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My annual "wasn't I just here" visit!
I told him I want to have an appointment with him after tax season and when I get my annual pension statement. I don't want traditional financial advice but want to understand the tax implications of retiring (taking my pension) at 64 and 8 months, selling my house and making a profit, and spending four months of retirement in Massachusetts and the rest in my new state of Colorado.
He gets that my questions might not have concrete answers, did ask if I can get COBRA (yes) and that financial decisions have a lot of emotional content in addition to precise answers.
I am going to have to do something if I want to wait until 66 for Soc Sec. Maybe live off some of the house sale proceedings in addition to pension, maybe take a chunk of the pension as a chunk (and owe income tax on the chunk next year), maybe just bite the bullet and take Soc. Sec.early. You see these are more emotional decisions but I want to see what the tax implications are.
I am not involved in my 403b anymore. Croaked it to buy my building lot in Colorado, worried about the markets in the current political climate, plus deciding that my pension is quite enough.
The questions are always there, when to retire, where to pull money if fortunate enough to have choices, how long to work (it's affecting my health in a big way, and I want out sooner not later). I so appreciate my accountant- have known him for many years, way back when he used pencils and paper!
If it's only a year and 4 months early I would look into filing for SS when you retire rather than take a lump sump from your pension which lowers the payout (I assume) and is taxed.
So why not keep working until age 66? It sounds as if your Colorado property is still just that, land upon which a dwelling will need to be built. Will you use the proceeds from the sale of your existing home to build the new one? Where will you live in the mean time?
I will be having my house built this summer, and paying both mortgages until I sell my current house (have a cash buyer waiting in the wings). I will leave this house to my buyer, get in the car, drive for four days or so, and take me and my dogs to my new house, complete with fence for the backyard and the dogs.
My job has affected my health. First with weight and tension on the nerves in my neck and back and a need for medical reconstruction (breast reduction) to reduce the pressure from undergarments. I am now two weeks out from the surgery and the sharp nerve pain is just gone, so it's been a real success.
I gained a lot of weight from the metabolic disaster of working overnight shifts and the cortisol increase from that stress. Also, my job is inherently stressful (RN at a psych hospital) in addition to the physical stress of shift work. I became marginally diabetic (controlled with a small dose of oral medication) and then had stomach surgery, lost half of what I needed to lose, and am now not diabetic with the same small dose of medication. (HgA1C of 6.0 on 1000 mg Metformin). I had a tummy tuck along with the breast reduction- not covered by insurance but I got a really good deal for doing the covered surgery at the same time) and am now recovering and must say that the tummy tuck is a seriously painful operation to have. (Breast reduction was a breeze).
I have been sleeping at night, like at midnight to morning except for pain awakenings, and do not miss working at all, although there is little I can do this soon post-surgery.
Yes, if I worked until 66, it would all be obvious what to do and why. However, my hopes and plans for retirement to Colorado also include being quite active, initially with horses (both riding and being involved in therapeutic riding for people with disabilities) and I hope to exercise (swim, circuit training) as soon as possible. I used to be not-fat and quite athletic and I know I blame a lot on my job, but I think it's deserved!
Shift work and psych work has also had an effect on my own fragile mood- easier to get down when sleep deprived. It has provided me with security and freedom (money) and a sense of having at least tried to do some good in the world, in something where I seem to have some real skills. But yes, I'm finished. I want out and I want the change to the Mountain West. If something occurred (illness or something) where I couldn't move, I'd be disappointed, but content that I tried my best to live fully and actively. I think I'd still be looking to retire but maybe would go part-time until 66.
Oh, and I got a sprained neck and another time, a tissue-crush injury at work in difficult situations. Both time, weight loss and chiropractic and acupuncture have at long last seemed to fix those problems, and the breast reduction solved the nerve zinging. My left arm especially was losing function along the nerve branch and I think that will be OK now.
I wish you the best in your future, brightdoglover. I have followed your posts for a long time, and now I know exactly what you do. Yes, very, very stressful. I am very happy for you and your future plans and move. You deserve it.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Have your nice MA acct give you a tutorial in tax scenarios and how to use Turbo Tax or Taxcut to do scenarios and your own taxes in Colorado. (Actually it is kinda fun playing with numbers, especially when you are SAVING your own dough on taxes!)
