Diversifying My Retirement Funds and Confused
* * *I've always been very impressed with the wisdom a lot of you show, and the expertise you have about retirement income.* So here goes.....
* * *Back around 1977 I started putting money into a very reputable private retirement pension plan.* I've been so obsessed with retiring in relative comfort that I consistently put money into the this private pension plan on a monthly basis for all these years.* However, here I am 58, soon to be 59, and I have about $760,000 in this retirement account but very little money in the bank.* Not only that, but because I am a conservative investor, I have about $600,000 of all of this money in an annuity getting 5.1%, and the rest in stocks, bonds and real estate stocks.* I have very little money in the bank, and all my life my rent has always been paid for by the school I have worked for.
* * *I talked* to a financial plannner today who said that I lacked diversification.* He made me feel sort of bad, especially after I thought I was diversified.* Sometimes I think that with life so short and all this money tied up waiting for me to start using, I almost feel like I should start using it soon.*
* * *Here are my 1st question.* Given that I do not have any sort of extravagant lifestyle, is it reasonable to retire early so that I can person can start using some of my retirement income to re-invest and become more diversified?* My retirement income would be about $52,000/year.* Any experience investing retirement income out there?
* * *Here is my 2nd question.* If I retired using only the interest on the $600,000 annuity, I would be getting about $32,000* per year, and then I could work part-time and wait a few more years to get full retirement (which increase every year the longer I wait)* Would that be more advisable than getting the full retirement?* The only problem with this is I would not be able to re-invest the money and probably spend all of the $32,000 to live.
* * Here is my 3rd question.* Do many of you work part-time where you really can supplement your retirement income while working very few hours a day?* Do you do it because you need to or want to?*
* * *My health/medical insurance will be inexpensive in my case, so that is not a big concern.* I would have to get used to actually renting a place.* I've never done that in my life.
* * Thank you for any advice you can give.
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