Retirement funds
Hello Terry, I read you column on the Orlando Sentinel.
Should I start taking money from my retirement savings plan and I also have some stock options that Is small but enough to buy a car for cash. What to do.
I am 69 years old, I have an Trift savings plan. I’m retired Military of 30years service. I have not touched my retirement because I have enough income to live comfortably for my spouse and I. I will be turning 70 early next year.
Thank you
Terry Says
If you don’t need to take the money out now, don’t do it. BUT you should be aware of how the money inside your plan is invested. Did you read this recent column? https://www.terrysavage.com/know-what-you-own-3/
As you get older, you’ll want to move into more conservative investments.
And, I’m sure you’re aware that in a few years, you’ll have to start taking Required Minimum Distributions (RMDs) based on your age and the amount of money in the account. That will add to your ordinary income — so be sure to have taxes withheld (about 205) from any withdrawals.
That said, check into the terms of your stock options. They may have an expiration date. So you’d want to exercize them and probably sell the stock while they still have some value.
