Retirement/social security
Hello, my husband wants to retirement at 66 and 6 months. He is 65 as of 4/11. I am not planning on retiring until I am 63. I am 60 now. When he retires, I will have to pick up health insurance for myself and two daughters, age 23 and 25. I will lose a significant amount of money from my job per pay period when I pick up the health insurance. My husband has a 401K (approx 140.000) and would like to start drawing social security. We will need the income. Which should we draw from first?? Will his social security affect our taxes? Will we pay more taxes ? I make ( approx 140.000) yearly. Should we roll over his 401K into an IRA? I have a Roth IRA now. Yes, we are still assisting our children as they finish college/grad school/ Thank you!!!
Terry Says
Whew — this is complicated and you need some individualized attention IN ADVANCE of his retirement. He definitely should not plan to take SS before his FULL RETIREMENT AGE. That would be horrible mistake number 1.
And since your children can stay on their parents’ insurance, this is going to be very costly to your family if you insist on keeping them on your policy. In fact, if they aren’t working full time, or earning very much, they should transition to “obamacare” at Healthcare.gov. Again, delaying his retirement for another two years will be VERY helpful.
And for the rest of your specifics, I highly recommend a meeting with a fee-only FIDUCIARY financial planner who can discuss the tax implications of this retirement decision, as well as the investment situation. If your husband could delay taking his SS (but not Medicare) until age 70, using other money first, you would all be in a much better position becausae of the higher base check he would get from SS at 70.
Find that planner you can trust by reading this: https://www.terrysavage.com/pam-krueger-wealthramp/
