L1: retirement strategyi will be 55 next year and will take early retirement. i will be getting lump sum pension of near 200k . i have 401k now with approx 75k. company does not allow flexible withdrawals though. if i plan on setting up a 72tplan with the larger amount how go about addingroughly half of the 401k amount to the plan i will use for sepp distributions?that way i coulduse some funds in the smaller acct for any unforseen emergencies. (i know about the tax implications of doing this)2009-11-18 02:52, By: witty, IP: [22.214.171.124]
L2: retirement strategy
I hope that you either have considerable other assets or plan to work at least 1/2 time once you retire. The amount that you mention here does not seem adequate as a retirement war chest that may have to last you 30-40 years.
I suggest that you use the SEPP calculators on this web site to determine exactly how much income your nestegg can generate in terms of SEPP payments. If this amount meets your retirement needs, then great. If not, then an alternative strategy is needed before retiring at age 55.
Remember… when one is planning for retirement in general and early retirement in particular, a bear market can severely impact your savings. Stocks are most affected by bear markets but bond funds can also lose a significant portion of their value. Only cash comes through a bear market unscathed but its earning potential is meager, so it may not be able to generate the income you need.
2009-11-18 07:15, By: Ed_B, IP: [126.96.36.199]