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As I posted earlier, I plan to retire this summer with my wife working full time one more year. I plan to roll my 401k into a IRA and she will receive a pension. She teaches a 3hour class at the local college and will continue to do this as she enjoys it.
I currently have the following American Funds in my 401K. About 250K.
Investment Co. of America 40%
New Perspective 30%
New Economy 15%
Smallcap World fund 15%
In my taxable account I have 100K with 70% stock and 30% bonds/ fixed. I should have another 35K or so by summer.
Our home is paid for and we have no debt. We could also downsize our home and probably put 100K in our pocket.
With the pension and part time work we should be fine. I'll be 50 this year and she is 46. I am currently with TD Ameritrade and I have a small IRA there and my thinking is to roll the 401k into that.
We shouldn't need the 401K/IRA money for 10yrs or more and thats only when the wife deceids she dosn't want to put in the 3hrs a week for two semesters per year. She makes $5000 per year.
Ive went over our budget and we need $26,000 to pay our bills. This would be our bare bones budget though. $58,000 is more in line with what we are spending now. Her pension will be $54,000 and does have a cola and survivor benefits. I'm assuming 15% taxes.
I should have around 385K to invest. $250k tax defered and $135K after tax. Im thinking of keeping around 35K in bonds/fixed in the after tax account but not sure how much I should put in the IRA. I can just keep the American Funds, but Im thinking of just buying a mix of ETF.
Any idea's. Should I even consider buying more bonds?
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