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Retirement Discussions / Retired Fools
|Subject: Re: Managing retirement savings?||Date: 3/19/2013 9:40 PM|
|Author: telegraph||Number: 18289 of 20240|
"I am 60 years old and retired for several years from a state job. I am living off a small pension of $32,000."
Heck, $32K isn't a small pension. tens of millions would love to have that income.
" When the stock market crashed in 2008 I moved my 457 plan of $80,000 from the stock market to their stable income fund. "
And you lost out on a 40% increase in the market.
But at least you slept better
"I also have $70,000 in an ING savings account and 30,000 in local banks. "
I'd keep a 6 to 8 month emergency fund in a savings account paying 0.1 % these days
and invest the other
"I am wondering what is the best way to have my $180,000 in life savings grow being that I am very risk averse."
Well, if you are 60, your life expectancy is at least another 25 years and you need to plan accordingly.
"I am considering moving the 457 plan money to a whole term life insurance policy "
Horrors!...you don't need life insurance at this point in your life. It's a gigantic rip off and you don't need the 'tax advantage' of it. It will make your 'financial planner' a boatload of money. He likely gets about a 5% commission on all you invest..which is money you never get back. NO NO NO NO
YOu are getting BAD BAD financial advice
"and moving the money from the savings account to gold."
Wow...and you worried about a drop in the stock market? What if gold went to $800/oz?
No one should have more than 10% of their savings in gold.
" Are these smart decisions?"
No no no no no.....a thousand times no. Run from anyone trying to sell you whole life insurance at age 60. QUickly. Fast. Run even faster if they start talking variable annuities, or 'guaranteed income' contracts with wraps containing funds with stock. They'll make the money in commissions and fees, and you you'll get the scraps!
" What do you think is my best course of action? "
You'll be making your financial adviser quite happy if you follow your suggested advice. You, on the other hand, will be taken for a ride.
It sounds like you should stick with your stable value funds.
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