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I am reaching my retirement time and wanted to build portfolio for post retirement income.
I understand that annuities may not be a good way to invest.



I was fascinated reading your situation. Sounds like deja vue all over again. I was in that situation a little over 30 years ago. Not quite as much savings as you, but the same need exactly. $5000 a month, $60,000 a year. God willing and the creek don't rise, we will make it. The doctor told me at my annual check up a couple months ago that I could possibly be around another 10 years. My biggest concern now is if we need assisted living at some point. That is really expensive.

The advice you just got was excellent. I agree completely with everything he said. Definitely no annuities. I started with 5 years ($300,0000) in cash and never let it go below 3 years cash. I was fortunate that I retired in a high interest rate time. I split investments between bonds (mostly strips with up to 12%) and stocks. I hope you are already knowledgeable about investing. I had to start learning, and I still had one kid left to raise so I spent a lot of time enjoying family and retirement. After about 10 years I had to turn investing into a full time job. Fortunately, I enjoy it because I spend a lot of time at it.

I assume you will get social security at some time. You really need to study that to make the best long term decision. The social security office was no help to me on that. You don't say if you are married, but if you are, you need to wait as long as you can for whichever of you will get the highest payment. It keeps going up until that person is 70 years old so don't go past that. When one of you passes, the survivor keeps getting that payment with COLA the rest of their life. For the lower payment you can start it early or wait until normal retirement age depending on your financial needs. Sounds like the odds are that one of you will live past 85 and that is when this can really be important. If you pass before your wife, it can be vital for her.

If you own a house or property , you need to evaluate the future value. I am in Florida and everything goes up here, and there is a law that the property tax can only go up with the appraisal but never above 3% a year. Called Save Our Homes Act. I consider our house a savings account. I can take a loan on it or sell it if we need to go smaller or assisted living.

If you are not comfortable investing, you may need to get a financial advisor. Just be sure you get a fiduciary if you go this route. I suspect there are local people around you who are competent. Try to get as much information as you can before you start talking to them. Just remember that every one % they charge is one percent off your earnings so cost is important. You are in a really good place at the Motley Fool to get help if you decide to try it on your own. They also have a money management group. I know nothing about them, but assume they would be similar to what you see in their various services.


Sorry so long. I just keep thinking. Invest as much as you possibly can before you retire. Put as much as you possibly can in a Roth IRA. That is one of the few things the government has done for retired people. It can save you a fortune in taxes. If you have traditional IRA, transfer it a little at a time consistent with minimizing the taxes you pay. When you need to take money from your IRA take it first from the traditional IRA until it costs you in taxes. Then go to non retirement accounts. Ideally you want to run out of money in the traditional IRA first, then take money from non retirement and Roth IRA in the best way for your personal situation.

Sorry I was so long. If I think of anything else, I will come here and post it.
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