Hi all,
First of all, want to say thanks to everyone on this website who have contributed their words of wisdom. I've been reading the forums for some time now, and picked up a lot of good info.
About 7 months ago, I was pushed to make a career decision (either follow my job across the country, or take early retirement). Because I didn't want to uproot my spouse and my son from their current jobs, decided it was time to call it quits and took ER. Also, after 34 years in the same job, I was getting really burnt out (stress, commuting, etc. etc). In addition, I had just turned 53 and felt like it was time to do something different in my life.
Left with the following:
29k annual pension
800k in Fidelity IRAs (which I started drawing down $24k annually using the 72T SEPP rule)
29k in savings
20k in spouse's 401k
Retiree Healthcare is covered, monthly contribution is $380 (covers me, spouse, adult son).
Primary home is under water by ($51k) as our region saw that huge drop several years ago (but home do values appear to be starting to finally rise this year, forecasted for 15% gain for 2013). Still owe a lot on the house. Actually considered walking away from it, but felt that I had an obligation to pay my loan, especially since I can make the monthly mortgage. Besides, you have live somewhere..right?
Have a rental property with equity of about $77k, renting for about $1300 a month. Expenses for the property are about $400/month, remainder of $840/month towards mortgage/extra principal. The Rental property should be fully paid off in 10 years.
With my pension and the 72T draw from the IRA, I'm still a little short meeting my monthly expenses (about $55k per year). I plan to take a part-time job to help close that gap.
Spouse works, but most of her income goes towards her school loan, her 401k contribution and working related expenses.
Question on the $800 IRA. I have it invested $380k mostly in Domestic stocks and some Foreign. $93k in bond funds. $327k in money markets (cash).
Been advised from the Fidelity folks that I should be investing the money market funds, but with the stock markets being at all time highs, I'm concerned about a major correction. Don't feel too good about bonds either, since interest rates are at all time lows.
I do realize the long term philosophy about adopting a set allocation and sticking to it, but I just don't know if now is the time to jump in with the remaining money market funds.
Would appreciate any advice, thoughts that anyone might be able to share on both my current financial situation, and what path to take on the IRA allocation.
First of all, want to say thanks to everyone on this website who have contributed their words of wisdom. I've been reading the forums for some time now, and picked up a lot of good info.
About 7 months ago, I was pushed to make a career decision (either follow my job across the country, or take early retirement). Because I didn't want to uproot my spouse and my son from their current jobs, decided it was time to call it quits and took ER. Also, after 34 years in the same job, I was getting really burnt out (stress, commuting, etc. etc). In addition, I had just turned 53 and felt like it was time to do something different in my life.
Left with the following:
29k annual pension
800k in Fidelity IRAs (which I started drawing down $24k annually using the 72T SEPP rule)
29k in savings
20k in spouse's 401k
Retiree Healthcare is covered, monthly contribution is $380 (covers me, spouse, adult son).
Primary home is under water by ($51k) as our region saw that huge drop several years ago (but home do values appear to be starting to finally rise this year, forecasted for 15% gain for 2013). Still owe a lot on the house. Actually considered walking away from it, but felt that I had an obligation to pay my loan, especially since I can make the monthly mortgage. Besides, you have live somewhere..right?
Have a rental property with equity of about $77k, renting for about $1300 a month. Expenses for the property are about $400/month, remainder of $840/month towards mortgage/extra principal. The Rental property should be fully paid off in 10 years.
With my pension and the 72T draw from the IRA, I'm still a little short meeting my monthly expenses (about $55k per year). I plan to take a part-time job to help close that gap.
Spouse works, but most of her income goes towards her school loan, her 401k contribution and working related expenses.
Question on the $800 IRA. I have it invested $380k mostly in Domestic stocks and some Foreign. $93k in bond funds. $327k in money markets (cash).
Been advised from the Fidelity folks that I should be investing the money market funds, but with the stock markets being at all time highs, I'm concerned about a major correction. Don't feel too good about bonds either, since interest rates are at all time lows.
I do realize the long term philosophy about adopting a set allocation and sticking to it, but I just don't know if now is the time to jump in with the remaining money market funds.
Would appreciate any advice, thoughts that anyone might be able to share on both my current financial situation, and what path to take on the IRA allocation.