In the Red Zone

[4th&Goal]

I'm nearing retirement and have lately been lurking here more and more. I'm intrigued by the Grangaard and Lucia type strategies as they look to me like good plans for good sleep. I'm 56 and plan to retire between 57 and 59. I already receive a pension from previous government employment and currently work as an administrator at a public university. My wife is 56 and is a public school administrator planning to work for at least 10 more years (God bless her).

If I retire at 57 I will buy a 5 year fixed annuity to take me to 62 and early Social Security. If I retire at 59 I will buy a 7 year fixed annuity to take me to 66 and full Social Security. These timelines will allow me to retire and see no drop in income. Reading hundreds of posts here has given me confidence that retirement before 60 is a real option. I look forward to getting to know you all and know I will learn much.

4th&Goal

 

[Sandy]

4th and goal, welcome. If you have been reading, you know that there are many here who are not big fans of annunities, especially with an existing pension. But if that is what lets you sleep at night, that is what matters. Keep reading and learning about the pros and cons so you will have an informed decision in 2+ years.

 

[4th&Goal]

Thanks for the welcome Sandy. The annuity wouldn't be my choice if I had started as a more informed investor. It has been in place for me for some years as part of my workplace retirement plan (defined contribution plan). The income from it will work as my bridge to Social Security while the rest of my investments remain in a diversified 50/50 stock/bond portfolio.