Hi Bogleheads -
I've got a good problem to have -- more income than expected at this point in life.
I retired at age 55 (I'm 68 now) with a pension. All along, over the years, I knew that my ex-employer would reduce my pension when I reached Social Security Full Retirement Age. My understanding was that it would be reduced to the extent of my SS income. But that's not what happened. The reduction was about $12,000 annually (from 39K to 27K), while my SS benefit (which I started taking about 8 months ago) is around $38,000. Sweet! I feel like I got a big fat raise.
But I never really gave any thought to what I would do if I had extra income during retirement. I've been sticking it (pardon the expression![:)]( "Smile")
) in a money market fund, but I'm wondering what I should be doing with it.
Here's my current portfolio, all with Vanguard:
Taxable account:
Total bond index $15K
Total stock index $68K
Fed MM fund $35K
IRA:'
Total bond index $398K
Total stock index $85K
Roth IRA:
Total stock index $370K
That works out to Bonds 43%, Stocks 54%, and Cash 3%. Total portfolio of $971K.
Additional info:
Pension income $27K
Social Security $38K
Total income $65K
Annual expenses around $42-44K.
I own my house free & clear, current market value about $475K
I appreciate whatever advice y'all have. Let me know if additional info is needed.
I've got a good problem to have -- more income than expected at this point in life.
I retired at age 55 (I'm 68 now) with a pension. All along, over the years, I knew that my ex-employer would reduce my pension when I reached Social Security Full Retirement Age. My understanding was that it would be reduced to the extent of my SS income. But that's not what happened. The reduction was about $12,000 annually (from 39K to 27K), while my SS benefit (which I started taking about 8 months ago) is around $38,000. Sweet! I feel like I got a big fat raise.
But I never really gave any thought to what I would do if I had extra income during retirement. I've been sticking it (pardon the expression
) in a money market fund, but I'm wondering what I should be doing with it.Here's my current portfolio, all with Vanguard:
Taxable account:
Total bond index $15K
Total stock index $68K
Fed MM fund $35K
IRA:'
Total bond index $398K
Total stock index $85K
Roth IRA:
Total stock index $370K
That works out to Bonds 43%, Stocks 54%, and Cash 3%. Total portfolio of $971K.
Additional info:
Pension income $27K
Social Security $38K
Total income $65K
Annual expenses around $42-44K.
I own my house free & clear, current market value about $475K
I appreciate whatever advice y'all have. Let me know if additional info is needed.
Statistics: Posted by catdude — Sun Feb 25, 2024 10:51 pm — Replies 2 — Views 379