Taxes after retirement

by Deborah
(Fremont California)

Hi I am 56.5 have worked for a major California Healthcare Company for 34 years. 2 years ago they reduced our lump sum retirement option by 20%. Word on the "street" says that it will be reduced by 10% in 2014 and etc.......

If I retire now and take my lump sum approx $450.000 can I take 60% and buy an income property if so what are my income tax issues. In other words without setting it up to be dispersed in increments of $ 20,000 per year for 10 years and then 10,000 a year when I collect Social Security at 66.

I would like to possibly try and set it up to have 3 rental properties in the next 10 years so at 67 I will have more than $36,000 a year retirement income. The first rental property would of course be bought outright without a mortgage with the $245.000 Thank You.

Deborah
California Nurse

PS right now I am married and have income from my spouse, We own a home and have over $100.000 in a 401K that I do not plan on tapping into til at least 65 but understand I can draw from at age 59.5 if I desire. I hope that what I desire will be to take a nice vacation once a year since I have spent 36 years taking care of family and patients.


Wendy: You need a financial planner.. most will do a free consultation which often includes different scenarios for your own planning.

Your scenario is complex, you really need professional help. Pick several and schedule appointments.. its well worth a few meetings to see if they all point you in the same direction or completely different views. THEN you pick someone that matches your views and personality... if you choose on hire someone.

Bottom line: You've got lots going on, different financial avenues. A CFP (certified financial planner) can advise on investments, how much to withdraw annually, taxes, and more. Many charge a low fee as they get income from the investments too. On taxes, there are strategies that can save

You don't have to hire anyone -- get the and advice and go it alone if you must -- but you do lots of pots in the fire and might want a professional to guide you.

p.s. I've had employees leave due to benefit changes for years... it's wonderful that you are thinking this all out!!

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