If you want to either pay off debts quickly or start
saving for early retirement, you should learn to boss around your finances and build a strong budget.
Will I be able to file
for early retirement benefits on the smaller payout, then change to the larger at full retirement age using the divorced spousal filing for one of the times?
As a result, calculating how much money you will
need for early retirement is essential before you make the decision to leave your job early.
As a rough way to
adjust for early retirement, add your annual spending requirement for every year you retire early on top of the amount you would need for retiring at age 65.
Whatever the reason, and whatever your retirement age, it's important to get back on track, particularly if you
long for early retirement.
That's because under the new rules, your employer must now calculate your pension payout as if you had continued to work there until you
qualified for early retirement.
The ability to borrow tax - free against the cash value could be helpful if you want to
save for an early retirement or to pay college bills.
Clearly, the accumulation of pension wealth is not smooth and steady, but rises with fits and starts after age 50, due to rules of
eligibility for early retirement and the like.
If your
budget for early retirement includes working part - time and getting Social Security benefits, you could take an unexpected financial hit.
Another strategy you can use to minimize paying penalty taxes if you need to access your
401k for early retirement is to roll your account balance into an IRA.