WWDog
Recycles dryer sheets
I'm a 60 year old (just a couple of days ago). I have been retired for about 10 years. Both the wife and I are retired military. We both had second careers. Her teaching and me as a subject expert for a FFRDC.
We are more than comfortable with our military retirement having a house that is fully paid for and savings from our second careers. I converted my 403B to a roll over IRA upon retirement and gradually moved it over to a Roth IRA calculating the value to convert each year based on what would take me up to the next tax bracket. That conversion is completed. I took that money off the market a couple of years ago. Philosophy is that I have already paid the taxes on it and I don't trust the economy at the present time.
The other funds were in CDs that yielded good profits from the ladder I set up several years ago. However CDs over the last few years are not offering good rates. So I have just moved these funds to savings accounts. Both the Roth IRA and the savings are not even keeping up with inflation, but they are safe as I have stayed below the insured limit at each institution. Presently we are putting money into savings in retirement (I know, unheard of). The money would be used for either spouse should the other die to supplement income if needed. What is not used along with insurance money will be taken into a trust upon the death of one spouse with the exception of the Roth IRA.
I keep an extensive spread sheet of past, present and future values taking into account potential movement of assets, death of a spouse, expenditures in categories, inflation on those expenses, and tax situations. Even with the poor economy, potential tax changes, and changes in our life, I feel we will be comfortable. What I can't predict is what inflation will do in the future and what is the most advantageous investment route is to insure our financial situation continues to improve. Right now my philosophy is to just wait it out as future risk is unknown at best and most likely risky.
Any thoughts?
We are more than comfortable with our military retirement having a house that is fully paid for and savings from our second careers. I converted my 403B to a roll over IRA upon retirement and gradually moved it over to a Roth IRA calculating the value to convert each year based on what would take me up to the next tax bracket. That conversion is completed. I took that money off the market a couple of years ago. Philosophy is that I have already paid the taxes on it and I don't trust the economy at the present time.
The other funds were in CDs that yielded good profits from the ladder I set up several years ago. However CDs over the last few years are not offering good rates. So I have just moved these funds to savings accounts. Both the Roth IRA and the savings are not even keeping up with inflation, but they are safe as I have stayed below the insured limit at each institution. Presently we are putting money into savings in retirement (I know, unheard of). The money would be used for either spouse should the other die to supplement income if needed. What is not used along with insurance money will be taken into a trust upon the death of one spouse with the exception of the Roth IRA.
I keep an extensive spread sheet of past, present and future values taking into account potential movement of assets, death of a spouse, expenditures in categories, inflation on those expenses, and tax situations. Even with the poor economy, potential tax changes, and changes in our life, I feel we will be comfortable. What I can't predict is what inflation will do in the future and what is the most advantageous investment route is to insure our financial situation continues to improve. Right now my philosophy is to just wait it out as future risk is unknown at best and most likely risky.
Any thoughts?