Hi, my wife and I are both 63. She is a manager for a large medical services company. I closed down my computer consulting business 7 years ago after a mistake in judgement that cost us close to a million dollars in savings and the associated early withdrawal IRS penalties and taxes. I have a couple of clients that together pay me around 60,000/year on a part-time basis. Between us, we make around 110,000/year.
Our remaining retirement nestegg took quite a beating (35%) in the market last year until I rebalanced into a safer allocation and stopped the bleeding. My wife will retire at age 66, and I will continue in a limited consulting practice for a few years after that. Until then we will add approximately 25K/year to our 401K and IRAs.
We currently have 410,000 in tax-deferred accounts and 60,000 in an after-tax account. The Tax deferred money is allocated as follows:
22% in MM funds
29% in OAKBX
22% in FBIDX
3% in NBGEX
6% in VIPSX
18% in an Insurance company variable annuity
We have 200,000 equity in our home, valued at 240,000.00 and very little debt. Between our SSA benefits (Last statement shows 47K combined), an old 4000.00 non-cola pension benefit and around 25K part-time earnings for the first 3 or 4 years, and a 20K draw from retirement funds we should be OK.
I am considering changing my allocation to 80% in Vanguard's Target Retirement 2015 and 20% in FBIDX. Any suggestions/advice from more experienced investors would be appreciated.
On a personal basis, I love reading, domestic travel, photography and fly fishing. And, of course, playing with my 9 yearold grandson and 4 year old granddaughter.
Our remaining retirement nestegg took quite a beating (35%) in the market last year until I rebalanced into a safer allocation and stopped the bleeding. My wife will retire at age 66, and I will continue in a limited consulting practice for a few years after that. Until then we will add approximately 25K/year to our 401K and IRAs.
We currently have 410,000 in tax-deferred accounts and 60,000 in an after-tax account. The Tax deferred money is allocated as follows:
22% in MM funds
29% in OAKBX
22% in FBIDX
3% in NBGEX
6% in VIPSX
18% in an Insurance company variable annuity
We have 200,000 equity in our home, valued at 240,000.00 and very little debt. Between our SSA benefits (Last statement shows 47K combined), an old 4000.00 non-cola pension benefit and around 25K part-time earnings for the first 3 or 4 years, and a 20K draw from retirement funds we should be OK.
I am considering changing my allocation to 80% in Vanguard's Target Retirement 2015 and 20% in FBIDX. Any suggestions/advice from more experienced investors would be appreciated.
On a personal basis, I love reading, domestic travel, photography and fly fishing. And, of course, playing with my 9 yearold grandson and 4 year old granddaughter.