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Old 05-19-2014, 12:28 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,654 posts, read 40,029,981 times
Reputation: 23810

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ask around a little (to planners), they will all do a preliminary work-up, and will probably all have a different scheme.

THEN... study and learn...(and use tools mentioned above)

Then go back to a planner if necessary. But STUDY study study... no one should be more interested in YOUR money that you.. but there are lots of sharks.

I left employment 17 yrs prior to retirement age, and wish I would have done it 20 yrs sooner.

I draw accts based on my particular tax strategy for that year, and the yr's results. I try to keep below 6% tax on AGI.
I purposefully leave my highest growth stuff in ROTHs, and in really low tax yrs, I roll more to ROTH. (I just happen to think I will have higher than 10% tax obligation in later yrs... but I may be wrong (as usual)).

I was gonna do a 72t, but decided against, to keep deferred monies working for me. If you have plenty (which I did) you can carefully make 72t work out for you. Be very careful to allot and manage properly, or entire amount will become taxable. (as happened to many during economic downturn). Your distribution is FIXED, so you best have adequate capital to sustain a haircut!

Consider a bunch of income options that you might have available, or assemble to keep from eroding Retirement capital. (PT jobs, temp jobs, selling / downsizing, Collector sales, eBay, self sufficiency, renting out rooms, gambling... and many more sources of income). Check out Younglisa blog (on CD)... they do R&R 'flip homes' during winters. I would seriously consider doing flip 'primary' homes ($500k tax free gain every 24 months). Beats working. I keep rural places that have shop with apartment + a fulltime renter in the main house. Thus I have free place to live, and to stash my stuff if I do a flip 'Primary' residence. You just need to appear to live there... (Get a mailbox, change your accts, file taxes, get utilities, buy groceries and gas nearby...) a Teepee or RV will work. I rolled a commercial zoned place that way. (it had a barely livable farmhouse that was bulldozed when I sold it). I used it as a primary residence, but was not home much (I currently travel more than 50% of the time).

Due to USA government torpedoing all 5 of my previously available and (barely) affordable healthcare options...
I am currently doing an overseas Temp gig to get healthcare for an ill spouse and to enjoy the great travel perks.

There are a lot of ways to float the boat. But I am sure glad I quit 'paddling' before age 50. Age 30 would have been even better (Spend time at home with kids)..
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Old 05-19-2014, 02:35 AM
 
Location: Haiku
4,183 posts, read 2,599,410 times
Reputation: 6163
There are tons of resources to help you out:
- Read this forum, but then you need to sort out the 10 different opinions you will get.
- Go to Schwab, Merrill Lynch, or any investment house. If you have much money they will be eager to win your business and will give some free advice. And I mean go there in person. Go to more than one. These guys know the rules and can quickly answer questions for you. It will be free. You don't have to do any business with them to get the advice. If you have a lot of money, they will even run a RIP (retirement planner) for you, and give you a nice shiny print out of the plan and the results.
- Lots and lots of books on the topic are out there. And cheap too, since nobody reads books any more.
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Old 05-19-2014, 03:23 AM
 
71,798 posts, read 71,896,917 times
Reputation: 49350
you can start here with this excellent video by christine benz from morningstar. one of the best to date i have seen in my opinion for learning the basics..

http://www.morningstar.com/cover/vid...1676&SR=EVZ128
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Old 05-19-2014, 04:49 AM
 
Location: Tampa, FL
27,798 posts, read 26,244,921 times
Reputation: 14611
Quote:
Originally Posted by StealthRabbit View Post
But I am sure glad I quit 'paddling' before age 50. Age 30 would have been even better (Spend time at home with kids)..
Glad to hear someone else say this. I retired early at 47 (4 yrs ago) and still have to defend my decision to others.
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Old 05-19-2014, 06:54 AM
 
