Joining the Ranks

[PancakeBill]

Due to an earlier than expected 'retirement' we are now starting on the next step.  I was recently laid off, and at 55 still a little young for full retirement.  Sooo, we are selling out up here, planning on buying a 5th wheel down in FL, and heading south.  The plan as we now have it proposed, go crazy in May getting house ready for the market.  Put it on June 1.  Hopefully it will sell easily, and while in wscrow have the yard sale etc for furniture etc.  Then Freecycle for the rest. 

Load up the slide-in and head south, trading it in for the 5th wheel at lazy Days.  This way we get to buy lunch for the Dicks and my folks etc...

Timing is to be done with this by Sept 1.  I reaize we can't get life to march to our schedules, but with any luck we will fall within these parameters. 

In the meantime, sending our resumes to local places, and if something good turns up, we stay, pull up the sign and go on as nothing happened. 

So, will be looking into workamper etc, and temp jobes. but hopefully something fulltime down in FL that priovides health care benefits.  Mine last till Sept, then I can do Cobra I think for 18 months. 

We aren't at the point nest egg wise to just stop working, can't draw from 401K without big penalties, so we really need to offset expenses. 

Fortunately the real estate market is good for us right now.

Maybe next year, Moab!

 

[Steve CDN]

In what part of Florida are you heading for, Bill?

 

[Terry A. Brewer]

Bill

>>We aren't at the point nest egg wise to just stop working, can't draw from 401K without big penalties, <<


Yes you can, I retired at age 50 & set up a 72T which allows you to draw a FIXED monthly amount from your account with no penalty for 5 years or age 59 1/2 whichever comes last.


Terry
At Moab, UT

 

[Tom]

Sorry about the layoff Bill. Hopefully this will all work out for the best. Good luck with the plans.

 

[Ron]

Sorry to hear about the layoff Bill.  Hopefully it will work out for the best. 

 

[PancakeBill]

Terry

Thanks, I'll have to check that one out.? but what happens at the 5 years?? then it is a penalty?? I will be 61 n 5 years, so that is last.?

Steve
Zephyrhills is where my folks are in their RV.  They have 2 sites at Emerald Point, so initialy we will rent from them till we figure it all out.

 

[Gary RV_Wizard]

Bill,
There is no penalty for withdrawing from your IRA before 59 1/2 as long as you meet a fairly simple requirement, which is to withdraw "substantially equal" amounts peridically at fixed intervals (e.g. monthly or quarterly) for at least five years.  However, if you stop or change the withdrawals within the five year period, then all penalties become due immediately, including retroactive penalties on previous withdrawals. That applies even if you reach age 59 1/2 during the five year period.  You can make changes after five years.  You need to plan your your first five years income requirements carefully before setting up the early withdrawals because changes will cost you dearly.

This is not some clever dodge and it is well explained in the IRS rules on IRAs.  This rule is set up specifically to allow early retirements such as yours and several of us here are doing just that.  Any competent IRA management firm can set it up easily - all they have to do is to certify that your withdrawals meet the IRS substantially equal, periodic withdrawal requirment and are exempt from the penalty clause.  I found that few local banks had staff knowledgable about this exception to the IRA penalty rules but big investment firms (e.g. Fidelity) and most "financial advisors" were well acqainted with it.  It is called a "72(t) distribution.

Here is a page with some basic info on 72(t). I think the explanation of the  rules on this page is somewhat conservative, so there is still hope if you don't qualify for some reason.    http://www.401khelpcenter.com/Early_Dist_Options.html

 

[Terry A. Brewer]

Bill

>>Thanks, I'll have to check that one out.? but what happens at the 5 years?? then it is a penalty?? <<


There is no penalty after 59 1/2...you just pay the normal tax on any amount you withdraw. When I reach 59 1/2 my broker will redo my accounts & I will then draw whatever I want each month, sometimes more, sometimes less.


Terry
At Moab, UT

 

[Terry A. Brewer]

Gary

In my case I had to plan for 9 1/2 years before I reach? 59 1/2.<G>


Terry
At Moab, UT

 

[Smoky]

Bill:

I did exactly what Terry did and it wotrked out great in all respects.

