Retired Aerospace Dude…

[Fryeca]

Hello folks! After 42 years, 11 Navy, and 31 Northrop Grumman I called it done. Retired at 59 in 2020. I’m fortunate to have a good pension + SS. On the health exchange here in my state and am very pleased.

My employers 401k never really performed like I expected (still with them) but was able to squirrel away a decent coin.

I’m looking for somewhere to invest over 5ish years that paces ahead of inflation and does well. Just heard about SDIRA funds this morning. Anyone having a good experience with this investment format?

 

[Out-to-Lunch]

Welcome to E-R!

 

[TheWizard]

No idea what SDIRA is, sorry...

 

[MarieIG]

Welcome to the forum. It seems as if you had a fascinating career and are well set up for retirement. Thank you for your service.

I have heard of Self Directed IRAs, but am not quite sure I understand the question. Are you speaking of some particular funds, i.e. target, index, etc.?

 

[Fryeca]

Self Directed IRA

 

[Fryeca]

Thank you MarieIG.
Was asking if anyone has tried this kind of invest path

 

[38Chevy454]

Thank you MarieIG.
Was asking if anyone has tried this kind of invest path

First welcome to the forum. Sounds like you have set yourself up for a successful retirement.

On the self directed IRA, I'm one that does that. Rolled over my work 401Ks into one self directed IRA. Retired before 55, so couldn't use the 55 withdrawal from 401K. The self directed IRA gave me more options for investing, and simplified the number of accounts.

Read a bunch on here. Basically you choose an asset allocation that works for your risk tolerance and timeframe(s). Many here, including myself, are into low fee index funds on the equity side. Fixed income side varies. Stick around and help educate yourself, the best investment you can make is in your financial education.

 

[MarieIG]

Thank you MarieIG.
Was asking if anyone has tried this kind of invest path

There are probably more members on this forum who self direct than have a money manger -but there are many different styles, i.e. index funds, bonds vs. bond funds, TIPS, I bonds, T-bills, selling options, etc.

The thing is - while stocks may historically beat inflation long term - no one can promise you that they will over the next five years. And while some bonds may have good interest rates for the present time - I don't think that we can predict with 100% certainty what inflation will be five years from now.

TIPs allegedly offer inflation protection - but as far as outpacing inflation . . .

Don't rush yourself - just start the learning process.

 

[obsessed]

Welcome aboard.

First off, a SDIRA is just a box to hold your investments in, just like your employer's 401K or a regular IRA. It's the investments within the box that determine your returns not the box itself (other than tax ramifications).

The most common investment that outpaces is the stock market. Publicly traded stocks/ETFs/mutual funds can all be held in a regular IRA. What kind of investments have you had your 401K in?

SDIRAs are usually used for alternative investments that you can't have in a regular IRA so unless you have one of these in mind (real estate for example), a regular IRA might be more appropriate for you. Chevy had some good advice in his post above.

 

[Fryeca]

Thanks Chevy!

 

[Fryeca]

Thank you MarieIG

 

[NW-Bound]

Welcome aboard.

When I left my aerospace megacorp 26 years ago, rolled the 401k into an IRA and have been managing it myself since. I still have a much smaller 401k with a previous megacorp.

I finally rolled my wife's 401k to an IRA 6 years ago, many years after she left her megacorp to ER.

Our IRAs are both 7-figure accounts. In going against the trend, I hold mostly individual stocks, instead of mutual or index funds. It fits my individualistic style. I have been converting them to Roth. There's a lot you will see on this forum about various money managing techniques.

 

[HI Bill]

Welcome! Congrats to making it to retirement!

I'd suggest you move your 401(k) to an IRA (direct rollover) to Fidelity or Vanguard, and create something like a Bogleheads 3-fund portfolio https://www.bogleheads.org/wiki/Three-fund_portfolio). I'm not sure why your company's 401(k) didn't perform well (high fees, limited fund choices, poor choices of funds, etc.). You should have averaged something like 7% annual returns after inflation if you have a balanced diversified, low-cost portfolio in mutual funds or ETFs. The water's fine here!

 

[Dash man]

Welcome! I’m retired from Lockheed and rolled my 401k into Schwab and also manage DW’s IRA and Roth in Fidelity. We have a mix of individual stocks, ETFs and treasuries/CDs along with some Treasury Direct iBonds and treasuries. I’ve been retired for over ten years (retired at 56) with no regrets. Used DW’s insurance followed by Cobra, then Lockheed’s retirement medical plan until Medicare kicked in. We never used ACA, which was more expensive than our other options.
Enjoy the ride!

 

[Fryeca]

Thank you all for the advice!
I’m a bumpkin from SW Pa, Blue Ridge mountains…beautiful place to grow up. My Dad was a truck driver and Mom drove a school bus. We actually lived in a two room shack ��.

Joined the Navy in 1979 and scratched my way up to E6 and stalled out at the E7 level. Passed the Chiefs test twice but never made board.

My career at Grumman started when I was 28. It was a subsidiary of Grumman Long Island. I was just starting out after leaving the Navy in a new town and new family. Pay wasn’t great, had to work seven days a week to get by. I was a Plane Captain (crew chief) on A6 intruder and later EA6B Prowlers. I moved into Support Engineering when I was 36. Started making better money + we were merged with Northrop which seemed to help us all out. Never sought out a degree, just never had time with everything else going on.

I always say….The struggle in life is what gives it meaning ��.

 

[pacergal]

Welcome to the forum. Lots of info here and many folks willing to share knowledge.
Having pension and ss gives you a good solid income base.

 

[Koolau]

Welcome to the forum.