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I didn't read all of this but you if the 850K is in an IRA you may have to take it out over 10 years, depending if mom was drawing on it etc etc. Your choices what to do with it will be limited by the rules you have to follow depending on the form the money is in.
I'm a 47 year old single guy with no children. My mom just passed away on Christmas Eve, and now I am inheriting about $850,000. When her house sells I will probably receive another $50,000. Right now I'm completely debt free, my house is paid off, and I currently have about $75,000 saved up. So all together I should end up with a grand total of about $975,000.
So now I need to figure out what I should do next. I'm praying that it's enough for me to quit my dead end job, which I absolutely hate, and go into retirement at age 47. But I'm not sure how realistic that is.
I don't know very much about investing or retirement planning, but I'm wondering if maybe I should invest at least the $850,000 portion into mutual funds. 6% yearly interest on that would give me another $50,000 per year, so maybe I could just live off of the interest? For what it's worth, I currently spend about $25,000 per year in total expenses. So if I quit my job right now, and maintained my current lifestyle, then I assume that it would probably be enough to last me for the rest of my life.
My brother suggested that I also look into annuities, which I know nothing about. Would that be a better idea than investing in mutual funds? I'm open to any advice that I can get. What does everyone think that I should do? Is there any way that I can quit my job and retire now?
I retired at 48. I did all the things that I wanted to do. About 5 years later, I was bored. I had to go get a meaningless job, just to keep occupied.
Money wasn't a problem, either. Not "contributing" was.
1. My advice is to keep your current job/house/car for a year
2.Meet with the Ed Jones guy to hear him out and then go find another advisor at a major firm. Go from there
3. I saw a mention of budgeting/tracking all spending, do it for at least the first year and you will be able to accurately asses your income needs vs assets
4. Do not over look the cost of healthcare as you age. You might not have had issues to this point but at 47 you have only been through most people’s cheapest part of the journey. Employer subsidized healthcare can save you a ton so maybe after doing #3 you can find a different employer/job since you have more flexibility and freedom
Is your Wellcare a Medicare Advantage Plan? If so, I'm surprised no one will accept it. You can drop them at any point in the year if you are unsatisfied. I did that with Humana which was horrible.
Will you choose Original Medicare with a supplement? The price is likely to go up $100-200 per month unless you gamble with no supplement and large copays.
I'm not sure if it's a Medicare plan. I do know of the two doctors in my area that will accept it, one isn't taking new patients and the other doesn't take my specific kind of Wellcare plan. And the next closest doctor is 70 miles away.
Are you talking about a gap plan? I may look into that but I have to get free of Wellcare first.
Quote:
Originally Posted by moguldreamer
Make that Medicaid.
Medicare. I get too much from Social Security for Medicaid.
Enough about me, guys. I want to know what the OP is going to do.
Really, 62 is early retirement (where you might lose that feeling of not contributing due to just not necessarily having the energy you have at 48).
LOL, make no mistake, I've been working full time the last few years. I don't really know why. Maybe it's a great feeling that I'm helping people, I guess. (Work at a hospital.) Nice to have health insurance paid for too. (That cost alone was approaching $1000 per month.) Do that for 10 years and you drop $120 grand.....that's an expensive flu shot.
LOL, make no mistake, I've been working full time the last few years. I don't really know why. Maybe it's a great feeling that I'm helping people, I guess. (Work at a hospital.) Nice to have health insurance paid for too. (That cost alone was approaching $1000 per month.) Do that for 10 years and you drop $120 grand.....that's an expensive flu shot.
I was out of work for four months. It was around 2003-2004. I was able to buy a catastrophic policy from State Farm ($50 per month for six months). Health insurance and healthcare are completely jacked up now.
Live your life normally for one year but track every nickel. Make a daily habit of writing all of your expenses into a spreadsheet. Housing, car, insurance, food, entertainment, everything. You might even do this for two years. Note separately all expenses related to work (commute, mostly) and exclude them.
Or. . . . if all of your household income/expenses funnel through your bank checking account(s), just port a year's worth of bank statements to a spreadsheet. Sort it all by expense category. Throw out what doesn't matter (e.g., deposits) and you are in the ballpark. Sure, you may lose some fidelity this way, for example if you use credit cards a lot and your work-related expenses (gas for commute, dry cleaning, etc.) are paid with credit card, but it will be erring on the side of conservative. Sure beats tracking every nickel for a year. This can be done in an hour or two.
I was out of work for four months. It was around 2003-2004. I was able to buy a catastrophic policy from State Farm ($50 per month for six months). Health insurance and healthcare are completely jacked up now.
ACA totally messed up catastrophic plans like that. I remember starting a job and you weren't allowed to sign up to health insurance for 6 months. I was able to buy catastrophic insurance and it was very inexpensive. It didn't cover everything, but it was there in case I got hit by a bus.
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You can drop them at any point in the year if you are unsatisfied. I did that with Humana which was horrible.
