I am currently 63 yrs. old and holding out for another 2 1/2 yrs for Soc Sec. I have one handicapped son, who I am concerned with providing for when I am gone, so my objective is to preserve and hopefully grow my current assets in order to leave what I have for him. Knowing the objective - here is my question. I need a NET income of about $4,000 month to live and pay expences. My current assets are:
My HOme (which I plan to sell next year) $500,000 Net
Cash $400,000
Rental Property (if sold) $500,000 Net
_________
$1,400,000 Assets
I have another small home in Arizona, that I will live in after I sell my home in Florida. My social security will only be approx. $1,600. In order to net $4,000 a month, I need a Gross income of approx. $5,700. My rental income is currently only about $2,000 a month. That's $2,100 short of what I need. I would have liked to put the $500,000 from my house sale into the stock market, but if I do that and take money out each year to help my short fall, I will not grow my money.
I could on the other hand, sell the rental properties ($500,000 Plus add 200,000 cash and keep other $200,000 in MM for emergency funds, and put that money into CD's earning 5% which will give me $2,916. income plus $800 from another rental I have in Arizona, which I would keep. That would bring me up to a gross of $5,316. (about $400 short) This would allow me to put remaining money in stocks for growth, and maybe take small shortfall amount ea. year if I had to.
I am not keen on annuities, as this will do nothing to preserve or grow my assets. When it comes to stocks, I am a novice. I have always had rental property in lieu of stocks. However, I have worked myself ragged with them and would love to be able to get out of them if it made sence. I will admit also, that I am somewhat afraid of the stock market from the stand point of possible loss. (aren't we all, I guess)
Can any of you more seasoned investors comment on my above scenerio and tell me your opinion of what avenue I should take to accomplish my goal.
modhatter
My HOme (which I plan to sell next year) $500,000 Net
Cash $400,000
Rental Property (if sold) $500,000 Net
_________
$1,400,000 Assets
I have another small home in Arizona, that I will live in after I sell my home in Florida. My social security will only be approx. $1,600. In order to net $4,000 a month, I need a Gross income of approx. $5,700. My rental income is currently only about $2,000 a month. That's $2,100 short of what I need. I would have liked to put the $500,000 from my house sale into the stock market, but if I do that and take money out each year to help my short fall, I will not grow my money.
I could on the other hand, sell the rental properties ($500,000 Plus add 200,000 cash and keep other $200,000 in MM for emergency funds, and put that money into CD's earning 5% which will give me $2,916. income plus $800 from another rental I have in Arizona, which I would keep. That would bring me up to a gross of $5,316. (about $400 short) This would allow me to put remaining money in stocks for growth, and maybe take small shortfall amount ea. year if I had to.
I am not keen on annuities, as this will do nothing to preserve or grow my assets. When it comes to stocks, I am a novice. I have always had rental property in lieu of stocks. However, I have worked myself ragged with them and would love to be able to get out of them if it made sence. I will admit also, that I am somewhat afraid of the stock market from the stand point of possible loss. (aren't we all, I guess)
Can any of you more seasoned investors comment on my above scenerio and tell me your opinion of what avenue I should take to accomplish my goal.
modhatter