8,210 posts, read 11,929,872 times
Reputation: 18034
Quote:
Originally Posted by StealthRabbit View Post
I was gonna do a 72t, but decided against, to keep deferred monies working for me. If you have plenty (which I did) you can carefully make 72t work out for you. Be very careful to allot and manage properly, or entire amount will become taxable. (as happened to many during economic downturn). Your distribution is FIXED, so you best have adequate capital to sustain a haircut!
No, that's not quite correct. The distribution is only fixed for one calendar year at a time. Each year the calculation is based upon your account balance at the end of the previous year, divided by your life expectancy. This amount will be different each year. So if your account suffers a "haircut" from a down market one year, your withdrawals the following year will be reduced accordingly. There's not really a possibility of running out of money when you're taking substantially equal payments under 72t due to a down market, so the bolding warning above isn't actually an issue.
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Old 05-19-2014, 10:47 AM
 
Location: Native Floridian, USA
4,907 posts, read 6,125,439 times
Reputation: 6117
Having worked with all of this but no expert. Mostly very good advice. Not all of these planners are knowledgable or as honest as they should be. I know from experience, working with clients with these issues across a wide spectrum of planners. Learn, learn, learn. Talk to different people about their experiences. You will be okay, no expert but aware.
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Old 05-20-2014, 08:55 PM
 
Location: Columbia SC
9,004 posts, read 7,770,007 times
Reputation: 12234
I do not trust "planners" that have something to sell me. Visit (and pay for) a fee based planner.

Also seems many of your questions are CPA related meaning how to avoid (not evade) taxes, financial penalties.
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Old 05-21-2014, 02:17 AM
 
71,798 posts, read 71,896,917 times
Reputation: 49350
you might not trust them but some of the best ones do offer products . on the other hand fee based may not have products to sell because they lack the credentials and knowledge to even sell them.

fee based may not care how you do financially since they have no vested interest. do you really think a fee based planner may not get a finders fee for steering you to certain products even though they do not sell them directly? you are kidding if you think that is not what goes on.

never judge a book by its cover nor a planner on how they get paid. the planner i intend to see when i am ready most certainly does have products to sell but that does not mean i have to buy them.

Last edited by mathjak107; 05-21-2014 at 03:40 AM..
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Old 05-21-2014, 09:51 AM
 
Location: Florida
4,376 posts, read 3,714,793 times
Reputation: 4116
Quote:
Originally Posted by Tallysmom View Post
Sort of a crazy question, I guess, but when I try to figure it out I get very generalized answers like "the 4% rule" or take it from your savings or other answers that don't get to the crux of the issue.....

We've been saving for retirement for a long time, and we have a few accounts -- my IRA rollover, his IRA rollover, a SEP-IRA.... and different mutual funds in each, and those have scrambled from one sale to another sale to cash and back into completely different funds... so I have no idea which is first in to pull those out first....

and while we aren't ready for retirement... if I do have to recreate a first in to do a first out with.... that will take some time.... If it means anything we are 12 years away from full retirement age, but I expect we'll be done working in three years, and while we do have some cash, I'm also thinking we might use the 72T rule to start drawing from our retirement funds.

Can anybody give me an idea?
From your post there is a good chance you have put a lot of thought into the problem. You would use the funds that give you the lowest income tax. Sounds like you need a fee only planner or a CPA which specializes in financial planning.
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Old 05-24-2014, 07:20 AM
 
Location: Maryland
282 posts, read 306,422 times
Reputation: 338
Quote:
Originally Posted by mathjak107 View Post
you can start here with this excellent video by christine benz from morningstar. one of the best to date i have seen in my opinion for learning the basics..

Ready Your Portfolio for Retirement
I liked the video, and I downloaded the slides to review in the future.
Although she mentions guaranteed sources of income sources like Social Security, certain annuities, and Pensions; Some people can tolerate more risk if a large part of their retirement income is from these sources. i.e. the investments can tolerate more risk since the others are so conservative (safe). For example a long term federal employee (CSRS retirement plan) with 40 years of service (and 7% payments into CSRS) will have a good inflation adjusted pension. But they did work for it and contribute to it.
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