Whenever I made a big change in life, to leave my work from divorce to the Los Angeles Times, I tried to explain my motives. I have, of course, they are a lot of reasons. Therein lies the problem. How do you sum up took years to climb complex decision tree?
I feel the need to tell people that I am “semi-retired” A year ago, in the same way the age of 56. Why? Although I love what my job is, there are always a few things that make me wonder whether to retire, or at least a significant proportion of the recovery work is possible.
A sick someone close to me, it made me realize how precious time yes. I also married a fun thing great man who always can think of, we do laugh ULD. Then there is the nagging thought, I have long held a few months time target traveling, writing a novel, become proficient in a foreign language, I never had time to finish. By this time last year, in my mind chorus chanting, if not now, when?
So I did what every future retirees do. I ask myself, if I have enough money to buy more time. When I realized that the answer is yes, I entered another familiar exercise for retirees: how to figure out, how I need to meet my expenses, and how best to generate income from my savings. Health insurance is not a problem. As a long-term freelancer, I’ve got a high-deductible plan.
I is not no income. I have been paid in several performances, so this column, I like it. But I scuttled everything, I think that out of about 60% of what I need income.
There are many other strategies to 60%. My simple. First of all, I looked at income, taxable bonds and dividend-paying stocks have produced part of my portfolio. Money is automatically reinvested, now inject money market accounts. But I still need to replace what I usually spend 40%. This allows two choices: take early distributions from a retirement account or by selling mining stocks further my taxable account
hHlp from the IRS. without the knowledge of many Americans, you do not always have to pay a 10% penalty, if your annualMining 59½ your retirement assets before tax of age. You just need to follow the tax laws fall some mysterious Rule 72 (t) in accordance with. These rules let you take “substantially equal” payments based on the life expectancy of your IRA, penalty free, as long as you continue to take these funds within five years or until you reach the age of 59½, whichever is later. You do not have to take all the money from your retirement account. If you have a few, like me, you can select only one annuitize it is based on, IRS rules. After you have passed five years or age -59½ test, you can change your withdrawal schedule.
The disadvantage is that IRS rules are complicated, and I do not want to lock themselves in their schedule. In addition, although you will not pay a 10% penalty, you will pay taxes at ordinary income tax rates of withdrawals. EV grace in reducing income levels, which are higher than the return on capital.
So, before me, I need the money is expected to select a strategic selling shares in my portfolio taxable about six months. This involves the analysis of my holdings to create a “sell” list, then the implementation of sales, I think the A shares have hit a recent high or limited potential. This method is not perfect. Some stocks let you expect them to rise back to stall. But if I were someone else suggested, I would tell that person does not give up the pursuit of a perfect might not reach up to the good, so I have this plan to adhere to, until I find a better strategy. At the same time, I was in the fourth revision of the novel.