Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think you should see an accountant, and get their help in planning out your money. It will show you what exactly you['ll be living on and ease your anxiety.

I am close to DH in age and I think about this all the time. I have non-trivial medical issues. For life insurance, my health means I am basically un-insurable. In my case, I will try to keep working at least until age 65 because of all the financial risks of retiring earlier — and the financial penalties of tapping retirement accounts early.


Do see a CPA in your state, not merely an accountant, see an actual CPA. Also ask them how to budget and how to structure your assets to minimize tax exposure. Ask how to plan retirement funds withdrawals to avoid penalties and minimize taxes. A CPA is not an investment advisor, so go to BogleHeads.com and ask financial questions there. The mainstream answers at BogleHeads usually are solid advice.

There generally are penalties for withdrawing from any IRA or 401(k) or 403(b) if below a certain age, which I think might be 62.

***Are you both really comfortable living entirely on your income - with no retirement funds - until he is 62? What if you get sick and can’t work? What if he has expensive medical issues in future?

Also, one can’t get Medicare health insurance until age 65, yet older people are more likely to have health issues. So onecreally wants workplace medical insurance until then. (As a contractor, I cannot buy any group medical insurance. Obamacare insurance costs too much. So we rely on spouse’s workplace medical insurance for now.)

Last, Social Security income is not as high as some people think, and there are big financial penalties/greatly reduced monthly payments if tapping that before around age 68 or 70 (not sure of age details, ask the CPA).

Above all, don't buy an annuity. The fees and structure of an annuity mean they are almost always a bad investment for normal people. Maybe billionaires are an exception…

You can withdraw penalty free at 59 1/2 from the last job 401k, same with iras

You can also withdraw penalty free starting the year you turn 55 from your current company’s 401k once you separate.

IF your employer's 401k allows it.

Anonymous wrote:He needs a psychologist not a retirement.

Anonymous wrote:DH and I both work. He provides the benes and I am an independent contractor. He has always been very hardworking, successful, a good provider. My work is quite steady i work about 0 to 10 months a year. I can get benefits if I need to. It will be more expensive. We've saved a lot over the years but are not rich, but definitely comfortable. DH is 56, I am 53. 6 months ago he had a routine operation that nearly killed him. He had a 3 month recovery to get mostly back but he will never be 100%. After his 3 month medical leave je went back to work but his zest for work is gone. Prior to this health crisis he was planning on retiring at 60. We were always prepared and ready for that. I'd continue working til medicare kicks in. Now as soon as he turns 57 he wants to retire. It's 3 years early. So we are facing retirement in 8 months. We are already downsizing our house to be mortgage free. We don't have revolving debt or car loans. I'm having a little anxiety. Not sure what I'm writing this post for other than to see if anyone else has had similar journey. My DH told me his brush with death just really shook things up. We also have a med mal case that we are actively engaged in. I primarily manage this, but this case will take a couple years. Has anyone ever had a change of life like this where something happens that causes you to reevaluate everything? Any suggestions or tips?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think you should see an accountant, and get their help in planning out your money. It will show you what exactly you['ll be living on and ease your anxiety.

I am close to DH in age and I think about this all the time. I have non-trivial medical issues. For life insurance, my health means I am basically un-insurable. In my case, I will try to keep working at least until age 65 because of all the financial risks of retiring earlier — and the financial penalties of tapping retirement accounts early.


Do see a CPA in your state, not merely an accountant, see an actual CPA. Also ask them how to budget and how to structure your assets to minimize tax exposure. Ask how to plan retirement funds withdrawals to avoid penalties and minimize taxes. A CPA is not an investment advisor, so go to BogleHeads.com and ask financial questions there. The mainstream answers at BogleHeads usually are solid advice.

There generally are penalties for withdrawing from any IRA or 401(k) or 403(b) if below a certain age, which I think might be 62.

***Are you both really comfortable living entirely on your income - with no retirement funds - until he is 62? What if you get sick and can’t work? What if he has expensive medical issues in future?

Also, one can’t get Medicare health insurance until age 65, yet older people are more likely to have health issues. So onecreally wants workplace medical insurance until then. (As a contractor, I cannot buy any group medical insurance. Obamacare insurance costs too much. So we rely on spouse’s workplace medical insurance for now.)

Last, Social Security income is not as high as some people think, and there are big financial penalties/greatly reduced monthly payments if tapping that before around age 68 or 70 (not sure of age details, ask the CPA).

Above all, don't buy an annuity. The fees and structure of an annuity mean they are almost always a bad investment for normal people. Maybe billionaires are an exception…

You can withdraw penalty free at 59 1/2 from the last job 401k, same with iras

You can also withdraw penalty free starting the year you turn 55 from your current company’s 401k once you separate.

Anonymous wrote:

Anonymous wrote:Funny part is I think 100 percent of people 60-65 are healthy in high paying jobs. Which is true for all the people 60-65 I interact with regularly.

Why is that?

In business you only interact with people still working at your level or higher. When people are laid off, get sick, die etc. they just disapear.

The fact is the working people 60-65 often just picked majors at 18 that are still relevant, companies still in business, got lucky with health and had good bosses and companies that invest in employees.

Which is why the ones remaining have very little good advice.

Nearly 90 percent of people I started work with are now retired, dead or laid off. None of them retired early. Why, well I was very lucky and in an amazing Mgt Training Program at a top tier company in NYC in 1986. That is 40 years ago. Meaning oddly we started on fast track with great jobs, staff etc at a young age. Type of career you dont give up. But sadly layoffs, illness and death took a toll over 40 years.

Everyday above ground is a good day.

The ones you don’t see didn’t disappear… they are playing golf, doing yoga, hiking, traveling.

Of course you don’t see them, you are stuck in an office.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Definitely see a financial planner before making this decision. My in-laws retired early -- in their 60s -- and were well off financially at that time. But now they're in their 80s and have no savings left and living off Social Security and a small pension. They aren't starving, but they aren't doing great either.

They really made some bad decisions with their money because, in part, I think they never wrapped their heads around what it really means to live off retirement savings. They didn't have a plan. But I know other people who retired early, had a plan, had the numbers to back up the plan, and it worked great.

did they spend too much early on?

Yes, they spent too much early on. Their retirement plans seemed modest on paper, but in real life, it all ended up being so much more expensive then they realized it would be. So the lesson I learned from them is to really crunch the numbers, be realistic about what expenses you'll have, make sure you have an emergency fund. Even better to have two emergency funds.

Anonymous wrote:

Anonymous wrote:Definitely see a financial planner before making this decision. My in-laws retired early -- in their 60s -- and were well off financially at that time. But now they're in their 80s and have no savings left and living off Social Security and a small pension. They aren't starving, but they aren't doing great either.

They really made some bad decisions with their money because, in part, I think they never wrapped their heads around what it really means to live off retirement savings. They didn't have a plan. But I know other people who retired early, had a plan, had the numbers to back up the plan, and it worked great.

did they spend too much early on?

Anonymous wrote:Definitely see a financial planner before making this decision. My in-laws retired early -- in their 60s -- and were well off financially at that time. But now they're in their 80s and have no savings left and living off Social Security and a small pension. They aren't starving, but they aren't doing great either.

They really made some bad decisions with their money because, in part, I think they never wrapped their heads around what it really means to live off retirement savings. They didn't have a plan. But I know other people who retired early, had a plan, had the numbers to back up the plan, and it worked great.