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No. of Recommendations: 1
I'll start off by saying I'm horrible with money but learning how to invest. The one advisor I hired was a joke and I got rid of him. I don't have any retirement income. I recently sold my house and have 370,000 sitting in savings accounts. I'm debt free. The plan was to buy another house but we found a rental on the beach that we love. The rent is $1450 and includes everything internet,cabel, electric, fule, lawn care... We want to stay here for at least a few years, maybe forever. I have about 90,000 in the market. I have Roth IRAs set up and fund them each year. I own part of a shopping center that's in forclosure and should recevie another $400,000 from that. We're still working part time. Enough to cover our bills. I'm 59 husband is 62. I don't know what to do with the money sitting in the bank accounts. I'm frozen, afraid I'll make the wrong decision. I can't afford to lose it but I know letting it sit is a bad idea. I'm looking for someone to point me in the right direction. I don't know where to start. Thanks in advance
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No. of Recommendations: 7
It sounds from your description like you are getting ready to retire soon and are looking for assistance in managing your savings to provide long term reliable income over retirement years. If so, you need a plan, to include how to cover your forward household expenses, the best time to begin social security benefits, transitioning to Medicare at 65 and future years household income adjusted each year for inflation. A couple of other factors I'd suggest is because it sounds like much of your retirement savings is in taxable accounts (as opposed to IRAs or employer retirement plans), you'll also need to make sure you have adequate liability insurance on home and auto, as a major claim could deplete your taxable savings.

I'd suggest one of two approaches to getting this kind of information.

1. Go to https://www.garrettplanningnetwork.com/ and look for a fee-only financial planner near you. These planners will hold the CFP designation and most charge by the hour for their service. It'll cost you probably $2,000 to $3,000 for a comprehensive plan that will look at household cash flows, investment management, withdrawal rates over future years that integrate with Social Security, household risk management and setting up your estate to ensure ease of management should one or both of you get sick or die unexpectedly. The key here is this relationship is the least conflicted of any FP services. The drawback is these people tend to be very busy as demand for them is high, so be prepared to wait.

2. Go to www.napfa.org and find a fee-only CFP or CPA/PFS near you. Same form of comprehensive plan but this group typically is paid by charging your investments a fixed annual fee, usually .5% to 1% per year of 'assets under management'. Unlike the one-time hourly charge, this fee is charged each year, but it is free of commissioned financial products...something you'd want to avoid.

If you think you'd be comfortable self-managing once a plan is set up for you, I'd recommend #1. If you wish someone else to do the leg work and make recommendations, I'd suggest #2.

BruceM
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No. of Recommendations: 3
I'm really sorry that I bought individual stocks in the past.Sometimes I hit it out of the park,& other times I really bombed.

I would have done much better if I had just put the money into the Total Stock market fund with minimal expenses & no longer dealing with a broker who liked to churn the account.
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No. of Recommendations: 2
Well,

A challenging position. However, when I look at your situation, I see the following:

- Your part time jobs cover your bills. That is a very big deal since it allows you to do something with your assets. Given your ages, you should research what your social security benefits will be. Your time horizon for working might be age 66.

- Since your PT jobs pay the bills, I might be persuaded to put the entire 860K ($90K, $370, $400K) into an S&P500 Index fund. If that is too big an emotional risk, go 50-50 with a short term investment grade account. Be prepared for some blips. Yet, over the long run, it will generate 5-6% per year, so $40K plus whatever your earned income and/or social security is.

I get the risk emotion. Somehow you have to forget about the day-to-day and look forward 5-10 years. That will make a big difference.

Living where you love it and having income to cover gives you options many don't have.

Best
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No. of Recommendations: 1
Mutual funds and etfs are a good place to begin. An S&P 500 Index fund such as Vanguards 500 Index Fund (ticker VFINX) or SPY the equivalent etf or VTI as a total market etf.

With the markets setting new highs almost every day, now is a worrisome time to invest. We don't expect a major downshift any time soon but they do happen.

One way to spread the risk is to invest in thirds. Decide what you want to buy. Then invest one third at a time at a reasonable interval, say once a month.
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No. of Recommendations: 1
Yeah I think we’re all on the same page here with “put it into an index fund and forget it “

My nephew had a tax question or two recently with stock options and he found a fee only planner for $300/month no contract and he really liked the guy. No commission no sales - open your own brokerage at Fidelity or Vanguard or wherever. They don’t touch the money just advice. Sounds good to me.

Here’s that guy:

https://www.lifepointplanning.com/

Doug Oosterhart. My nephew is a pretty savvy investor (boglehead style) and yeah I plan to call the guy when I get closer. Just one month and fire him would be cheaper than most of them.

