goingtotravel
Recycles dryer sheets
- Joined
- Jun 1, 2018
- Messages
- 176
Not sure if this is the right board for this question but here goes. We are trying to figure out where to invest an inheritance that is approximately worth 10% of our current portfolio. We are inheriting a few IRA's where the original owner was already taking their RMD's due to age.
We plan to FIRE in 2 years for DH and 2 1/2 years for me. All of our investments are in tax deferred accounts and they will cover approximately 35% - 40% of our anticipated expenses in retirement with pensions and SS (eventually) covering the rest. We actually don't even need the 35%, could go much lower, but that is for a very generous budget covering a lot of travel, keep our large home, continuing to contract out our lawn maintenance, etc
We are focusing on bringing our emergency fund up to cover 6 months expenses right now and we will have paid off all debt but our mortgage which has a 3.75% rate. We have a VA loan and can for very little money lower that rate if rates decline again and we plan to carry the mortgage into retirement so we don't want to use the money to pay down the mortgage.
Our portfolio is currently invested with 54% fixed income and 46% stocks. Stock split is 25% large cap fund, 7% small cap fund, and 14% international fund. We are being a bit conservative right now and may start increasing our equity allocation once we retire and feel comfortable with our projected expenses.
We have to decide what to do with the inheritance this month. Give our situation how would you invest this money?
We plan to FIRE in 2 years for DH and 2 1/2 years for me. All of our investments are in tax deferred accounts and they will cover approximately 35% - 40% of our anticipated expenses in retirement with pensions and SS (eventually) covering the rest. We actually don't even need the 35%, could go much lower, but that is for a very generous budget covering a lot of travel, keep our large home, continuing to contract out our lawn maintenance, etc
We are focusing on bringing our emergency fund up to cover 6 months expenses right now and we will have paid off all debt but our mortgage which has a 3.75% rate. We have a VA loan and can for very little money lower that rate if rates decline again and we plan to carry the mortgage into retirement so we don't want to use the money to pay down the mortgage.
Our portfolio is currently invested with 54% fixed income and 46% stocks. Stock split is 25% large cap fund, 7% small cap fund, and 14% international fund. We are being a bit conservative right now and may start increasing our equity allocation once we retire and feel comfortable with our projected expenses.
We have to decide what to do with the inheritance this month. Give our situation how would you invest this money?