OK, I’m likely in a bit of financial trouble going into retirement so if anyone cares to provide advice on how best to improve my situation, I would appreciate it!
Emergency funds:
Yes, 6 months cash, ~$24,000 (Excluded from portfolio $)
Debt: $23,000 Auto Loan Balance @ 7.83%, $553/Mo.
Tax Filing Status: Single
Tax Rate: ~22% Federal, 0% State
State of Residence: FL or PA
Age: 70
Desired Asset allocation: 70% stocks (50% US / 20% INT) 30% bonds. Or as recommended.
I have been reading up on allocation and withdrawal schemes but I'm undecided.
Total portfolio: $230,000 That's the problem ;>(
Cash:
$84,000 37% cash (USAA bank)
Traditional IRA:
$78,000 34% Vanguard Fed Money Market Fund (VMFXX) (.11%)
Roth IRA at Vanguard
$68,000 30% Vanguard Fed Money Market Fund (VMFXX) (.11%) (incl. 2023 $7,500 contribution)
401k (Closed, 2024)
Jan 2024, rolled over employer $32K 401k, $14K match and $28K Roth 401k to Vanguard accts.
Did not convert any Traditional 401K to Roth (yet)
I contributed as much as I could to 401K Roth in 2023
Income
2024 $54,000 - $4,500 / Month Social Security (COLA accruals and max DRC’s incl.)
May consider adding other income but not factored into plan, yet.
Budget/Expenses:
2024 plan <$4,000 / month (still sorting it out)
Assumptions:
probably do not require any fund withdrawals from portfolio for 5-7 years except for IRS distribution requirements.
Guesstimate, annual portfolio return 4%, withdrawal rate 4%
Misc:
Suffered gaps in employment and investments losses during every downturn from 1980 to 2010.
2013 sold home not protected in BK and lived of proceeds for 5 years. Spent last 6 years banking OK salary and recovered from 2018 BK going from near $0 to about $300K total assets today. With low cost of living was able to save and rebuild funds before ending employment this New Years and will claim SS this month when I turn 70.
All 401k/IRA brokerage funds have been sitting on the sidelines in cash for several years.
Soon in 2024 I need to determine where I will live based on income/budget and if I will rent or purchase a home (portion of $84k cash available down payment. May use $20K to pay off car loan if makes sense)
Thank you for helping
PS
While not exactly recommended I am willing/interested in risking x% of portfolio in an upcoming individual stock after it's IPO sometime in 2024 possibly
Fanatics
Emergency funds:
Yes, 6 months cash, ~$24,000 (Excluded from portfolio $)
Debt: $23,000 Auto Loan Balance @ 7.83%, $553/Mo.
Tax Filing Status: Single
Tax Rate: ~22% Federal, 0% State
State of Residence: FL or PA
Age: 70
Desired Asset allocation: 70% stocks (50% US / 20% INT) 30% bonds. Or as recommended.
I have been reading up on allocation and withdrawal schemes but I'm undecided.
Total portfolio: $230,000 That's the problem ;>(
Cash:
$84,000 37% cash (USAA bank)
Traditional IRA:
$78,000 34% Vanguard Fed Money Market Fund (VMFXX) (.11%)
Roth IRA at Vanguard
$68,000 30% Vanguard Fed Money Market Fund (VMFXX) (.11%) (incl. 2023 $7,500 contribution)
401k (Closed, 2024)
Jan 2024, rolled over employer $32K 401k, $14K match and $28K Roth 401k to Vanguard accts.
Did not convert any Traditional 401K to Roth (yet)
I contributed as much as I could to 401K Roth in 2023
Income
2024 $54,000 - $4,500 / Month Social Security (COLA accruals and max DRC’s incl.)
May consider adding other income but not factored into plan, yet.
Budget/Expenses:
2024 plan <$4,000 / month (still sorting it out)
Assumptions:
probably do not require any fund withdrawals from portfolio for 5-7 years except for IRS distribution requirements.
Guesstimate, annual portfolio return 4%, withdrawal rate 4%
Misc:
Suffered gaps in employment and investments losses during every downturn from 1980 to 2010.
2013 sold home not protected in BK and lived of proceeds for 5 years. Spent last 6 years banking OK salary and recovered from 2018 BK going from near $0 to about $300K total assets today. With low cost of living was able to save and rebuild funds before ending employment this New Years and will claim SS this month when I turn 70.
All 401k/IRA brokerage funds have been sitting on the sidelines in cash for several years.
Soon in 2024 I need to determine where I will live based on income/budget and if I will rent or purchase a home (portion of $84k cash available down payment. May use $20K to pay off car loan if makes sense)
Thank you for helping
PS
While not exactly recommended I am willing/interested in risking x% of portfolio in an upcoming individual stock after it's IPO sometime in 2024 possibly
Fanatics
Statistics: Posted by Redbard — Sun Jan 14, 2024 3:36 pm — Replies 1 — Views 214