Investing in retirement... (bond, balanced fund, dividend, commission)
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I'm planning on retiring in about six months. I will get a defined pension and also have some land rental income which will provide for my living expenses. I'll be almost 61 when I retire and also will start my social security at age 62.
I also have about $140,000 that I really want to grow and perhaps draw a small amount of income from each year.
I'm struggling with how to invest this lump sum. Im thinking an etf...perhaps total stock market index etf or a balanced etf or a dividend stoc etf such as div. Could also just use spy.
the scarey thing about questions like this is they say i have no knowledge and experience at investing .
so they are akin to calling up a doctor and saying i have a headache ,what is wrong with me.
without knowing your risk tolerance ,your stomach for volatility ,ability to stay the course when 30% or more of your money is evaporating no one can give you the correct answer.
how much do you hope to draw is a factor as well as if you will need any of it if you need a car ,a roof or a medical emergency? do you have an emergency fund?
did you know whether you are a man or a woman can effect that answer as well as the psychological needs from investing are different.
oh we can give you answers but the correct answer will not be one of them if it is a quck shot from the hip..
ask yourself how you will sleep at night if we take a substaintial plunge? then once those questions are answered only then can something close to what fits you can be put togther.
Last edited by mathjak107; 12-07-2014 at 01:37 AM..
I'm planning on retiring in about six months. I will get a defined pension and also have some land rental income which will provide for my living expenses. I'll be almost 61 when I retire and also will start my social security at age 62.
I also have about $140,000 that I really want to grow and perhaps draw a small amount of income from each year.
I'm struggling with how to invest this lump sum. Im thinking an etf...perhaps total stock market index etf or a balanced etf or a dividend stoc etf such as div. Could also just use spy.
Any suggestions?
Thanks.
Go see an advisor who can spend enough time to get to know your problems and recommend a solution that has the highest probability of meeting your goals.
The conventional wisdom is to make it a fee-only advisor, who (hopefully) makes no commission from recommending and selling specific products, so he or she can make unbiased recommendations.
I'm planning on retiring in about six months. I will get a defined pension and also have some land rental income which will provide for my living expenses. I'll be almost 61 when I retire and also will start my social security at age 62.
I also have about $140,000 that I really want to grow and perhaps draw a small amount of income from each year.
I'm struggling with how to invest this lump sum. Im thinking an etf...perhaps total stock market index etf or a balanced etf or a dividend stoc etf such as div. Could also just use spy.
Any suggestions?
Thanks.
You are not alone, do some research on your own and read forums and may I suggest Bogleheads and Early Retirement. You will see others who have pension/ss income streams greater than their expenses and the potential to continue to invest in retirement. I have often wish there was a dedicated forum for just that. Realize that many responding will be alien to the concept of having a nest egg that you don't need to touch in retirement. You have some alternatives and that includes deferring SS beyond age 62 to at least 66 or 70. Your thinking is close to where you might want to end up investing as you probably want something providing total market stability, however you don't want to be all equities and need to consider what is a comfortable asset allocation. How is your 140K currently invested and why do you want to change?
l noticed from a previous post that you had a July 1, 2015 retirement date target. That date is popular with teachers as it is at the end of one school year and prior to the start of another. You don't have to retire just because you are eligible. Many make that mistake and you have from previous postings had a lot of questions about when to take SS etc etc etc. Staying the course another year or two could provide you with a lot more leverage to build your retirement around.
I'm planning on retiring in about six months. I will get a defined pension and also have some land rental income which will provide for my living expenses. I'll be almost 61 when I retire and also will start my social security at age 62.
I also have about $140,000 that I really want to grow and perhaps draw a small amount of income from each year.
I'm struggling with how to invest this lump sum. Im thinking an etf...perhaps total stock market index etf or a balanced etf or a dividend stoc etf such as div. Could also just use spy.
Any suggestions?
Thanks.
I would say either Vanguard Wellington or Vanguard Wellesley Income. Both are actively managed but index-fund cheap. They both charge .18% if your balance is 50K or larger. Wellesley income is more bond heavy than Wellington. Wellington is more your classic balanced fund, 65% dividend paying stocks & 35% investment grade bonds. Both are top 10% long term performers in their respective categories.
I'm planning on retiring in about six months. I will get a defined pension and also have some land rental income which will provide for my living expenses. I'll be almost 61 when I retire and also will start my social security at age 62.
I also have about $140,000 that I really want to grow and perhaps draw a small amount of income from each year.
I'm struggling with how to invest this lump sum. Im thinking an etf...perhaps total stock market index etf or a balanced etf or a dividend stoc etf such as div. Could also just use spy.
Any suggestions?
Thanks.
SPY (or VOO) + XLP + AGG
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