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Old 06-22-2016, 07:15 AM   #21
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Originally Posted by Sunset View Post
OP - Do you consider yourself knowledgeable about finances ?
From what you ask, I think you should spend lots of time at the library borrowing books on how to invest, and NOT do anything with the FA until then.
I say this probably not to be "mean" but a couple of things stand out in your questions:
- "as well as keeping my annuity with them" -> Please explain did you buy an annuity from them or are you paying into what will be an annuity, or was the FA wanting to sell you an annuity.

- "wondering if I should look at tax deferred mutual funds for the $175,000 in savings. " -> This suggests to me you have not been saving for retirement and don't have one of (Roth, IRA, 401K) , Please let us know if you have these or one of them.
It also suggests to me you don't know how tax deferred funds are used, and the limits per year to investing in them.
Very good, but I disagree with one part - the OP should not need to "spend lots of time at the library borrowing books on how to invest".

Answering a few of the questions that members here have asked, and reviewing those numbers with a FIRECalc run should take minutes, and a few extra minutes for the explanations. Based on that a reasonable AA can be determined, a few index funds and that part is set.


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Old 06-22-2016, 07:19 AM   #22
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OP come on back a give some more info, as to your original question, Yes of course it's possible to "just run out of money" to meet your monthly expenses.

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Old 06-22-2016, 07:42 AM   #23
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what kind of stochastic model does your FA use? mine has a pretty robust model
Swing hard, look up
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Old 06-22-2016, 09:48 AM   #24
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Originally Posted by Symplelife View Post
I would have the annuity paying about $2400 per month @ 65. SS = $1500. Expenses would be mortgage and utilities $1600 per month, food $600 per month. Health insurance is an unknown - currently about $500. Savings would be around $175,000.
You have left out several expenses for a typical budget.

* Property taxes
* Home insurance
* Transportation (insurance, maintenance, gas, registration)
* Medical/Dental
* Home Maintenance
* Entertainment, recreation and travel
* Gifts
* Clothes
* Replacement (cars, appliances, furniture, tv, computer, roof, etc.)
* Special events such as a child's wedding
* Buying stuff (are you planning to never buy a non necessity?)
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Old 06-22-2016, 10:00 AM   #25
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OP, don't be in a hurry to turn over your money to your FA. It will almost certainly set you back on commissions and fees, which sounds like just the opposite of what you need right now. Don't be in a hurry to dismiss what he says, or to dismiss him. He may be right about the most important point:running out of money, or being strapped in your 70s. Face it, if you "run out of money" at 85, your late 70s and early 80s are going to be no picnic.

Do you have access to a detailed analysis of your lifestyle expenses for the past few years, and some idea of how they will be impacted by your retirement plans?

Use FireCalc, or some calculator(s) to make your own assessment

and of course, this link:Some Important Questions to Answer Before Asking - Can I Retire?

lots of very smart people here to help you figure this out.
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Old 06-22-2016, 01:02 PM   #26
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Advisors and annuities cost you a sizeable portion of your investments every year. If you avoid them you have much of your WR for income right there.
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Old 06-22-2016, 03:51 PM   #27
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Originally Posted by DrRoy View Post
Advisors and annuities cost you a sizeable portion of your investments every year. If you avoid them you have much of your WR for income right there.
So true, and they often want to get you into really expensive mutual funds.
Personally I have a small mutual fund investment called Dividend Growth Fund,
Here is the horrible part about it, the annual expense of the fund is 2% and the dividend they pay me is 1% per year.

They should have named it Expense Growth fund

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