Talk of The Villages Florida - View Single Post - 401K, IRA and Pension withdrawals
View Single Post
 
Old 07-02-2011, 09:28 PM
rjm1cc's Avatar
rjm1cc rjm1cc is offline
Soaring Eagle member
Join Date: Apr 2010
Posts: 2,470
Thanks: 268
Thanked 581 Times in 283 Posts
Default

The way you ask the questions it implies that you will need the money from the pension and 401k now. If true then I would think you stand a good chance of running out of money in retirement. If it does not make economical sense to stay in your current job and you save the pension that could be a different story. Be sure your budget includes health care expense and annual adjustments for inflation.
Search the internet for discussions on SWR (safe withdraw rate). In general you can spend 4% of your assets each year and be OK. When you do the research you will see that 4% is probably too high for you if you start drawing now.
Also look at starting SS at age 70. If you are assuming a long life then it pays to wait if you can. Spend your assets down to get to age 70. If you are married one of you should start collecting at your normal full retirement age.
This is a complicated area so look for a financial planner to make up a plan for you. Probably cost a few hundred dollars. You want a planner and not a stock broker. The planner's duty is to give you the answer that is best for you. The broker does not have that duty and can sell you products that may not be in your best interest but are in his.