Hi Everyone, Hope You Are All Doing Well - Help please - Your opinion?

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rjohnla

Recycles dryer sheets
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Apr 11, 2013
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I'll be 57 at end of this year and have about $1.3M (Cash or cash equivalent) $260k - 30 yr. USG Bonds in Pension (portable); $250k 401k (most after tax & portable) rest is cash. Calc. SS @ $1850 per month (from SS site) for 28 yrs (start @ 62) = total about $1.9M. No debt, no house (apt.) Bought a new Travel Trailer & adopted an older dog. Assumption: no increase in money; then have about $57k for 33 yrs. (= 90). I am frugal. Can I do it? Afraid to take the plunge...but job is killing me, literally :confused:
 
You should be fine unless inflation spikes. Is your high cash/cash equivalent position intentional?

Suggest you check our Quicken Lifetime Planner (a good, basic easy to use retirement planning tool that is part of Quicken Deluxe and higher) and FireCalc but off-the cuff I think you should be ok.

Have you considered just plunking the whole lot into Vanguard Wellesley? It's pretty conservative and IMO a lot better than cash in your circumstances.

What do you mean that 401k is "mostly after-tax"? Usually 401k is pre-tax but perhaps you have an unusual situation.
 
Believe we are in deflationary environment and USD will be best in depression. Had the option to put money in 401k before or after taxes paid. Put it in after taxes paid (my contribution) would owe on matching and gain. Thanks, for ypu reply & questions.
 
What does FireCalc say? I would think it would be near %100.
 
Jack - yes, you are right it does. But taking that 'leap of faith'. Thanks.
 
rjohnla said:
Believe we are in deflationary environment and USD will be best in depression. Had the option to put money in 401k before or after taxes paid. Put it in after taxes paid (my contribution) would owe on matching and gain. Thanks, for ypu reply & questions.
Click to expand...

You may want to check it out but I seem to recall that one can rollover after-tax 401k monies into a Roth IRA.

I had some after-tax 401k money but didn't know about the rollover possibility at the time so I just took the cash.

Fear is natural - many of us have gone through it - change is hard.
 
What are your annual expenses ?
rjohnla said:
I'll be 57 at end of this year and have about $1.3M (Cash or cash equivalent) $260k - 30 yr. USG Bonds in Pension (portable); $250k 401k (most after tax & portable) rest is cash. Calc. SS @ $1850 per month (from SS site) for 28 yrs (start @ 62) = total about $1.9M. No debt, no house (apt.) Bought a new Travel Trailer & adopted an older dog. Assumption: no increase in money; then have about $57k for 33 yrs. (= 90). I am frugal. Can I do it? Afraid to take the plunge...but job is killing me, literally :confused:
Click to expand...
 
Not much and would be less if retired: Just Food, Ins., Utilities for Travel Trailer (set up to go off grid for weeks) gas, entertainment - could probably do it on $30k. Guess I need to move off the intro site and post elsewhere according to sticky...
 
rjohnla said:
Not much and would be less if retired: Just Food, Ins., Utilities for Travel Trailer (set up to go off grid for weeks) gas, entertainment - could probably do it on $30k. Guess I need to move off the intro site and post elsewhere according to sticky...
Click to expand...

Sounds great. I see a travel trailer with off grid potential in our future, too.
 
1/2 Lab, 1/2 Shar Pei. Great shape for about 8 yrs. & weighs 80 pounds - dog trainer coming next week, but he's really a great dog. People don't want the old ones so much, he's home forever now.
 
Check out KZ, great quality - family owned, lot of Amish employees & happy.
 
Welcome to the forum. Your numbers look good. They would be lots better if instead of being so heavy in cash and bonds you had a balanced asset allocation. Inflation is pretty low recently but it is still eating away at your cash heavy portfolio. If you live for more than 25 more years or inflation goes higher it could be a problem for you.
 
rjohnla said:
1/2 Lab, 1/2 Shar Pei. Great shape for about 8 yrs. & weighs 80 pounds - dog trainer coming next week, but he's really a great dog. People don't want the old ones so much, he's home forever now.
Click to expand...

OK, sounds like you are good to go, then.
 
You have a good amount of assets and you are invested very conservatively. It seems like you are at risk if inflation runs up. I think it would be well worth it for you to get professional advice from a fee based financial planner. You have too much at stake to do it on your own

What do you plan to do about your health care cost? You are 8 year away from Medicare. You may be shocked at what your health care can cost over those 8 years
 
Welcome - Charley and you should be good to go. Especially if your job is killing you.
Your ability to take the low road is a big +. No friction from me on the high cash position, the future is yet to be written. good luck
 
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