Long time lurker from FW, rare contributor. Always learned so much. Hope someone here can help me with the math here.
I’m 60 1/2. Retiring in August. Fidelity says I can have 5% of our IRA easily to supplement my wife’s 84k salary. We have low expenses and will do fine. Minimal debt/ no mortgage. Small car loan I could dispatch immediately (4.4% APR 3 years) and towards 100k in cash.
My wife currently maxes out her 401k contribution. This nets about $3400 a month from her.
I want to about match that from the IRA withdrawals, so shy of 7k/ month and we will live well.
My question. Is it better to STOP her 401k contribution so she will have a higher net each month, and reduce the IRA withdrawal rate/amount, or keep it going and withdraw $3400 a month from the IRA?
Ill get 2k of SSI in a year and a half. She plans to work 4 more years and retire as well.
IRA is in Fidelity managed accounts. It did great last year, a little more than flat this year.
Hope this is enough information. My gut says to leave the 401k contributions alone and w/d enough from the IRA.
Maybe this is intuitive to some of you, but finance is not my world