I need some retirement advise
Situation: Retiring at age 65 in 2 months (August 2018)
-Quitting work in August this year, made $40,000 after working there for 20 years
SAVINGS:
- $175,000 in 401K (90% in stocks, 10% in bonds)
*American AMCAP R4 25%
*Fid Mid Cap idx PR 25%
* MIP CL 1 25%
* Pnr Sel Md Cp Gr Y 25%
-$105,000 in IRA with Vanguard Target Retirement 2025
-$8,000 in cash/emergency fund
ASSETS:
- mortgage free on current home in SC (worth $180,000)
-Taxes currently $1100 yr, will drop to about $700 yr after age 65, Insurance about 800 yr
- own 1 car (2006 Honda Accord 120,000 miles) no payments
- own 1 truck (2006 Honda Ridgeline 140,000 miles) no payments
- own a small travel trailer RV worth about $5000, no payments
- own a small bass boat worth about $4000, no payments|
pay off credit card in full each month
DEBT:
$40,000 equity line at 4.74% (for expenses when we sold our previous house and bought this house at a foreclosure auction for $98,000. This house is currently worth $180,000 but it needed some repairs which we did with the equity line. We still have $30,000 available)
- Health insurance:
- Medicare and BCBS supplement $234/mo
- Obama Care high deductible for wife 0/month (max out of pocket is $6500) She is healthy but has severe anxiety issues which make it hard to work.
INCOME:
- $1574 month from Social Security for husband,
- next year $560 Social Security from wife when she turns 62.
Will be looking for part time work after retirement, but my current job is 200 miles from our new home and staying there is not an option. Have been renting a room and living away from home for the past 2 years until I turn 65 and qualify for Medicare. It has been a strain and we need to both live in the same house again. New home is in a fairly remote area and decent jobs are a long commute of over an hour. It is getting hard to see at night, so I need a job close to home. We will mostly be surviving on Social Security and our savings.
We need to preserve our savings because we will need some of that each year to pay major expenses such as taxes, insurance, repairs, and major bills. We anticipate taking about $10,000 per year from our savings for expenses. Our kids have good jobs and have said they will take care of us in our old age, but we no not want to ask for help unless we are destitute.
Our new home is in a nice active retirement community on a large quiet lake in rural South Carolina. There is plenty to do here that is not expensive and does not require much travel (fishing, clubs, rec center with pools and fitness, golf, etc). Cost of living here is pretty low, so our monthly expenses are very affordable with just Social Security.
Questons:
-Where would you suggest we put the $175,000 to minimize risk, but still have some growth as we could really use the extra? We are concerned about the possibility of another stock crash like the last one, which would be a serious problem for us.
-Should we consider a reverse mortgage to pay off the equity line? We are currently paying just interest only (about $160/mo).
-What other suggestions might you have to make our retirement more comfortable?
Thanks for any help!
Submitted June 11, 2018 at 09:29AM by CuriousCatte https://ift.tt/2sXjFFi