I am about 8 months ahead of you in fulltiming.  Took me about 8 months to sell the house and some acreage.  Expecting delivery on our MH end of May.  Moving to Montana thus will escape sales tax.

 

[PancakeBill]

Smoky,  what are you doing while awaiting the MH?  Still in the house?  This part of the planning is still a touch on the fuzzy side, but one approach we have is to use the slide-in till we get to FL, then trade in.  A new thought, sell or trade the slide in, get a tow trailer, freeing up the pickup bed space, and use that for a bit.  Ultimately trading for the 5er or a MH. 

Now, you are taking delivery in Montana?  Or getting an address out there, getting it n the east as a deferred sales tax? 

I hear FL is the same as RI in percentage, (7%), so that has no advantage, however the property tax is the big savings. 

 

[Jim Dick]

Bill,

Sorry to hear about the layoff. Will be looking forward to lunch at Lazy Days. We won't get back until November. Wait a minute, is this another way to prevent us from meeting somewhere, somehow????? ;D ;D

 

[Smoky]

Bill:

I close on my land either May 7 or May 17, not decided for sure yet.  That is a non issue in terms of my plans.

I close on my house at about the time I take delivery of the MH.  However my closing agreement allows me 30 days free rent in the house to take care of moving matters. 

We were very lucky on this deal because the guy who bought are land turned around a few weeks later and asked to buy our house as well.  The two properties are adjoining.

The hard part now is getting rid of all our "stuff".  Not an easy task.

We take delivery in Maryland.  But Maryland law allows non residents to take delivery without paying sales tax.  In about two weeks I will have established my Montana residence and Montana driver license.  Thus I will be a non resident by the time I take Maryland delivery.

Maryland allows the issuance of 60 day temporary tags to non residents.  The Montana process makes it very easy to transform these tags into permanent Montana tags if I meet their rules of residency. I cannot remain in Maryland for more than 60 days at a time.

 

[PancakeBill]

Gee Jim, for now I have a little extra time.  As we go along I'll post progress, but for now, everything is up in the air.  House near me have been selling quickly, I hope our does as well.  Then again, maybe someone will make me a great offer tomorrow and we will just stay around.

 

[Jim Dick]

Gee Jim, for now I have a little extra time.  As we go along I'll post progress, but for now, everything is up in the air.  House near me have been selling quickly, I hope our does as well.  Then again, maybe someone will make me a great offer tomorrow and we will just stay around.

We will be back in about 3 weeks. If you're still around let me know. I'll try to arrange a get together somewhere between us and you. Of course, I'll be working again so that might limit the times.

 

[PancakeBill]

Sure, working, rub it in....

I was thinking about applying for your job here at Arlington.

However, my severance pay stops when I get employed. 

 

[Jim Dick]

Sure, working, rub it in....

I was thinking about applying for your job here at Arlington.

However, my severance pay stops when I get employed. 

The pay is not worth the loss of compensation!!!! However, once you lose that benefit, it definitely is worth the time.

 

[PancakeBill]

Well, putting off joining the ranks of the no longer employed.  Can't quite swing retirement becausew of heathcare.  We can adjust the cost of living by changing style of living.  We are selling the house here and moving to FL.  Next, need a job, so Monday I flew down to see the folks and check out the job situation. 

Long story short, stopped at Lazydays to look at a 5th wheel, anded up applying an over the the next couple days being interviewed, and ultimately offered a job on their sales team.  I will start in September, and hope to be on the road in August, taking a little time off on the road before settling in to the new routine. 

See you for lunch!

 

[Smoky]

Wow Bill!  Grats on the new job at Lazy Days!  I bet that is a cool place to work.  Please keep us posted on what the job is like!

 

[PancakeBill]

OK, won't be reporting in till end of August.  Sure takes the pressure off the job search, but still sending resumes, and interviewing.  Getting unemplyment and have to do that to collect.  Cheap money, and good expoerieince interfacing with other folks.