OK, I'm new at this but here goes:
I am a 61 years old male who will be retiring within the next few months. As of June 30 my investment portfolio stood at $875,023. My current asset allocation is 30% mid-term bond funds, 5% high yield bond funds, 44% large/mid cap funds, 15% small cap funds, and 6% international funds. Except for 830 shares of IBM, all assets are invested in mutual funds. Approximately $ 650,000 of the $875, 023 is invested in 401K, 457, IRAs, or annuities. In addition to what I consider investment assets, I also have $27,504 in money market funds, short term bond funds, passbook savings, etc. In addition, I recently inherited @ $200,000 from my Mom's estate. I plan to put this money in a money market account for at least the next year.
My pre-tax retirement income will be @ $4435 monthly. My wife, age 60, has a pre-tax retirement income of @ $650 monthly. At this time, in November of this year I plan to start drawing social security at age 62, approximately 1100 monthly. Our home is paid for and my only debt is a home equity loan for @ $35,000 and a loan for a recreational vehicle of @ $28,000. I plan to sell the RV when I retire. My retirement package also includes medical, dental, and pharmacy coverage. I will need to purchase another vehicle in the near future.
I read this forum and listen to other financial experts. However, I still end up with many questions. For example, I recently heard one needs to keep 2 years living expenses in a money market account. Most advisers recommend an annual withdrawal rate of no more than 5% of a portfolio. I guess my specific questions are: 1) Do I need to adjust my asset allocation? 2) Should I keep 2 years living expenses in a money market fund? 3) At what rate may I safely withdraw money from our portfolio? 4) How should I plan to withdraw from my portfolio? For example, should I withdraw from one fund or from several?
I guess my real question is: I have done the best I could putting money in, how do I now take it out so we can "smell the roses" while we are still physically and mentally fit
I am a 61 years old male who will be retiring within the next few months. As of June 30 my investment portfolio stood at $875,023. My current asset allocation is 30% mid-term bond funds, 5% high yield bond funds, 44% large/mid cap funds, 15% small cap funds, and 6% international funds. Except for 830 shares of IBM, all assets are invested in mutual funds. Approximately $ 650,000 of the $875, 023 is invested in 401K, 457, IRAs, or annuities. In addition to what I consider investment assets, I also have $27,504 in money market funds, short term bond funds, passbook savings, etc. In addition, I recently inherited @ $200,000 from my Mom's estate. I plan to put this money in a money market account for at least the next year.
My pre-tax retirement income will be @ $4435 monthly. My wife, age 60, has a pre-tax retirement income of @ $650 monthly. At this time, in November of this year I plan to start drawing social security at age 62, approximately 1100 monthly. Our home is paid for and my only debt is a home equity loan for @ $35,000 and a loan for a recreational vehicle of @ $28,000. I plan to sell the RV when I retire. My retirement package also includes medical, dental, and pharmacy coverage. I will need to purchase another vehicle in the near future.
I read this forum and listen to other financial experts. However, I still end up with many questions. For example, I recently heard one needs to keep 2 years living expenses in a money market account. Most advisers recommend an annual withdrawal rate of no more than 5% of a portfolio. I guess my specific questions are: 1) Do I need to adjust my asset allocation? 2) Should I keep 2 years living expenses in a money market fund? 3) At what rate may I safely withdraw money from our portfolio? 4) How should I plan to withdraw from my portfolio? For example, should I withdraw from one fund or from several?
I guess my real question is: I have done the best I could putting money in, how do I now take it out so we can "smell the roses" while we are still physically and mentally fit