I think I would avoid any big payouts from qualified moneys at this stage of your adventure. Ability / interest to work later may not be possible, and you might need that lump of dough later. Distributions are better in a yr without income (you may have plenty of those in the future)
You can skimp while you are motivated. (and young)
There is no work in my field where I am going.There might be something in about three years (new medical center) and I could see driving the 50 miles once or twice a week.
Before my RN (and during it for several good years) I worked in copyediting. I love it.It's like riding a good wave for me.
I do plan to try and find some remote work once I get settled, but don't want to rely on finding it. I see a great need for proofing and editing everywhere, yet there's no work!
I am working on learning to live quite quietly. My major expensive taste had been vacations out West/boarding dogs. I am likely to get a horse life in barter for volunteering with the therapeutic riding program and am in good contact with the woman who runs the program and has the horses. We've already discussed this. (I do not want to own a horse or otherwise be responsible for one but do love riding in sight of the mountains).
I am waiting to acquire some cheap tastes as I get older. Still waiting.
I will be having my house built this summer, and paying both mortgages until I sell my current house (have a cash buyer waiting in the wings). I will leave this house to my buyer, get in the car, drive for four days or so, and take me and my dogs to my new house, complete with fence for the backyard and the dogs.
My job has affected my health. First with weight and tension on the nerves in my neck and back and a need for medical reconstruction (breast reduction) to reduce the pressure from undergarments. I am now two weeks out from the surgery and the sharp nerve pain is just gone, so it's been a real success.
I gained a lot of weight from the metabolic disaster of working overnight shifts and the cortisol increase from that stress. Also, my job is inherently stressful (RN at a psych hospital) in addition to the physical stress of shift work. I became marginally diabetic (controlled with a small dose of oral medication) and then had stomach surgery, lost half of what I needed to lose, and am now not diabetic with the same small dose of medication. (HgA1C of 6.0 on 1000 mg Metformin). I had a tummy tuck along with the breast reduction- not covered by insurance but I got a really good deal for doing the covered surgery at the same time) and am now recovering and must say that the tummy tuck is a seriously painful operation to have. (Breast reduction was a breeze).
I have been sleeping at night, like at midnight to morning except for pain awakenings, and do not miss working at all, although there is little I can do this soon post-surgery.
Yes, if I worked until 66, it would all be obvious what to do and why. However, my hopes and plans for retirement to Colorado also include being quite active, initially with horses (both riding and being involved in therapeutic riding for people with disabilities) and I hope to exercise (swim, circuit training) as soon as possible. I used to be not-fat and quite athletic and I know I blame a lot on my job, but I think it's deserved!
Shift work and psych work has also had an effect on my own fragile mood- easier to get down when sleep deprived. It has provided me with security and freedom (money) and a sense of having at least tried to do some good in the world, in something where I seem to have some real skills. But yes, I'm finished. I want out and I want the change to the Mountain West. If something occurred (illness or something) where I couldn't move, I'd be disappointed, but content that I tried my best to live fully and actively. I think I'd still be looking to retire but maybe would go part-time until 66.
Oh, and I got a sprained neck and another time, a tissue-crush injury at work in difficult situations. Both time, weight loss and chiropractic and acupuncture have at long last seemed to fix those problems, and the breast reduction solved the nerve zinging. My left arm especially was losing function along the nerve branch and I think that will be OK now.
I've been following your posts with interest. You have a good vision of where you want to be and that is what will get you there; no nebulous some day or someplace that won't happen for you.
Unless you've worked in the medical field and done overnight shifts, it's hard to understand how hard it is on the body. It really does take a toll over the years and especially in a psych hospital. Not only can it be the hard work of a laborer, but the stress of an very cerebral occupation, making it a physically and mentally difficult career at times.
Being proactive with your surgeries and by getting them out of the way, you are going to be in a good place in your life to retire. You have a great attitude, giving a nod to negatives that could happen, but not becoming mired in them. I'm cheering you on and looking forward to vicariously living through your upcoming move and retirement.
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