Fundamental ???

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L1: Fundamental ???Fundamental question. Can you take more thanthe calculated SEPP amount if needed without any penalty?
Just 58, sitting on 1.15 million IRRA. Not working and $$ is running low. Have decided fishing, gardening and raising my grandson is more worthy of my timethan coprorate America. My financial guy says I”m nuts not to go back to work.Is this a viable option or is he right?
Thanks
2007-07-11 12:49, By: Bluefish, IP: [69.141.15.94]

L2: Fundamental ???Hello Bluefish. I assume this is your “fish of choice” as an angler. But on to your question.
There”s really no way to answer your question with the limited information you have provided. Although this site focuses of SEPP Plans, sometimes we get into the planning aspects. But in your case, I would suggest going back to your financial guy and have him give you a detailed explaination for telling you to go back to work. He may be absolutely right … then he may be wrong.
The really important element you are leaving out is how much money do you need per month to live in the lifestyle you desire? I suspect you have a pretty high expectation for lifestyle, given the items you have listed. In acase like yours,I would build a complete Income Distribution Plan for you to determine if you can afford to retire. I have had clients with $1.15 Milwho had plenty of money to live their desiredlifestyle with plenty left over for their kids; and I”ve had clients with $10 Mil plus who were just barely making it.
Go back and have a good, frank discussion with your advisor and make him show you the data supporting his position.
Good luck.
Jim2007-07-11 13:04, By: Jim, IP: [24.252.195.14]

L2: Fundamental ???At 58, I would rarely recommend starting a SEPP because after 59 1/2 you can take any amount that you want without the 10% penalty. I wouldn”t recommend getting locked into a SEPP for 5 years. I”d rather pay the penalty for amounts withdrawn before then, if I couldn”t structure my financial affairs any other way to cover me until I reached 59 1/2. If your “financial guy” isn”t experienced or intelligent enough to discuss these alternative approaches, I would get a new one. If his investment advice has been great, then talk to your tax professional, or get one if you”ve been doing that yourself. It will be money well spent !!!!2007-07-11 13:25, By: dlzallestaxes, IP: [141.151.75.152]

L2: Fundamental ???Hi, Bluefish:
I would suggest that there are many reasons for retiring and that it is up to each of us to discover exactly what those reasons are. I retired at 55 and have been my own “financial guy” for the past 25 or so years. I have an IRA just over 1/2 the size of yours and have no financial worries at all. Of course, my wife had her own career and supplies half of the money we need in retirement.
Still, retirement is about much more than money, as you have found with your grandson, fishing, gardening, etc. Those things are important to me as well but the biggest reason I had for retiring was the tremendous RUSH of freedom that came with it. It is hugely liberating to be in complete control of your own schedule… for the 1st time in ones life. To me, this means a LOT more than collecting more money that I don”t really need.
I could have continued to work for several more years but there are things going on in life that are more important than more money… and more time can”t be created while more money often can. A grand child does not stay a child for long. If we want to participate in their lives, we HAVE to do it while they are still young and we are still alive. Teaching your grandson how to fish will be plenty rewarding.
Being the richest guy in the cemetary has zero appeal to me and, I suspect, to most people. Money is important but time is critical. There is nothing that can be bought that I need so much as to end retirement and go back to work for it.
I would have more faith in your financial guy”s perspective if HE was 58 and looking at life from your angle.
Regards,
Ed2007-07-11 14:47, By: Ed_B, IP: [67.170.159.37]