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Subject:  Re: A plan to consider!! Date:  7/28/1998  11:21 PM
Author:  TMFPixy Number:  4734 of 96381


I'd like some feedback on this tentative plan:
-Retiring at around 52 years of age.
-Getting about 65% of pay.
Annuitizing 401K and 457 plans with equal monthly payments over my life time. The combination should give me equivelant to about 100% pre-retirement pay.
-From a well diversified portfolio of quality stocks, each year cash in 10% of the amount by which each has appreciated (leaving the laggards alone)and supplementing income to combat inflation- meanwhile reinvesting all dividends.
-At a leisurely time start drawing on Roth IRAs as further supplement of income.
-At age 62 begin receiving SS (if it's still there).
This should theoratically leave the portfolio of stocks in tact permenantly.
OK- anything wrong with this picture?
Thanks for any feedback.

You don't have a defined benefit plan, so a Social Security offset won't apply. Your 401k and 457 plans are contributory, so you get cash instead of an annuity (unless you annuitize them voluntarily). The only drawbacks I see are 10 years of zero wages in calculating your SS benefit, becoming ineligible for SS disability payments after you've been retired for five years, and the need for medical insurance already mentioned by others. If you've run the numbers and have considered these things, then go for it. Otherwise, take a harder look.


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