Some clarifications might help.
Will there be a defined benefit pension from the state? This seems the most typical circumstance for not receiving Social Security.
What state? (for tax purposes and state-specific strategies)
What type of account is the Traditional in (403b, 457b, other)?
Does your $5000 per month expenses take into account income taxes? Do you expect your expenses to change in retirement?
The first question is whether you will want or need annuity payments?
If you really will be at 50x ($3M/$60k) expenses in retirement, you likely won't require it.
I would probably wait on the annuity decision until you are closer to the actual retirement date and have a firmer picture of what the actual situation is with respect to account balances. Also, the payout rates may well change by the time you actually want to start the annuity.
And remember that you don't typically have to start withdrawals immediately upon retirement. Depending on how you plan to pay for your spending, and your desired asset mix, you can likely leave the Traditional alone even after retirement. You will be able to access it (in proportion to other assets) via RMDs, or can start your payout later.
Will there be a defined benefit pension from the state? This seems the most typical circumstance for not receiving Social Security.
What state? (for tax purposes and state-specific strategies)
What type of account is the Traditional in (403b, 457b, other)?
Does your $5000 per month expenses take into account income taxes? Do you expect your expenses to change in retirement?
The first question is whether you will want or need annuity payments?
If you really will be at 50x ($3M/$60k) expenses in retirement, you likely won't require it.
I would probably wait on the annuity decision until you are closer to the actual retirement date and have a firmer picture of what the actual situation is with respect to account balances. Also, the payout rates may well change by the time you actually want to start the annuity.
And remember that you don't typically have to start withdrawals immediately upon retirement. Depending on how you plan to pay for your spending, and your desired asset mix, you can likely leave the Traditional alone even after retirement. You will be able to access it (in proportion to other assets) via RMDs, or can start your payout later.
Statistics: Posted by epoche — Tue Dec 17, 2024 9:37 am — Replies 2 — Views 70