capjak
Full time employment: Posting here.
Been here awhile but getting close to retire date (i moved from July 2017 to Jan 2018)
Looking for ideas on bridging from 62 to 70 Social Security with low risk, low cost. Risk Profile Moderate risk moving more conservative as no paycheck. Have investigated and interested in building a Floor of appx $90,000 income plus 3% inflation (62-70), so investigated SPIA and Bond Ladders. Like SPIA for Longevity but costs are high based on our age and interest rates. Bond Ladders seem to be expensive also. Concerned with Equity/bond allocation and systematic withdrawals due to sequence of return risk early in retirement.
Me: 55 YO retire January 2018
DW: 54 retired June 2017 (longevity in family)
Investable Assets:4.5 M (split 60/40 qualified/non-qualified) plus 200K bank cash
Asset Allocation Stock 46%: 38% US stock funds, 8% International
Asset Allocation Bond 43%: 38% US Bond Funds, 5% international
Asset Allocation Cash 11%:
Pension starting in 2018: Me: 42K, DW: 7K
Spending Current: $101K after tax (no mortgage,Zero debt)
Spending Retire Target: 120K after tax, retiree healthcare through company appx 7K per year 2k out of pocket
My thoughts build 7 year ladder of 90K (90k+49 pension covers it with inflation) per year to cover expenses 62-70 or purchase SPIA when 62 or start laddering SPIA to build floor and lifetime income (36K SPIA +49K pension lifetime base plus systematic withdrawal).
Looking for ideas on bridging from 62 to 70 Social Security with low risk, low cost. Risk Profile Moderate risk moving more conservative as no paycheck. Have investigated and interested in building a Floor of appx $90,000 income plus 3% inflation (62-70), so investigated SPIA and Bond Ladders. Like SPIA for Longevity but costs are high based on our age and interest rates. Bond Ladders seem to be expensive also. Concerned with Equity/bond allocation and systematic withdrawals due to sequence of return risk early in retirement.
Me: 55 YO retire January 2018
DW: 54 retired June 2017 (longevity in family)
Investable Assets:4.5 M (split 60/40 qualified/non-qualified) plus 200K bank cash
Asset Allocation Stock 46%: 38% US stock funds, 8% International
Asset Allocation Bond 43%: 38% US Bond Funds, 5% international
Asset Allocation Cash 11%:
Pension starting in 2018: Me: 42K, DW: 7K
Spending Current: $101K after tax (no mortgage,Zero debt)
Spending Retire Target: 120K after tax, retiree healthcare through company appx 7K per year 2k out of pocket
My thoughts build 7 year ladder of 90K (90k+49 pension covers it with inflation) per year to cover expenses 62-70 or purchase SPIA when 62 or start laddering SPIA to build floor and lifetime income (36K SPIA +49K pension lifetime base plus systematic withdrawal).