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53 yrs young on track we think ..
Old 11-04-2015, 08:29 AM   #1
Confused about dryer sheets
 
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53 yrs young on track we think ..

So I've been around reading this board forever . I work in banking so you think I would know a thing or two . But when it's your finances you can know so much your paralyzed to make the right move .. We recently married after 10 yrs together . we sold my home and downsized to a condo financing 168,000 we have his house that we rent. I want to keep as rental as we only owe 50,000 but he does not want to rent anymore . He wants to unload . The location is declining but so is value and the school district is bad . So I'm thinking he's right .. Unload . Considering putting funds in our Franklin investment .. It's not a huge amount of dividends but enough to maybe keep as rainy day account until we decide to retire at 62 . He can go at 55 with pension , but benefits cut off after three years now. Plus they increased pension contribution so we think stay until 62 his calculation is 3000 per month before taxes . My 401 is not much, 150,000 although my advisor is always amazed how much I have since I started late . We really want to go sooner .cars paid off no debt except mortgage . I have two parent plus loans but my kids are paying them . Guess I'm just looking Forward to second chapter career TBD but the health care with his job is a Cadillac of plans so we figure hang in longer. We just met with our advisor to review everything for fire in 9 years!!


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Old 11-04-2015, 08:48 AM   #2
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Originally Posted by darmstrong View Post
So I've been around reading this board forever.
Then you'll see this one coming.

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Originally Posted by darmstrong View Post
Considering putting funds in our Franklin investment ..
Funds with high expenses and poor performance...

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Originally Posted by darmstrong View Post
We just met with our advisor to review everything for fire in 9 years!!
...recommended by your advisor?

Dump the advisor, do a bit of reading on DIY investing and move your funds to Vanguard or Fidelity. You'll be far better off.
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Old 11-04-2015, 08:54 AM   #3
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Expenses?

The student loans kinda scare me. If they're under your name, then you're liable to pay for them. How much are the loans and can your kids consolidate/refinance so the loans are under their names and not yours?
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Old 11-04-2015, 09:34 AM   #4
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Another common theme you should have read many times before is to have a good understanding of your expenses, and then you have to evaluate if your savings and other income streams will be able to meet those expenses.

Without knowing your expenses, it is impossible to make any type of educated analysis. It does sound like you are on the right path to reduce debt, and looking at expenses in retirement.
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Old 11-05-2015, 05:04 AM   #5
Confused about dryer sheets
 
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Thanks everyone, very helpful . there are only two student loans and under 20,000 and my 401 is with fidelity and well diversified. Love this board.


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Old 11-05-2015, 05:23 AM   #6
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Have you fired up Firecalc?

I like the idea of selling the rental if it is in a declining area.
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Old 11-05-2015, 07:13 AM   #7
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Now that we know the student loan amounts, what's the equity on the rental home? I was a landlord, if the next tenants decide to not pay ,what are you going to do.? Have you even been to tenant court? In my state the landlord is guilty before the first word is said. It took me 11 months to evict , cost me about 9,000 for the lawyer, then 25, 000 in repairs. I sold it . I live in NYC so I always assume the worst. I'd be thinking that you will pay the student loans( you did list them so it must be a concern). I also assume the rental will be worth less since the neighborhood is on the decline, I assume your next tenant will become a deadbeat. I am invested in vanguard with my taxable accounts. Find an assest allocation that is comfortable for you. Implement it. You need to do on paper a budget see what you spend see how much your going to bring in with pension and investments. You need to factor in Murphy's law I.E. Home repairs in my opinion 1% of home value, major dental work ,an implant is about 3500 EACH( I didn't work like an animal so I could put my teeth in a glass at night. New car or at least a fund for a car replacement. I factor in 1000 a year for auto repairs I go years with out spending that but when it happens I have it available. The list goes on Any questions respond back
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Old 11-05-2015, 07:54 AM   #8
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Welcome to the forum.

I have to agree with REWahoo.... Alarm bells went off with both the mention of Franklin Funds and with the advisor.

Like many here, I used to be intimidated by the idea of managing my own money... but it's actually MUCH easier than I thought it would be. Select an equity/fixed income ratio (eg 60% stocks/40% fixed) - get some low expense ratio INDEX mutual funds (fideltiy, vanguard, schwab all offer them.) Purchase to match your expense ratio.

Once a year you rebalance back to your ratio. Takes less than 15 minutes a year!!!!

Or - if it's just too intimidating to do that - instead of a Franklin Fund consider Vanguard Wellesley or Wellington... They are actively managed, but a lot lower expenses than anything Franklin Funds offers.

You *can* do it, and you'll get to keep the money that would have been going to your advisor and to the Franklin Fund managers.
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Old 11-05-2015, 05:34 PM   #9
Confused about dryer sheets
 
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I have not done the fire calculator but plan to. I should mention I work for a credit union and my advisor does as well, he does not charge me . I also have a fidelity plan that is flexible I rebalance every year religiously and auto contribute 1 percent a year. I contribute 10 percent of earnings a year to the fidelity Roth .. Company match up to 6 percent . My daughter pays me monthly for my parent plus loan .. She's gainfully employed .


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