Retiree expenses
I am retired and have both, a pension and a 401K.
I retired at the beginning of this year at 58. I left $200,000 in my 401K so I can access it without penalty and rolled the rest into an IRA.
We are looking to do some home improvements (Siding, Windows, Driveway, etc.).
What is the best move? Will pulling from the 401K throw me into another tax bracket?
Would it be better to take out a loan?
Terry Says
Retiring at age 58 and then needing money for home repairs doesn’t sound like a good financial plan for starters! If you had asked before you retired, I would have suggested that you continue working and fund the repairs out of current income.
I hope you can now meet with a financial planner who will point you in the right direction. If you’re retired, you likely can’t get a loan, maybe not even a home equity loan, since you don’t have current income. Raiding your retirement plan will trigger a 10% penalty for withdrawals before age 59-1/2.
You don’t seem to have any good choices since you already made the bad choice of retiring too soon! Consider a meeting with a fee-only fiduciary financial advisor: Pam Krueger Wealthramp – Terry Savage
