Achiever51
Thinks s/he gets paid by the post
- Joined
- Feb 28, 2007
- Messages
- 1,015
I am so very happy to have found this board -- I am learning more than you can possibly imagine from reading all the posts! Now, I am reaching out for some specific advice.....
I am recently retired (age 56) and receive a pension that covers about 72% of our current household expenses -- which will decrease once we sell the McMansion and move to a smaller residence somewhere. DH (age 60) is self-employed and is subsidizing the rest of the monthly budget. He plans to continue working for 3-5 years; and he does not plan to draw SS until fully retired. I really haven't run the numbers yet to decide when to draw SS and have not included it in any of my calculations.
In addition to hubby's SEP that he manages and is pleased with, I have a total of about $500k in a combination of an employer-sponsored 401(k) at Merrill Lynch (about $410k, which I'd prefer to move as the investment options are very limited now that I'm a retiree); I also have a lump sum pension distribution(~$85k)from another past employer that is available for rollover (or I can take this piece as a $410/mo pension -- no thanks); and a small IRA (~$10k) at a local bank. Although I have been a pretty active -- and reasonably successful -- trader in my 401(k), I would like to consolidate my investments in one place and not spend so much time managing them myself.
Based on the FIRECalc, I'd like to draw 3% to 3.5% annually from the portfolio beginning in 2011; I can stomach a reasonable level of risk in the portfolio in exchange for a higher return -- minimum 8 to 10%/annually; want to minimize fees, loads, etc. (Also, we have about one year's total budget set aside in cash & other highly liquid investments. And DH's SEP is considered emergency or "toy box" funds for future travel, etc.)
As an aside, I did talk to the local bank holding the small IRA about what they could do for me -- as they claimed that they could provide flexibility and customer service equal to or superior to any other investment opportunity. Their "financial specialist" tried to talk me into a Pacific Life variable annunity -- "to protect my portfolio" -- when I stopped laughing, she then tried to interest me in three Franklin Templeton Funds...the Franklin Income Fund (4.25% front load), the Templeton Growth Fund (5.75% front load) and the Mutual Shares Fund (5.25% front load). I asked her if she had much success getting suckers clients to invest in these "opportunities" and she responded that they were very popular, particularly among women! I was beyond angry, to say the least. This is sad...but I digress.
I have been following the threads on Vanguard Funds here on the board and have done some research on their site. I'm thinking of moving the 401(k), rollover pension distribution and IRA into some combination of Vanguard Funds that will approximate 60%-65% stocks and 35%-40% bonds. I'm looking at the Total Bond Market Index Admiral; Total Stock Market Index Admiral; Diversified Equity Inv; and Total International Stock Index - with about 40% in the Bond index and about 20% in each of the other three.
Does this make sense? What am I missing? Should I be looking at something else? Thoughtful insights will be greatly appreciated!
I am recently retired (age 56) and receive a pension that covers about 72% of our current household expenses -- which will decrease once we sell the McMansion and move to a smaller residence somewhere. DH (age 60) is self-employed and is subsidizing the rest of the monthly budget. He plans to continue working for 3-5 years; and he does not plan to draw SS until fully retired. I really haven't run the numbers yet to decide when to draw SS and have not included it in any of my calculations.
In addition to hubby's SEP that he manages and is pleased with, I have a total of about $500k in a combination of an employer-sponsored 401(k) at Merrill Lynch (about $410k, which I'd prefer to move as the investment options are very limited now that I'm a retiree); I also have a lump sum pension distribution(~$85k)from another past employer that is available for rollover (or I can take this piece as a $410/mo pension -- no thanks); and a small IRA (~$10k) at a local bank. Although I have been a pretty active -- and reasonably successful -- trader in my 401(k), I would like to consolidate my investments in one place and not spend so much time managing them myself.
Based on the FIRECalc, I'd like to draw 3% to 3.5% annually from the portfolio beginning in 2011; I can stomach a reasonable level of risk in the portfolio in exchange for a higher return -- minimum 8 to 10%/annually; want to minimize fees, loads, etc. (Also, we have about one year's total budget set aside in cash & other highly liquid investments. And DH's SEP is considered emergency or "toy box" funds for future travel, etc.)
As an aside, I did talk to the local bank holding the small IRA about what they could do for me -- as they claimed that they could provide flexibility and customer service equal to or superior to any other investment opportunity. Their "financial specialist" tried to talk me into a Pacific Life variable annunity -- "to protect my portfolio" -- when I stopped laughing, she then tried to interest me in three Franklin Templeton Funds...the Franklin Income Fund (4.25% front load), the Templeton Growth Fund (5.75% front load) and the Mutual Shares Fund (5.25% front load). I asked her if she had much success getting suckers clients to invest in these "opportunities" and she responded that they were very popular, particularly among women! I was beyond angry, to say the least. This is sad...but I digress.
I have been following the threads on Vanguard Funds here on the board and have done some research on their site. I'm thinking of moving the 401(k), rollover pension distribution and IRA into some combination of Vanguard Funds that will approximate 60%-65% stocks and 35%-40% bonds. I'm looking at the Total Bond Market Index Admiral; Total Stock Market Index Admiral; Diversified Equity Inv; and Total International Stock Index - with about 40% in the Bond index and about 20% in each of the other three.
Does this make sense? What am I missing? Should I be looking at something else? Thoughtful insights will be greatly appreciated!