Welcome to the forum!
Will the $8-$9k/month in pension/SS start when you retire this fall? Does the pension receive annual cost-of-living adjustments?
Is that income sufficient to pay all retirement expenses - living, travel, healthcare, income taxes and the occasional large expenses such as a new car?
Or do you need the extra $2k/month of investment income to cover basic expenses? An annual withdrawal of $24k from $450k is 5.3% which is on the high side. Could you live on a lower withdrawal % of 4% or less? A lower withdrawal rate will help preserve your portfolio for future expenses like rent which may increase more annually than your pension/SS income does. Or for possible future long-term care.
You could have a very simple set up with a Taxable account or CMA at Fidelity or Schwab (do either have a local office?). Then link the account to your bank account for fast easy transfers.
You need to decide on an asset allocation. Perhaps 50% equity and 50% fixed income will work.
Consider selling the equities you inherited and reinvest in a total stock market fund - U.S. and perhaps international. More diversification is better given your risk tolerance and that you will be drawing on this portfolio.
It’s good that you have Wills. Do you and spouse also each have durable POAs and healthcare rep/advance directives? They are critical documents to have.
Will the $8-$9k/month in pension/SS start when you retire this fall? Does the pension receive annual cost-of-living adjustments?
Is that income sufficient to pay all retirement expenses - living, travel, healthcare, income taxes and the occasional large expenses such as a new car?
Or do you need the extra $2k/month of investment income to cover basic expenses? An annual withdrawal of $24k from $450k is 5.3% which is on the high side. Could you live on a lower withdrawal % of 4% or less? A lower withdrawal rate will help preserve your portfolio for future expenses like rent which may increase more annually than your pension/SS income does. Or for possible future long-term care.
You could have a very simple set up with a Taxable account or CMA at Fidelity or Schwab (do either have a local office?). Then link the account to your bank account for fast easy transfers.
You need to decide on an asset allocation. Perhaps 50% equity and 50% fixed income will work.
Consider selling the equities you inherited and reinvest in a total stock market fund - U.S. and perhaps international. More diversification is better given your risk tolerance and that you will be drawing on this portfolio.
It’s good that you have Wills. Do you and spouse also each have durable POAs and healthcare rep/advance directives? They are critical documents to have.
Statistics: Posted by HomeStretch — Mon Jul 29, 2024 12:56 pm — Replies 10 — Views 1278
