.
Property Investment equity 250k,
Monthly investment $ 2200 usd to 401(k)
question: plan to build our retirement / dream home, several options exist to pay for construction and final mortgagemonthly payments.
As the 401K has 500K plus, I was thinking of tapping those funds for five years, if I have the facts correct. The 401K would deplete but no more then the amount I am investing each month, based on the 72T calculator.
Is this a feasible solution.
I have built myposition through very conservative thinking / investing, no debt other then a home mortgage.
2005-11-05 23:49, By: Keith, IP: [213.42.2.10]

L2: Financial AdviceI don’t believe that this is the correct forum for this advice. It might be good for what you pay for it — nothing. I think you can afford the proper professional guidance from an accountant or financial planner, and his advice will be worth may times more than what his fees are.2005-11-06 00:18, By: dlztaxes, IP: [4.175.9.91]

L2: Financial AdviceKeith,
Just my thoughts about still working at 56:
A direct 401k withdrawl would trigger a 10% penalty for premature distribution.
(You are not separated from service yet)
Would you setup a 72 monthly distribution from your company 401k?
If so, you would have to stop contributing to keep from busting the 72t plan.
Would your company allow you to rollover all (or a portion) to a rollover IRA?
If so, that might work to segregate the 72t plan from your 401k.
You have 500k in your 401k and 500k in your pension plan; however, your pension plan is useless until you retire… right? So the pension money is useless in calculating “how to pay for your dream home until you are 65.”
I don’t understand the investment equity of 250K; however, I assume it is in your 401k. Does that mean you could only withdraw 250K of the 500K because the rest is locked into long-term bonds, etc?
Finally, your 401k contributions of $2200.00 per month would indicate that you are “well paid”; however, I have a funny feeling that you are “well-in-debt” also because if you were not in debt, and making the salary that I presume you are making, there would be no need to consider the actions you are contemplating.
Of course, as stated by dlztaxes, you definitely need the right professional advice and this forum is not intended to offer broad financial solutions.
Good luck,
gus 2005-11-06 11:35, By: gus, IP: [70.110.149.57]

L2: Financial AdviceDLZ is correct. Find a good financial planner and a CPA to work with. This is definitely not the best forum to answer your questions. Once you start working with the planner you”ll understand. You need to lay out a lot more information to your planner so he / she can develop a good investment / spending plan for you.
Paying down your mortgage is usually a good idea, but consider the source of funds. Using K-plan money is generally not wise. If you pay off your home and use most of your retirement dollars to do it, and the market takes any downturn, I don”t think you can go out to corner of your home and take a bite for nurishment. My point is when you pay off the mortgage you can get a lot more mileage from your dollar in a high-interest environment, which we may be headed for. But at the same time when you tie-up too much money in the house, you may have to sell it later for cash flow. Think long and hard before taking funds from the K-plan for other than retirement living expenses.
Hope this helps.
Jim2005-11-06 11:35, By: Jim, IP: [70.184.1.35]