Rete

Why 2 years down the line?

I'm not a fatalist as some are. He is over the age of 57 1/2 and can take from his retirement account to help with expenses for the next two years, without penalties, if it takes that long for the Mrs. to be approved.

Finding a job is a bit more difficult but if you are willing to take employment, even if it is not at the same rate you were paid before but has benefits, then that helps with the here and now.

If you don't have healthcare, go to a public hospital. They will work with you to reduce your bill and setup a monthly payment plan. And, please, do not tell me I don't know what I'm talking about. I have first hand knowledge of going through cancer treatment without healthcare. I've seen an invoice for over $89,000 reduced to $19,875 and many of the drugs were given for free. If you wait for it to go to collection, you can settle for 25 to 30 cents on the dollar for a total of $6,000.

Rete

I can't judge by our healthcare before age 65 as husband gets his from the State of New York's teachers union CSEA. Even without telling them we are traveling they pay all medical and hospital bills before medicare and now their supplemental plus does the same.

caretaker

I saw places between St. Petersburg and the De Soto Pier that looked good for surf fishing if you could get a spot for the trailer.

Giantaxe

Not without penalties - the age to avoid penalties for an IRA withdrawal is 59 1/2. There is an exception if the account holder is permanently disabled, but given SS takes two years to work that out, I doubt the exception would apply. You can withdraw Roth IRA contributions without penalty because tax has already been paid on them.

Rete

Ooops ... right 59-1/2

Hotscot

'Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss. For more information, see Hardships, Early Withdrawals and Loans.'

johnwoo

No two situations are the same, but take some encouragement. The company I worked for moved from California to York Pennsylvania when I was 60 and I managed to find a job to see me out until I retired at 65. I've changed jobs five times, six if you count two years in the RAF. Three weeks is longest I've been out of work in fifty years. I've been fortunate to have had a network of friends and fellow Brits. Good luck hope, it all works out for you

chawkins99

If you have lost your job, the age limit to avoid the 10% penalty is 55. However, that will be a last resort.

Giantaxe

That applies only to 401(k)s and not IRAs. Of course, if you have significant savings in the former, it's a possible way to go.

johnwoo

Certainly should be a last resort. My 401k and the fact I own my house keep me from financial hardship. Living on pensions alone would be a financial strain.

jmin

If you're under 55, you can receive substantially equal periodic payments under the IRS 72(t) rule to also avoid the 10% penalty, although you will have to continue taking distributions until you reach 59.5. Most people are unaware of this.

A tax period in which you have no income can be a good time to do roth conversions, if you have other assets to live on in the meantime. This will let you convert your pre-tax retirement funds into post tax funds at a low marginal tax rate. This makes sense if you will be in a higher tax bracket in retirement (pension).

carcajou

Concur with the others that the best bet is probably staying put, and renting out the house. As you would be well aware, Pensacola is a popular retirement spot (for obvious reasons) and if your house is paid off, I think you should do everything possible to not close off the option of retiring there.

Medicaid may also be an option for you if your income drops below a certain level, as you are diabetic.

chawkins99

Figured I would update this thread one year on...

The plant closed at the end of September, although I was retained until the end of October to finalize the transition.

I had a job lined up in healthcare on the east coast of Florida, near Kennedy Space Center, to start mid-November. Before I started that, I was offered a job at my previous employer's sister company in Panama City, FL which I accepted as it was a LOT closer to our daughter and family in Montgomery. Pretty much the same salary and benefits as my previous job. So, we are now living in our RV in Panama City, saving like crazy for retirement.

Now, another thought that hit me in view of the whole COVID situation is, if the previous company had not sold out, I would probably be unemployed now as they would NOT be considered essential and chances of finding another job now is much slimmer than a year ago.

My new company is in the service business and classed as essential, so I should be safe. At least for now.

Pulaski

Thank you for the update.

Congratulations on making a relatively easy transition from your previous employer to your new role, and especially on finding yourself in a role that appears to be "essential" in the current global situation.

SanDiegogirl

Very pleased to hear you landed on your feet.

Congrats..... all the best