Before my 60th birthday (in September 2010) I voluntarily left my position working at a very dysfunctional organization. What a relief! I had more than $1 million in my TIAA CREF account. During 2011 I withdrew about $52,000 from my IRA account and will do the same for 2012 (nets me $3500 per month after paying federal tax) Starting in January 2013 right after I turn 62 I will start collecting my social security plus social security for my 6 year old daughter that will amount to less than $35,000 per year. As some readers are aware, social security sends a check, tax free, for dependents under the age of 18. (I understand it's tax free since the tax return is filed under the child's name). We plan to use those funds to pay for any and all expenses for this active child, including her 529 plan (currently valued at around $7000) and her many extracurricular activities. We have no child care expenses, since my daughter attends an excellent public school kindergarten.
My wife (17 years younger than I) makes around $50,000 per year and through her teaching position provides the health insurance. I'm taking early social security since I have health issues to deal with (diabetic and prostate cancer survivor). I hope to last until age 75, but who knows!!! Our only debt is the mortgage of less than $120,000. We own a rental property, mortgage free, that generates about $700 per month net and has a value of $85,000. I've taken out most of my savings and deposited them in the ROTH IRA account since I can easily withdraw these monies if necessary and the TIAA CREF guaranteed fund generates 3% interest.
Today, my TIAA CREF account, including about $65,000 in a Roth IRA, still amounts to a little more than $1 million of which 47% is in the guaranteed fund, 34% in equities, 12% real estate, 3% bonds, and 5% in multi-asset (their 2010 target fund). Several financial advisors have suggested I take out some of my TIAA CREF funds and invest them in other instruments...most of which I have difficult time understanding even though I have a Ph.D.
I am very active in community activities and have no intention to seek a full or part time job....and that's OK with my wife. I feel I don't want to take on additional stress due to my medical conditions and my responsibilities helping with the care of my daughter.
I will probably reduce my TIAA CREF payment to around $2000 net per month starting in January once I start receiving social security. If anyone has suggestions about the strategies I'm using, please share with me. I've really enjoyed reading this discussion board, but this is the first time I've posted. Thanks so much!!
My wife (17 years younger than I) makes around $50,000 per year and through her teaching position provides the health insurance. I'm taking early social security since I have health issues to deal with (diabetic and prostate cancer survivor). I hope to last until age 75, but who knows!!! Our only debt is the mortgage of less than $120,000. We own a rental property, mortgage free, that generates about $700 per month net and has a value of $85,000. I've taken out most of my savings and deposited them in the ROTH IRA account since I can easily withdraw these monies if necessary and the TIAA CREF guaranteed fund generates 3% interest.
Today, my TIAA CREF account, including about $65,000 in a Roth IRA, still amounts to a little more than $1 million of which 47% is in the guaranteed fund, 34% in equities, 12% real estate, 3% bonds, and 5% in multi-asset (their 2010 target fund). Several financial advisors have suggested I take out some of my TIAA CREF funds and invest them in other instruments...most of which I have difficult time understanding even though I have a Ph.D.
I am very active in community activities and have no intention to seek a full or part time job....and that's OK with my wife. I feel I don't want to take on additional stress due to my medical conditions and my responsibilities helping with the care of my daughter.
I will probably reduce my TIAA CREF payment to around $2000 net per month starting in January once I start receiving social security. If anyone has suggestions about the strategies I'm using, please share with me. I've really enjoyed reading this discussion board, but this is the first time I've posted. Thanks so much!!