Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I'm married and have retired at the age of 58. My company pension plan pays me about
$2000/month. Included in my retirement plan is family med/dental at standard employee
rates. Have long term disability coverage for me and my wife.

I have one child who goes to college next years and 'if' necessary, I have the entire cost
covered via stocks/mutual funds holdings. Cars and home are paid for.

My company 401 and it's balance of about $500,000 were left with the company I
worked for when I retired. I have full access to it and have not started any withdrawals
from it. I am subject to the required 20% holdback for taxes but am NOT subject to the
10% penality for withdrawals. Once withdrawals start (ie; an amount or percentage/
month) that amount can never be reduced, only increased at my request. At some future
time, I can withdraw all or part or roll overover the entire into another plan if desired.

I am thinking of starting a $2000/ month withdrawal with the 20% deduction for taxes.
The monies in the company 401 are/can be put into a number of different accounts
ranging from cash accounts to large cap, small cap etc. Assuming my 401 returns grow
at a greater rate that the $24000/YEAR I want to take out monthly . . . WHAT HAVE I
OVERLOOKED in this situation before I start taking a distribution??
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement