Early Retirement

L1: Early RetirementMy company is going through a reduction. I am affected. I am 49, my husband is 51 and still employed.
I have the following assets to consider:
$575,000 Cash Pension
$100,000 401K
$65,000 Rollover IRA
I can take my pension in an annuity for about $32,000 per year. I am not a risk taker but want to make the best decision that will permit me to draw as much as possible over the next ten years. I”d like to volunteer and work only if absolutely necessary. Any recommendations?
Note: Every Financial Advisor advises against the 72T even when they know what it is. 2007-10-18 06:59, By: almost out, IP: [76.177.101.180]

L2: Early RetirementYou have a complex planning situation and should work with a financial planner you feel comfortable with, and who can explain their recommendations in such a way that you completely understand the plan. (Please see mycomments to “Desperado”s” post.”) Taking the $32,000 annual annuity may be a good deal for you but there is not enough information provided to make a determination, and this is not the forum to do the planning you need. That”s the job of your Financial Advisor. From the little information you have provided, the “No 72(t)” advice may be the best advice. You just need a complete plan to determine the best course for you and your family.
One note of caution. If you take the pension annuity, make sure you choose a distribution period that will not be too short and thus trigger a 10% withdrawal penalty. Read over thepayout options very carefully. This information will bein the distribution package provided by your employer or the custodian of the pension plan.
Good luck.
Jim2007-10-18 07:48, By: Jim, IP: [24.252.195.14]

L2: Early RetirementIt is important to look at the investment options in each of your 3 retirement plans. Also, find out from the administrator of your employer”s plan what options you have available. For example, some plans will allow you to continue with your investments in their plan, while others require you to roll them over to your own IRA.
The “financial advisors” may be saying NO because of the quality of the plans and the options available to you. Normally, many plans do not permit distributions until reaching 55 or 59 1/2, in which case you would have to roll over all of your retirement accounts into your ROLLOVER IRA.
Under all circumstances, I cannot understand why ALL financial advisors say NO to a SEPP 72-T. What else do they recommend for you to use over the next 10 years that you are planning ? We can all understand the potential for problems if you “bust” any SEPP 72-T at any time during this 10 year period, especially after the first couple of years. But we always recommend segregating some of your IRA money into an emergency fund so as not to “bust” the plan. In that way, you could take additional monies and pay the 10% penalty on only that emergcy distribution, but not on all of your distributions.2007-10-18 14:45, By: dlzallestaxes, IP: [141.151.95.239]