50, just retired, $1m cash

[DrgLrd]

Hello! Happy to join here, this place comes highly recommended and I have plenty of questions.

 

[MichaelB]

Ask away!

 

[DrgLrd]

Ask away!

Before the investment advice, I have to decide between renting (forever?) or buying a house: https://www.early-retirement.org/forums/f28/house-renting-vs-buying-113097.html

 

[Out-to-Lunch]

Welcome aboard!

 

[corn18]

Welcome Aboard!

 

[pb4uski]

Welcome to retirement DrgLrd!

I'm just curious given your screen name how you acquired that $1m of cash... and if it is 100s or 50s or 20s or in a bank (hopefully more than one bank given the FDIC limits).

 

[street]

Great! Did you rob a bank? Lol

 

[Markola]

Must have made someone an offer they couldn’t refuse.

 

[Montecfo]

Welcome to the forum!

 

[MRG]

Welcome to a great place to learn about retirement.

 

[NW-Bound]

"50, just retired, $1m cash"

$1M is 10,000 Benjamins.

That's 10 stacks of 1,000 Benjamins each, each stack being about 5" high.

 

[DrgLrd]

Welcome to retirement DrgLrd!

I'm just curious given your screen name how you acquired that $1m of cash... and if it is 100s or 50s or 20s or in a bank (hopefully more than one bank given the FDIC limits).

4 bank accounts for the FDIC coverage. Waiting impatiently for the FED to raise rates, but I plan on getting deep into annuities either after I buy a house, or after I decide I'm going to keep renting a house.

 

[DrgLrd]

"50, just retired, $1m cash"

$1M is 10,000 Benjamins.

That's 10 stacks of 1,000 Benjamins each, each stack being about 5" high.

Thanks for the new avatar

 

[kgtest]

Don't buy annuities. You can do better and be better protected just investing into the stock market. An annuity is an insurance contract, a bad one at best...with low returns, and some risk. My as well take some risk like you have when you earned your first milly and put some money in the market. Right now its a fire sale at a 10 to 15% discount.

VTI. VWINX. Or for a bigger reward, MGK. You are buying into the notion that a basket of equities from companies that have growth potential to produce earnings per share will then reward you. An annuity is a bet against the actuaries that are much better at figuring out how to produce the least possible return based on your age and life expectancy. Damn near an insurance contract with the devil IMHO.

Unless you have sporadic and uncontrollable spending patterns. But even if that is the case, I would still find another way to do it besides annuities. Why do you like annuities as your gameplan?

 

[DrgLrd]

Why do you like annuities as your gameplan?

Guaranteed income. The 1m is everything, there's no plan or pension, so annuities are perfect for me, SPIA for the no risk immediate (like a pension), DFA or MYGA for the no risk deferred, FIA for small risky growth, RILA for more risk, more growth, there are so many options that I'll need to get into shortly.

 

[Helen]

OP, are you in the US? Will you be getting Social Security at some point?

 

[DrgLrd]

OP, are you in the US? Will you be getting Social Security at some point?

I'm a citizen but living outside the US, is there any way to check if I will get SS and how much? It was only taken out when I was working part time, not when I started working for myself.

 

[MichaelB]

I'm a citizen but living outside the US, is there any way to check if I will get SS and how much? It was only taken out when I was working part time, not when I started working for myself.

Here’s a SSA publication that covers pension eligibility for individuals living outside the US. https://www.ssa.gov/pubs/EN-05-10137.pdf

 

[DrgLrd]

Here’s a SSA publication that covers pension eligibility for individuals living outside the US. https://www.ssa.gov/pubs/EN-05-10137.pdf

Anything like a website where I can plug in my SS# and get personal info? Because if not I have no idea, I will have to contact them directly I guess.

 

[Out-to-Lunch]

Anything like a website where I can plug in my SS# and get personal info? Because if not I have no idea, I will have to contact them directly I guess.

Yes, go to ssa.gov.

 

[Major Tom]

Anything like a website where I can plug in my SS# and get personal info? Because if not I have no idea, I will have to contact them directly I guess.

This tool on the Social Security site is not precise, but gives pretty good estimates based on your personal earnings record.


https://www.ssa.gov/benefits/retirement/estimator.html

 

[DrgLrd]

ssa.gov.

We have suspended electronic access to your personal information.

We tried three times to match the information you provided with our records, but were unable to do so. You may try to access the electronic information again after 24 hours. Please verify your personal information again before trying to use this online service.

I will try again from a VPN with US server, all other info is correct.

 

[NW-Bound]

Thanks for the new avatar

You are welcome (although the photo is not mine).

How about $1 million in $20 bills?

 

[DrgLrd]

This tool on the Social Security site is not precise, but gives pretty good estimates based on your personal earnings record.


https://www.ssa.gov/benefits/retirement/estimator.html

Last Year's Earning Only include wages or net self-employment income that is covered by Social Security.

What isn't covered by SS? My earnings were from a K1, nothing was ever taken out for SS for the past 15 years.

 

[Omega]

You need 40 Quarters (10 years) of contributions to SS to receive benefits.