Forum Support Old55 Posted March 13, 2012 Forum Support Posted March 13, 2012 (edited) I did a very quick Google search and found a payout tool that provided with a monthly payment of $2,743.59. This if you are starting with $300,000.00 at a interest rate of 2.5 % with an inflation rate of 3.5 % a year. You could likely find a fixed rate bond perhaps tax free to provide that or better.http://www.hughchou.org/calc/rdur.cgi Edited March 13, 2012 by Old55 1 Link to comment Share on other sites More sharing options...
Dzighnman Posted March 13, 2012 Posted March 13, 2012 (and I understand the early withdrawal penalty would be huge because I am only 50). Often times, the withdrawal penalty is waived in times of extreme hardship... usually, loss of employment constitutes extreme hardship... if you are set in that direction at least explore if there is in fact a large penalty associated with your plan. Good luck in whatever direction you choose, many of us have been through this in recent years. :) Link to comment Share on other sites More sharing options...
bows00 Posted March 13, 2012 Author Posted March 13, 2012 Yeah, I am really stressing out atm - can't eat - can't sleep - but the light at the end of the tunnel doesn't look that bad. When I concentrate on the positives, I have a feeling my old job will be just a faded memory once I settle there.If the worst should happen, my first move will be to take a 2 month vacation, checking out various districts to determine where I want to eventually settle. And there is so much information on this website to help me decide where to visit to live on $1200/month. I am so fortunate to have heard so many rags to happiness stories on this website. That is what I currently need to keep me motivated to find a peaceful resolution to my situation.Thank you all for the wonderful support in my time of need. I am so glad I found this forum. 4 Link to comment Share on other sites More sharing options...
cebu rocks Posted March 13, 2012 Posted March 13, 2012 Budget for a 6 month holiday try to get a place asap and live the expat lifestyle . Imo 2 months is to short to see if you can handle the RP . After being here the first time for 2 months I thought no way could i live here but after 4 months the idea was getting firmly set in my mind upon leaving after 6 months i could not wait to return . The Phils is not for everyone there are a lot of things to adjust to . As bilten says once you have all the things you need your liveing becomes much cheaper but don,t buy a house until you have found what suits you and your lifestyle . 1 Link to comment Share on other sites More sharing options...
Jack Peterson Posted March 13, 2012 Posted March 13, 2012 I found out today that there will be good chance I will be losing my job after 25 years of service in a US Federal Government position. I will not bore you with the details,At 50 years of age, what are my chances of making it without running out of money? And yes, I will have to tone down big time on the partying.Any suggestions?At this Stage No Suggestions BUT a Question. You say Nothing on Severance or Redundancy! After 25 years of No Doubt Loyal service, Surely there is a Wedge to be Collected ?.OK! a suggestion, If the wedge is Good for a year or More, Visit. Rent the Condo out, get a return of at least the Mortgage.At least then, you can make that decision!Jack P. :) 2 Link to comment Share on other sites More sharing options...
OnMyWay Posted March 13, 2012 Posted March 13, 2012 Yeah, I am really stressing out atm - can't eat - can't sleep - but the light at the end of the tunnel doesn't look that bad. When I concentrate on the positives, I have a feeling my old job will be just a faded memory once I settle there.If the worst should happen, my first move will be to take a 2 month vacation, checking out various districts to determine where I want to eventually settle. And there is so much information on this website to help me decide where to visit to live on $1200/month.I am so fortunate to have heard so many rags to happiness stories on this website. That is what I currently need to keep me motivated to find a peaceful resolution to my situation.Thank you all for the wonderful support in my time of need. I am so glad I found this forum.Stressing out? You should be happy! You are in great shape and should be looking forward to your enviable ability to retire in PI at 50, if you so desire. You have plenty of money and I wish my 401k was as healthy as yours.I may be out of work next week at 55 (a planned exit) and I am looking forward to it, despite the difficulties of renting / selling my house and moving to PI. I will have a little over 100k cash to last me until I can take money out of my 401k without penalty at age 59 1/2, plus whatever I can get in a severance package.Whatever you decide, do not put yourself in the situation where you take an early withdrawal from the 401k and pay the 10% early withdrawal penalty. You might want to consider:-- A 401k loan for the 100 k to pay off the condo, if you really want to keep it and have it paid off.-- Don't pay it off, rent it (for more than the mortgage payment?) and have the tenants pay off your mortgage over 5 years. If you need more cash to get by til 59 1/2, you can: A. take a second mortgage on the condo and hopefully your rent payment can also cover the payment on the second. B. A 401k loan to use for living expenses in PI-- I would sell the condo, and invest the 300 k. As some said, you should be able to get around 8%, and that is $2000 a month income. That will more than keep you afloat in PI until you can withdraw from your 401K at 59 1/2. Link to comment Share on other sites More sharing options...
MikeB Posted March 13, 2012 Posted March 13, 2012 You have substantial assets to protect, a bad decision will adversely affect the rest of your life. Talk to a financial adviser on an hourly or flat fee basis. They will tell you not to touch the 401k unless there is a dire emergency and this ain't it. You will be paying a 10 THOUSAND DOLLAR PENALTY to get the 100k - plus taxes on it. Sell your blood before touching it. There are too many variables and tax consequences, you need professional advice, imo. 1 Link to comment Share on other sites More sharing options...
Jim Sibbick Posted March 13, 2012 Posted March 13, 2012 why? Where will I get the income?Interest!If I could clear $300k I would sell.Regards: Jim 2 Link to comment Share on other sites More sharing options...
Mike Crum Posted March 14, 2012 Posted March 14, 2012 Don't touch the 401k. In addition to the penalties your loan will you into a much higher tax bracket for the year. Your 100000 will coast more like 10,000 in penalties and assuming your in the 15% tax bracket like me at 50000 a year would likely cost you another 15000 when you jump to the next marginal bracket. Live on a budget of 360000 /10 years @ 36000 a year. 401k will be over 1,000000 by then. Link to comment Share on other sites More sharing options...
Popular Post Jollygoodfellow Posted March 14, 2012 Popular Post Posted March 14, 2012 Lots of good advice here and some different opinions. I am not going to give you financial advice but will say that if you do loose your job you should be the happiest man in town. For a start you get a little push to do something new, explore a new way of life, you get to do that while still young where many do not have that Opportunity.Let me be the first to congratulate you on loosing your job (if that works out) and to congratulate you on the start of a new life. Wish I was in your shoes. :lol: :999: 6 Link to comment Share on other sites More sharing options...
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