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Old 08-15-2007, 12:21 PM
Status: "The nicest curve on a woman's body is her smile" (set 13 days ago)
 
Location: Florida/Tennessee
2,360 posts, read 4,302,446 times
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Who has done a 72T?

I'm thinking of doing the 72T, because my wife's income is substantially reduced (RE agent) but our retirement is very healthy. I have a steady, predictable income but her's is not.... certainly with the RE market the way it is.

I understand the rules quite well, but do not know anyone who has actually done a 72T. What the financial planner says, and what people say, can be at either end of the spectrum.

My head says yes, my heart says no. My head is managing the budget and my heart is thinking about retiring in 5 yrs.

For those who have done a 72T... your input and thoughts are appreciated!
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Old 08-15-2007, 01:04 PM
 
Location: WA
5,392 posts, read 21,385,099 times
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I have not done one but do have an associate that has. It did not work well for him as major changes in his income and tax situation occurred after a couple of years and he was unable to change his commitment for several years.
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Old 08-21-2007, 12:44 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,537 posts, read 39,914,033 times
Reputation: 23634
Quote:
Originally Posted by cdelena View Post
I have not done one but do have an associate that has. It did not work well for him as major changes in his income and tax situation occurred after a couple of years and he was unable to change his commitment for several years.
this is the biggest risk, It works best to set up multiple IRA's and do a minimal 72T, you can add future ones if needed, but once your into one....


I haven't had to do one yet, as I have been having good success with PT work, spousal work and Real Estate transactions. It has been a challenge going into retirement pre 50 (no medical or pension benefits) and from a single income. Next step, sell a bunch of stuff ; then live under a bridge; then a 72T. I'm in the same boat tho, as Qualified $$ are a bit high for my future needs, but... expensive things happen in old age. we probably won't have enough
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Old 08-22-2007, 09:43 AM
Status: "0-0-2 start!" (set 13 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,287 posts, read 15,339,626 times
Reputation: 9463
Quote:
Originally Posted by janb View Post
this is the biggest risk, It works best to set up multiple IRA's and do a minimal 72T, you can add future ones if needed, but once your into one....


I haven't had to do one yet, as I have been having good success with PT work, spousal work and Real Estate transactions. It has been a challenge going into retirement pre 50 (no medical or pension benefits) and from a single income. Next step, sell a bunch of stuff ; then live under a bridge; then a 72T. I'm in the same boat tho, as Qualified $$ are a bit high for my future needs, but... expensive things happen in old age. we probably won't have enough
The spouse took early retirement (he's 52, I'm 45), and the package included a lump sum distribution, a dispersement of what he had in the pension fund plus a bit more to make it look attractive, 2 years of continued medical package at employee rates. We took the lump sum distribution and pushed that into a 72T and rolled the pension fund into a regular IRA. The amount the 72T will return is not solely enough to live off of, but it's not bad - he continues to work as a consultant, I work as a book editor (which just about means I work for free, but not quite) and that should meet our needs. We're building a new house in another, lower cost, area that's already paid for and we'll sell this house here in Vancouver and decide how much of that to keep to live on for the next 10 years and how much to save. (Assuming we solve the problem of how to sell a house we - and all of our junk - are still living in.) We do have a chunk of money in IRAs and other non-tax instruments so that in case of emergency we potentially CAN get money.
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