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Originally Posted by rjm1cc
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.
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Thank you for the advice about getting a financial planner. I believe I will contact my credit union about that when I return from my upcoming visit to TV. I'm still working full time now, so I don't need the money from the 401K, IRA and pension at this time. Some years down the road if I do decide to move to TV, I will still need to work, probably at least 30 hrs. per week, but I know that salaries in the TV-Ocala-Leesburg area are not as high as in the Chicago area, so I would need to start withdrawals from my pension, IRA and 401K (let's just say at age 60) to supplement any income from a job. As I won't have a mortgage payment by the time I move to TV, I believe my expenses should go down quite a bit, as my mortgage payment is by far my largest expense. Yes, I did some research about what percentage you can withdraw and 4% annually was the figure that most web sites mentioned.
When my dad reached 70 1/2 11 years ago, he still hadn't touched the money from his IRA, but he then had to start taking withdrawals from it each year since then. Not sure what he was waiting for...but I guess he had his reasons.