Hi everyone:
I would just like some ideas and responses as to what you would do to change your portfolio upon retiring with the following financial situation:
50 years old, single, no children or dependents.
Asssets: 1.5 mil in brokerage accounts, 500k in IRA, rental home equity of 500k, personal residence equity of 200k.
Current annual income: salary 55k, rental income 30k, pension with cola 20k. Have low-cost health insurance coverage that comes with pension.
I need 50k to 60k per year to live comfortably. Once I retire this year, my income will be the 30k rental income and 20k pension for a total of 50k. Therefore, only need a maximum of about 10k per year from my investment portfolio (unless more is needed for unforeseen (or planned) large expenses like home repair or remodel, long-term care insurance, etc.)
My current portfolio consists of 90% individual stocks and equity mutual funds (mostly large cap with a small percentage of small/mid-cap and foreign stock mutual funds) and 10% cash. I am sure this is quite risky for someone going into retirement. (Although I probably wouldn't have been able to build up my portfolio to where it is now if I was too conservative with my investments.)
However, with retirement, I would like to know what types of more conservative investments would be good now as I am concerned about preservation of capital. On the other hand, still wouldn't mind holding some equities as I still feel that over the long run, stocks will do better than bonds and other fixed income securities. I would like to leave some money to some relatives and special charities.
I realize everyone has different tolerance for risk, but just wanted to get some new ideas, attitudes, thoughts about this. Would appreciate any input. Thanks.
Toejam
I would just like some ideas and responses as to what you would do to change your portfolio upon retiring with the following financial situation:
50 years old, single, no children or dependents.
Asssets: 1.5 mil in brokerage accounts, 500k in IRA, rental home equity of 500k, personal residence equity of 200k.
Current annual income: salary 55k, rental income 30k, pension with cola 20k. Have low-cost health insurance coverage that comes with pension.
I need 50k to 60k per year to live comfortably. Once I retire this year, my income will be the 30k rental income and 20k pension for a total of 50k. Therefore, only need a maximum of about 10k per year from my investment portfolio (unless more is needed for unforeseen (or planned) large expenses like home repair or remodel, long-term care insurance, etc.)
My current portfolio consists of 90% individual stocks and equity mutual funds (mostly large cap with a small percentage of small/mid-cap and foreign stock mutual funds) and 10% cash. I am sure this is quite risky for someone going into retirement. (Although I probably wouldn't have been able to build up my portfolio to where it is now if I was too conservative with my investments.)
However, with retirement, I would like to know what types of more conservative investments would be good now as I am concerned about preservation of capital. On the other hand, still wouldn't mind holding some equities as I still feel that over the long run, stocks will do better than bonds and other fixed income securities. I would like to leave some money to some relatives and special charities.
I realize everyone has different tolerance for risk, but just wanted to get some new ideas, attitudes, thoughts about this. Would appreciate any input. Thanks.
Toejam