But yeah. Index. VTI (vanguard total market)
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No. of Recommendations: 0
These are all excellent suggestions. You also might look at your circle of friends. Ask them who they use for financial assistance. Are they happy with the service provided? How’s the cost? How has the advisor done during up and down markets? Do they trust the advisor?
Interview the ones that sound like they might be good. Then after all that come back here and review these suggestions. How the advisor charges vary and the most expensive ones charge a percent plus they want you to use a specific broker so they can capture the transaction fees too. FYI I’m not a huge fan of Vanguard funds. HTH…doc
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No. of Recommendations: 1
Yep for advisors keep a keen eye on fees. They’re salesmen.

Also note that you do not have to give any advisor ALL of your money. I’ve been yelled at here before for suggesting this but maybe give them 10% and invest the rest yourself following their advice. In low cost indexes most likely.

If that’s “unfair” they can transition to fee only. Your money your decision. My advisor knows I do this and she is happy to get the 10% which is well into 6 figures…
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No. of Recommendations: 10
I’m 84 and have been taking minimum required distributions from my IRA for 14 years. The percentage i withdraw increases every year and at my age it’s significant. You would think that the balance would have dropped a lot by now. I’m 1/2 in income funds and 1/2 in a total market stock fund. Some years the balance goes down, and some years it goes up. Surprisingly, it’s greater now than when I was 70!

Trini
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No. of Recommendations: 3
" I’m 84 and have been taking minimum required distributions from my IRA for 14 years. The percentage i withdraw increases every year and at my age it’s significant. You would think that the balance would have dropped a lot by now. I’m 1/2 in income funds and 1/2 in a total market stock fund. Some years the balance goes down, and some years it goes up. Surprisingly, it’s greater now than when I was 70!

Trini "

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You are to be congratulated!

Howie52
I believe that is called a successful retirement.
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No. of Recommendations: 2
"I'll start off by saying I'm horrible with money but learning how to invest. The one advisor I hired was a joke and I got rid of him. I don't have any retirement income. I recently sold my house and have 370,000 sitting in savings accounts. I'm debt free. The plan was to buy another house but we found a rental on the beach that we love. The rent is $1450 and includes everything internet,cabel, electric, fule, lawn care... We want to stay here for at least a few years, maybe forever. I have about 90,000 in the market. I have Roth IRAs set up and fund them each year. I own part of a shopping center that's in forclosure and should recevie another $400,000 from that. We're still working part time. Enough to cover our bills. I'm 59 husband is 62. I don't know what to do with the money sitting in the bank accounts. I'm frozen, afraid I'll make the wrong decision. I can't afford to lose it but I know letting it sit is a bad idea. I'm looking for someone to point me in the right direction. I don't know where to start. Thanks in advance "

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Seems that you are confusing waiting to figure out what you really want to do with doing
something wrong.
Folks should never feel that they have to make an immediate decision about investments. Trying to
investigate what options are open to you seems to be exactly what you should be doing. You are
not going to miss out on some magic jump in market values by waiting to understand what you
really wish to accomplish and figure out a way to achieve your goals.

Howie52
Goals first - plan second - then act as needed.
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No. of Recommendations: 0
If my IRA investments grow by 10% per year, my calcs indicate my account value will continue to increase in spite of increasing RMDs until age 88.
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If my IRA investments grow by 10% per year, my calcs indicate my account value will continue to increase in spite of increasing RMDs until age 88.

Not impressed. RMD doesn't reach 10% until age 93.
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I've planned on a target of 75 for me to evaluated my then remaining assets & (no children) start more charity donations.

I figure there are less remaining years to fund by then.
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RMD doesn't reach 10% until age 93.

The difference is due to the net of 10% after payment of the RMD. The RMD is not optional and cannot be replaced.

Effectively the RMD compounds just as compound interest does.
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No. of Recommendations: 1
My traditional IRA CAGR (net of fees, RMD, and QCD) is 13.1% over the last 9 years. Assuming that remains constant in the future, my IRA will continue to increase in value until age 98 when RMD increases to 13.7%.
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I can only say what I've done with success. I hired a financial advisor who charges me a quarterly fee of .05% which is usually low, but I insisted.

Other than some ETF's, all my investment bear dividends and are individual conservative stocks. He has done very very well for me.

Unfortunately, the interest rates on CD's and Bonds are currently not worth the bother.

You need to get some recommendations from friends.....

Birgit
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No. of Recommendations: 1
I’m 84 and have been taking minimum required distributions from my IRA for 14 years. The percentage i withdraw increases every year and at my age it’s significant. You would think that the balance would have dropped a lot by now. I’m 1/2 in income funds and 1/2 in a total market stock fund. Some years the balance goes down, and some years it goes up. Surprisingly, it’s greater now than when I was 70!


Hi Trini! I'm 85 and can say the same. The RMD distribution is now so large my CPA had me make a large charitable contribution to keep my income from being decimated by income taxes. My IRA keeps gaining in value. Not complaining about that!!

Hope you are doing well, my friend.

Birgit
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