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My wife and I are now retired and have almost all our savings in the stock market in various forms. We are ok with this because we feel pretty confident that our pensions and social security are enough for day to day expenses now and in the future.
Pensions -- both total $6,700 a month (after taxes), with a popup feature of about $200 a month increase when the first spouse would die.
Social Security -- $3,300 a month for both after taxes and the current Part B medicare premium and Part D.
The social security would, of course, cut in 1/2 upon the first spouse dying.
Total without touching our savings -- $10,000 take home a month. $8,500 for one surviving spouse.
We have about $800,000 in the stock market, some of which is Roth stock account ($220,000) which currently generates about $900 a month in dividends that we reinvest.
Another 400,000 is in a regular IRA which we also reinvest those dividends.
The last $180,000 is in taxable stocks.
We have some minimal life insurance -- some of which can be cashed out as it was whole life. We are still paying around $300 a month in premiums to keep them active but at our age (nearing 65) I wonder whether we should cancel them and pull the cash out of the policies that have surrender value.
We own our home worth about $300,000. We basically don't have any liabilities EXCEPT for weddings, grandchildren, help with their homes, etc. as that comes up..... being parents to two grown daughters.
I would say yes, you CAN be in the stock market. But on the other hand, you don't HAVE to be in the stock market. The only question mark might be the stability of your pension payments.
Dump the life insurance, unless you can explain to yourself why you have life insurance.
So your net worth is $1.1 million with $300K in your house and the rest in the market? That's not very balanced. Most people would have a more balanced portfolio, particularly after this very lengthy market run-up.
With hefty pensions and decent SS, and virtually all monies from investments as discretionary, there is no need to not be in say 60-75% equities. I would never be 100%, because sure as sunset, when you need to tap that egg, it will be after a down turn,
Advice, very legitimate question that I fully understand. I would say stay 65-70% equities being mindful of whether you want that same allocation for new money going in. I routinely ask myself the same question.
Stating the condition of our reality is not bragging but just that stating our reality. If a person states they are very low income when asking a question, we don't assume they want a pity party do we?
I would positive info would be greeted with the same objectivity.
What are your investment goals? Because if you can meet your investment goals which is largely based on your needs in retirement, if you can do this without it being exposed at all, that's a consideration. This has more to do with what you are trying to do, and more importantly what makes you feel better so you don't have to worry.
I know people like to get their take on how to invest and what the balance should be, but that ignores your specific goals. The goal isn't to simply have a lot more money, because they is a thing, not a goal. Do you need more money to live on? What happens if there is a downturn in the market, will it matter to you financially and emotionally?
Thanks for all your replies... I am currently working part time and putting the maximum yearly amount into a 403b fixed guaranteed interest bearing fund. $24,000 a year. We should have about 110,000 at 3.5% in that fund when I quit next year. We retired in 2012 but didn't start that fund until 2014 while working part time.
We are planning to use that money to supplement until I start taking my social security at FRA. We are taking my wife's social security now as she is currently disabled. Also, I am moving some of my taxable stocks as I earn dividends into a tax free municipal bond fund, but that is a slow process and not earning much dividends in that particular group of stocks.
What are your investment goals? Because if you can meet your investment goals which is largely based on your needs in retirement, if you can do this without it being exposed at all, that's a consideration. This has more to do with what you are trying to do, and more importantly what makes you feel better so you don't have to worry.
I know people like to get their take on how to invest and what the balance should be, but that ignores your specific goals. The goal isn't to simply have a lot more money, because they is a thing, not a goal. Do you need more money to live on? What happens if there is a downturn in the market, will it matter to you financially and emotionally?
Sometimes you are fortunate and things work out leaving having a lot more money as a viable goal.
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