I was hoping that someone out there might be able to give me some advice. Recently, I had to retire due to a health issue. This was unexpected. I truly enjoyed by job and I had every intention of working an additional six years until my FRA of 66. Currently, I am drawing a monthly income from my group disability policy that I participated in when I was working. The plan pays me 60% of my annual salary. I also have an attorney who is working on obtaining Social Security Disability benefits for me. He feels, based on my age, health and contributions to Social Security over the past 45+ years that I stand a more than 50/50 chance of being granted benefits.
I am focusing on the time between now and when I turn 66 yrs. To get me through until then I don't want to have to depend on my disability income from my insurance company nor on the "possibility" of being granted disability benefits from Social Security. Disability insurance companies are known for their capricious ways of denying benefits. I've heard some real horror stories of folks on disability who were cut off by their insurance company without warning or reason. Social Security is truly maxed out. If the money continues great - if not, I want to be prepared for the worst.
I "currently" have almost enough money in three bond funds; PONDX, SPHIX and THOPX to get me through the next four years. All seem to be solid funds and have a duration of just a little over three years. In addition to the bond funds, I will need to draw an additional $48K from my money market. Obviously, if my disability income continues for the next several years my need for funds will be reduced by almost 50%.
This is my question, since I have the money I need "now" should I go ahead and liquidate the three bond funds? I've never gone to money in the past - but, we all know where bond funds are headed in the foreseeable future. Or, should I take my chances and see what happens?
What I haven't mentioned is that after I turn 66 and my "retirement" income (Social Security, annuities, pensions, etc,) begins, there should be enough in the remainder of our other mutual funds (index and managed) to get us through our retirement hopefully without any hiccups.
I'm really open to some advice.
I am focusing on the time between now and when I turn 66 yrs. To get me through until then I don't want to have to depend on my disability income from my insurance company nor on the "possibility" of being granted disability benefits from Social Security. Disability insurance companies are known for their capricious ways of denying benefits. I've heard some real horror stories of folks on disability who were cut off by their insurance company without warning or reason. Social Security is truly maxed out. If the money continues great - if not, I want to be prepared for the worst.
I "currently" have almost enough money in three bond funds; PONDX, SPHIX and THOPX to get me through the next four years. All seem to be solid funds and have a duration of just a little over three years. In addition to the bond funds, I will need to draw an additional $48K from my money market. Obviously, if my disability income continues for the next several years my need for funds will be reduced by almost 50%.
This is my question, since I have the money I need "now" should I go ahead and liquidate the three bond funds? I've never gone to money in the past - but, we all know where bond funds are headed in the foreseeable future. Or, should I take my chances and see what happens?
What I haven't mentioned is that after I turn 66 and my "retirement" income (Social Security, annuities, pensions, etc,) begins, there should be enough in the remainder of our other mutual funds (index and managed) to get us through our retirement hopefully without any hiccups.
I'm really open to some advice.