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Old 12-05-2018, 05:19 PM
 
Location: SoCal
13,295 posts, read 6,362,704 times
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Quote:
Originally Posted by Beach Sportsfan View Post
This as well as doing my calculations that it would take me 22 years at a 4% return on investment for taking SS at FRA plus the fact that no male in my family has gone past 82 due to heart issues changed my opinion and I will take mine early at 62. If I make it past 84 then Iíll be more than happy and still have enough between pension,SS and investments to live well.

Enjoy life we donít know how long we have or how much of it we will have healthy enough to enjoy it.
I donít worry about breakeven, I worry when I hit 90, my body and brain is already declined, SS is therefore me. Iíve calculated, my husband and I have very good chance of living well into our 90s, not a guaranteed, but reasonable chance. Thatís all I need to delay. Plus in a couple, it makes sense for one to delay. Not both.
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Old 12-05-2018, 05:47 PM
 
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Originally Posted by NewbieHere View Post
I wouldnít do Roth conversion, I read you need about $800K in traditional IRA to make sense. Bogglehead had a thread on this. The 401k should be rollover to an IRA.
This is generally true, but a significant source of taxable income (that 78k per year pension) changes the math. For OP, it is worth considering.

But even if RMDs do kick in, they only require you to withdraw the money. There is no requirement to spend the money. People can set it aside if they choose to do so.
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Old 12-05-2018, 05:54 PM
 
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Quote:
Originally Posted by NewbieHere View Post
I donít worry about breakeven, I worry when I hit 90, my body and brain is already declined, SS is therefore me. Iíve calculated, my husband and I have very good chance of living well into our 90s, not a guaranteed, but reasonable chance. Thatís all I need to delay. Plus in a couple, it makes sense for one to delay. Not both.
If thatís what you have decided is good for you then you should do it. As I said everyone must decide whatís right for them and is where you feel more comfortable and at the end of the day enjoy retirement without regretting the decision you chose.
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Old 12-05-2018, 06:25 PM
 
Location: Buckeye, Arizona
273 posts, read 109,264 times
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Originally Posted by NewbieHere View Post
If you have other money then itís much easier answer, take the 401k and delay taking SS until 70. Thatís what I would do. Itís wise you didnít mention the rest. I was wondering how you could have such high pension(means high income when youíre working) and not have other savings, now it makes much more sense.



I wouldn't think being K-12 teachers would be a high pension? This is the total between the two of us? is it really that high? It's Iowa, we are teachers? really?
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Old 12-05-2018, 06:27 PM
 
Location: SoCal
13,295 posts, read 6,362,704 times
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Quote:
Originally Posted by Beach Sportsfan View Post
If thatís what you have decided is good for you then you should do it. As I said everyone must decide whatís right for them and is where you feel more comfortable and at the end of the day enjoy retirement without regretting the decision you chose.
Well yes, itís in response to your comment about your family health issues and break even point. My SILís mom was not even healthy at 60, she didnít think she could make it, short and fat, now sheís just celebrated turning 90s, in a wheel chair, but not decrepit. So again, you never know. If I happen to live long, I plan to live well, so if Iím dead before that then itís moot point.
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Old 12-05-2018, 06:30 PM
 
Location: SoCal
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Originally Posted by 4khansen View Post
I wouldn't think being K-12 teachers would be a high pension? This is the total between the two of us? is it really that high? It's Iowa, we are teachers? really?
I thought it was for one person. But itís still nice, itís like having a net worth of $2.5 million, thatís how you get almost $100k pension per year, if you assume 4% withdrawal rate.
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Old 12-05-2018, 06:40 PM
 
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You can't live on $8,300 a month?
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Old 12-05-2018, 08:29 PM
 
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Originally Posted by 4khansen View Post
I wouldn't think being K-12 teachers would be a high pension? This is the total between the two of us? is it really that high? It's Iowa, we are teachers? really?
The majority have no pension at all. So yes, 78k per year is high.
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Old 12-05-2018, 08:35 PM
 
Location: SoCal
13,295 posts, read 6,362,704 times
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My calculator says $8300 per month times twelve is $$99.6 K, where is $78k come from?
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Old 12-05-2018, 09:13 PM
 
Location: Washington State
18,614 posts, read 9,618,463 times
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Originally Posted by 4khansen View Post
Of course I can live on $8,300 a month in Iowa or in Arizona in a few months.... just want to live as well as I can basically anywhere I decide to live ;-).


As I mentioned, we don't necessarily need to take the money either way and may just decide to do neither until I am 70. We have other stocks, savings, 403b accounts, Roth IRA, regular IRA etc. that we don't plan to use on a regular basis until RMD's start. I'm glad I didn't mention those accounts, etc lol. Who knows what reaction that would have gotten me. I was just getting some feedback and what people think about extra income for those years between 64 and 70.


Looking at just those two income streams (that particular 401k and social security) I just thought one of the two would be nice extra money to have in my monthly spending budget. How to decide between each and how that affects our current and ongoing spending habits until I turn 70.
My situation has some similarities. But my 401K is multiple times higher than yours and I don't have as much pension income as you have. We have paid off rentals that net us about $2500/mo so that's potentially part of our living expenses.

I'm a few years younger than you and about to retire in the next couple of months. I'm trying to avoid taking money out of my 401K but I will if I need it.

I'm running scenarios of wintering in Arizona and the rest of the year in the PNW versus moving to Arizona versus staying all year in the PNW.

About the extra income, I think you should hold off if you can, that's my opinion as a financially conservative person.
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