Hello all. I've read this forum for the last few years and have asked a few questions. Lot's of good information here and it's time that I start asking a lot more questions. I have a lot to learn about investing and I appreciate all input.
To give a little background, I'm 59, my wife is 57 so we aren't exactly talking "early" retirement. We have reached the end of our rope as far as working goes. Jan 1st, 2008 is the day we call it quits.
So here is our situation. We don't have a pension in the future. This is a concern to me as far as investing goes. We will end up with 1M in lump sum pension payout, 401K's, etc. We plan on drawing $48,000 a year ( about a third of our working income). At 62 I'm eligible for $18,000 a year SS (at 66, $24,000) and my wife is eligible for $12,000 a year SS at 62. We don't have any debt, we have two houses, one paid for, the other mortgaged. We will sell the mortaged one and make a downpayment on a house for my daughter and son-in-law.
So here is my concern. I notice a lot of people on this forum have pensions, therefore they can think of a pension as a bond and take more risks in the stock market. I can't afford that luxury. My plan is to put our funds in the Vanguard Wellesley fund or a Vanguard lifestyle fund and keep about four years in CD's . I'm thinking I need to be more conservative in investing since I don't have a pension. I'm wondering what my bond/stock mix should be without a pension.
We plan on relocating when we retire and more than likely I may pick up something to do until 62. I'd appreciate any comments and advise. Thanks folks.
To give a little background, I'm 59, my wife is 57 so we aren't exactly talking "early" retirement. We have reached the end of our rope as far as working goes. Jan 1st, 2008 is the day we call it quits.
So here is our situation. We don't have a pension in the future. This is a concern to me as far as investing goes. We will end up with 1M in lump sum pension payout, 401K's, etc. We plan on drawing $48,000 a year ( about a third of our working income). At 62 I'm eligible for $18,000 a year SS (at 66, $24,000) and my wife is eligible for $12,000 a year SS at 62. We don't have any debt, we have two houses, one paid for, the other mortgaged. We will sell the mortaged one and make a downpayment on a house for my daughter and son-in-law.
So here is my concern. I notice a lot of people on this forum have pensions, therefore they can think of a pension as a bond and take more risks in the stock market. I can't afford that luxury. My plan is to put our funds in the Vanguard Wellesley fund or a Vanguard lifestyle fund and keep about four years in CD's . I'm thinking I need to be more conservative in investing since I don't have a pension. I'm wondering what my bond/stock mix should be without a pension.
We plan on relocating when we retire and more than likely I may pick up something to do until 62. I'd appreciate any comments and advise. Thanks folks.