First of all, I'm not in a very good position financially, but I can not return to work due to being the caretaker for a family member that has cancer. Here's my situation:
I just turned 62 and will be signing up for soc. security - $1450/mo.
I have about $10,000 left in savings.
I have a 401K worth $255,000.
My home has a $200K mortgage with about $400K in equity.
That's it. I didn't start saving for retirement until in my 40s, due to ignorance, divorce, and financial limitations. My bad.
I owe $30K to my equity line of credit.
My monthly expenses are about $3,000/month.
I talked with my bank (Wells Fargo), and they recommended an annuity with a Franklin Templeton component. [Hartford's Principal First and Franklin Templeton Founding Funds (Franklin Income Fund, Templeton Growth Fund, and Mutual Shares Fund).
The distribution would be 7% for a little over 14 years, of course the growth component would potentially extend that. That would come close to meeting my monthly expenses.
I am not very experienced with stocks and investment strategies, and I do understand the opinions regarding annuities. I don't have expensive hobbies, and expect to sale my house eventually and move to a more affordable area, although I would prefer to stay where I am as long as I can.
There is a possibility I can generate income by working at home or part-time (I do Web development), but I can't count on that. For someone in my situation, what advice would you recommend?
Any advice will be greatly appreciated.
I just turned 62 and will be signing up for soc. security - $1450/mo.
I have about $10,000 left in savings.
I have a 401K worth $255,000.
My home has a $200K mortgage with about $400K in equity.
That's it. I didn't start saving for retirement until in my 40s, due to ignorance, divorce, and financial limitations. My bad.
I owe $30K to my equity line of credit.
My monthly expenses are about $3,000/month.
I talked with my bank (Wells Fargo), and they recommended an annuity with a Franklin Templeton component. [Hartford's Principal First and Franklin Templeton Founding Funds (Franklin Income Fund, Templeton Growth Fund, and Mutual Shares Fund).
The distribution would be 7% for a little over 14 years, of course the growth component would potentially extend that. That would come close to meeting my monthly expenses.
I am not very experienced with stocks and investment strategies, and I do understand the opinions regarding annuities. I don't have expensive hobbies, and expect to sale my house eventually and move to a more affordable area, although I would prefer to stay where I am as long as I can.
There is a possibility I can generate income by working at home or part-time (I do Web development), but I can't count on that. For someone in my situation, what advice would you recommend?
Any advice will be greatly appreciated.