Topics

1

Early Retirement / Salary Deferral Distribution

« on: December 23, 2022, 03:34:28 PM »

I quit my job back in Apr, 2022 to Coast FIRE in 8 years. 

Now on a Freelance contract till Jun, 2023 and expected to make 80K in 2023.

My salary deferral plan (457) from ex employer begins distribution in Feb, 2023.  I have an option to spread it across 5, 10, 15 years.
Current balance is 400k and interest is accrued during the distribution phase averaging between 6-7% per year.
 
For 2023, if we spread the 457 distribution across 10 or 15 years we remain in 22% Marginal bracket, if 5 years it will be 24%. Not sure after 2023, depends on my gig income. We can meet our expenses with my spouse's reatively stable income + any of 5, 10 year (not 15 yr) distribution.

Question: Not able to decide to go with 5,10 or 15 years distribution? Any thoughts very much appreciated.

Thanks for your help!
Sam

2

Early Retirement / Should I FIRE or Continue

« on: March 04, 2021, 08:24:47 AM »

I am a huge fan of GCC, been following his blogs for several yrs. Thank you for helping us out of this rat race!

I am 50, my spouse 47, both on full time jobs. kids: 18 & 12. State: VA

Retirement Accounts -  1500k (100% stocks, index funds. Our contribution + ER match = 60k/yr)
Brokerage Account - 300k (VTI, SPY)
My 457, deferred comp - 330K (on separation can begin distribution or can delay it to any future date,
                                          can spread it: 5, 10 or 15 yrs. Historic rate of return: 7%)
529 - 100k (NV 529, SP500 index fund. Need 100k more to support kids thru college over next 10 years)
Home Equity: 300k
Cash: 75K
Total: 2600k

Loans:
 Mortage bal: 320K @ 2% (just refinanced to 30 years)
 Auto Loan: 20K @ 1.5% (5 years left)
 No other debt.

Spouse, brings 100k annually, likes her job, can continue for at least 3 more years. But I would like to call it ASAP:)
Need:
  72 - 84k per year
  100k kids college expense; over 10 years)

Currently on my Health Insurance, can switch to spouse's, it's decent coverage with HSA ( I don't have HSA).

Questions:
1. Unable to decide if I should quit my high paying and very stable job or continue 4 more years, then use age 55 rule? I am not a huge fan of my job, should I quit and do a freelance IT job, Part time/Full Time for a few months in a year?
2. If we both quit within the next 3 years, what is the best way to pull 72 to 84k + 100k for kids college over next 10 years?

Thanks so much for the help.