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Financial Planning / Tax Strategies


Subject:  Retirement Spending Date:  7/26/1999  2:34 PM
Author:  Tom345 Number:  17672 of 127616

I am 54, planning to retire at 55 or 56. Have recent inhheritance of 400,000 plus 200,000 in 401K at work and about 70,000 in other stocks and own a modest home worth $100,000, paid for. Kids college paid for. No debts. Want to travel, possibly invest in vacation codo on the beach, in Delaware or New Jersey.

Pension will be $45,000. Have invested 200,000 of inheritance in mutual funds at Vanguard, about half in total stock market.

I was thinking about letting 401K grow while spending down inheritance money because 401K will grow tax deferred. Wife thinks shouldn't spend down any money, keep all principle and only spend earnings because later we will be taxed on 401K as ordinary income and may go over into 31% tax bracket after her pension (minimal - about $4000 a year) and both of our social securities are in place because pensions and social security for both of us at 62 will total $75,000 a year.

Can you give us some advise?
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