Social security and 401k
Hi Ms. Savage, I am 62, married, with one adult child in grad school. I have a mortgage of 240k, I have $1.2 million in savings. I work p/t with f/t benefits and my salary is over $100k/annually. I want to retire but am waiting (hoping) my 401k will reach $1.4mil. before I do. I would like to know, since I am still employed, should I draw my social security now (which I know is a fraction of what it will be if I wait) to pay down/off my mortgage? And should/can I roll my 401k into a Roth IRA to secure its value? And, if so, will I incur taxes in doing so? Thank you in advance for your advisement.
Terry Says
Oh,no, no no — to answer most of your questions.
1. DO NOT take SS early. It will permanently reduce your benefits. AND your SS benefit will be reduced because you are working.
2. Good luck with that 40lk reaching 1.4 million — there are no guarantees, and a bear market could take that down substantially.
3. Paying down your mortgage is a decision that depends on your mortgage rate. If you have a rate below 5%, don’t pay it off.
BUT the most important thing revealed by your lengthy question is the fact that you have a lot of misinformation, and are ripe to be “taken” by an unscrupulous advisor. PLEASE set up a meeting with a Certified Financial Planner you can trust.
The ONLY way I can be sure you will be connected to a trusted, fee-only advisor is to go through the Wealthramp process. Please read this: https://www.terrysavage.com/pam-krueger-wealthramp/