I'm helping my mother-in-law with her finances and would like to get a second look from forum folks to confirm this is a reasonable plan. My main question is around an appropriate allocation of her invested funds.
She is 72, single and in Colorado.
Income
Wages: She is semi-retired but still earns $10,000/year substitute teaching.
Social Security income: $44,000/year
Annuity income: $33,000. No COLA
Total current income: $87,000
Assets
Savings account: $50,000
Real Estate: $500,000 home, paid off
IRA: $565,000, recently rolled over from her 403B to Vanguard and needs to be invested.
Brokerage account: $0. Just opened an account at Vanguard to deposit RMDs starting next year.
Total assets: $1,115,000, plus the annuity.
Her income easily covers her expenses and taxes, so the plan is to let the IRA grow for now. She'd like to work as long as possible and is in good health. Eventually she will also need replace some of the annuity income as inflation takes it's toll. She also plans to use the invested funds for lumpy housing and transportation expenses, if/when they occur.
My main question is how to allocate the IRA and brokerage account. Given the annuity is sort of like a bond it seems she should be somewhat aggressive to balance that out. I am thinking something like 75/25. Does that make sense? Am I missing anything?
She is 72, single and in Colorado.
Income
Wages: She is semi-retired but still earns $10,000/year substitute teaching.
Social Security income: $44,000/year
Annuity income: $33,000. No COLA
Total current income: $87,000
Assets
Savings account: $50,000
Real Estate: $500,000 home, paid off
IRA: $565,000, recently rolled over from her 403B to Vanguard and needs to be invested.
Brokerage account: $0. Just opened an account at Vanguard to deposit RMDs starting next year.
Total assets: $1,115,000, plus the annuity.
Her income easily covers her expenses and taxes, so the plan is to let the IRA grow for now. She'd like to work as long as possible and is in good health. Eventually she will also need replace some of the annuity income as inflation takes it's toll. She also plans to use the invested funds for lumpy housing and transportation expenses, if/when they occur.
My main question is how to allocate the IRA and brokerage account. Given the annuity is sort of like a bond it seems she should be somewhat aggressive to balance that out. I am thinking something like 75/25. Does that make sense? Am I missing anything?
Statistics: Posted by LittletonRetire — Wed Aug 14, 2024 10:34 am — Replies 1 — Views 90