So today I had a kinda eureka moment. My issue has been how to bridge the gap between now (age 46) and 55. One I hit 55 I have deferred comp from 55-70, and then I'll take social security at 70. Along the way I'd supplement it with savings/IRAs.
My eureka moment is taking the my pension lump sum from my old employer now and use that, in conjunction with an IRA SEPP and savings, to get to 55. The lump sum is worth $280k today, but if I start the payout it's only $1050 a month. The payout is dismal unless I wait to take it until full retirement (65).
So, I could delay the pension until say 70, and that with social security would give me a nice guaranteed income. I could then use my IRAs (paying 10% penalty) and draw that down to 70. It won't 100% gone, but it'll be significantly used up. Seems kinda risky in a way though I think. Drain IRAs early, and use guaranteed pension and SS after 70.
OR, I take my lump sum pension, use that and savings and a SEPP to get to 55, and that gives my IRAs plenty of time go grow more. IRAs and social security should be enough past 70.
Thoughts? As you can tell, I have many options on how/when to access money. I can now literally taste retirement if I go the take the pension lump sum today route. I do feel like IRAs and social security should be enough to give me a secure retirement after 70.