With Retirement getting closer, I look at the world differently

BROCKWOOD said:
I'm 55. What I want to do is cash out my 401K to pay off everything, build & outfit my shop. Then get right back into a 401K for 50% of my income. Need to get all the numbers together & find a CPA as I really don't want to pay the taxman. I can handle 10 years of stacking up money.
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If you cash out your 401K you will most likely pay a higher tax rate than what you avoided when you put the money away. If your plan will let you borrow against your balance that might be a better way to go. I'm married so every dollar I pull out that puts my income over 77.400 (after deductions) will give the tax man an extra 10%, so I watch that pretty carefully. If you are single and you pull out a lump sum you would be paying 24% on anything over 82,500....
 
I appreciate the comments and wisdom from all of you.
I am not a very sociable person. Having this opportunity to talk to other like minded people helps.
I m really glad I found this forum.
I spoke to my financial guy last week. I told him about my plan of buying new machines when I retire. By new machines, I am referring to a lathe and a knee mill. I’ll sell the old machines.
We decided the account I have at work separate from other investments, 401K etc. will be my mad money account.
I am confident at 65, that account will produce Enough to buy the PM 1440 GT and one of the Taiwan knee mills.
I’ll need a rotary head also with lots of tooling. It should cover the expense.
I am very fortunate, planning and investing for 30 years helps.
I do need to keep my wife of 34 years happy, she provides a good hunk of our retirement planning funds.
 
I was fortunate enough to retire 12 years ago at 59. I have seriously enjoyed every moment of it. I spend a lot of time in my shop and we do a big vacation each year. My financial situation is pretty good, but both my wife and I have hobbies that bring in some income, so we have some mad money. She is an artist and I restore old American Iron. So we both have something to do whenever we want, but aren't slaves to or advocations. Too many of my friends hate being retired because they have nothing to do but read and watch TV. Don't fall into that trap. Keep busy with things you enjoy and retirement will be the best time of your life. Oh, and be sure to get plenty of exercise. It will keep you feeling better.

Randy
 
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I have way too many interest to truly be retired.

I wish that the education system would actually teach about real life after school, but they don’t.

For all the younger members that are working, start saving for your retirement right away. If you start in your 20s to early 30s, it makes a huge difference on your situation come retirement. Lot easier than trying to catch up in your 50s! Don’t depend on a pension that the company can make disappear at will. I never had a job that had a pension, so had to make my own using a RSP which is similar to an IRA in the states. Just take $100 every month and put it away, 30-40 years later you have a nice little amount to help boost your monthly funds.

Last 2 years, I have been fortunate that with working only a half day on Friday vs 9 hours Monday to Thursday, that I can take the half day vacation very week since Labor Day to the end of the year and enjoy a long weekend until the new year. Gives me a taste of what is ahead shortly.
 
Pdentrem, has great points. Listen to your elders!
My wife is a retired teacher, when she was around 35 we started a 403 B putting only $200 a month in the account.
When it reached $20,000 we stopped contributing money to that account so I could concentrate on my Roth and 401k.
That fund is over $150,000 today. With enough time, compounded interest really works well for you.
 
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