Posting on behalf of my mother - Thank you in advance for your help.
Based on what I've previously seen in posts asking for this type of help is lack of details, hopefully my mom provided enough of those - if she failed to mention critical information, please tell & I will promptly reply.
My husband unexpectedly died at the age of 61 two years ago. Shame on us, we never really took time to understand our own investments or the products we were sold many years ago. The accounts were set up & that was that... This has now left me lost and scurrying to understand all things personal finance and retirement hoping I am not to late.
For the past two years my son has been slowly attempting to help sort out my personal finances and help me understand the various investment accounts I currently have. That being said, I am now trying to make a financial plan to see if it will possible for me to comfortably retire within the next 6 years (Age 67 in late 2027) or get an estimation of when I eventually will be able to.
My son has me using You Need A Budget (YNAB) for the past 8 months to help me understand where my money needs to be and where it's going & plan for any true upcoming expenses. This has been helpful to track all my accounts.
I have no dependents and below is an overview of my finances as of this month (12/2021).
NETWORTH: $885k
- Checking: $10k
- Savings: $48k (0.40% APY)
- Retirement accounts: $588k
- Home estimated value: $280k
- Mortgage: -$50k
PERSONAL FINANCE BREAKDOWN:
- SAVINGS BREAKDOWN
- Emergency Fund: $14k (~5 month)
- Investment Fund: $7k (Ready to front load Roth IRA 01/2022)
- Estate Planning Fund: $2k (once retirement accounts are sorted - I would like to put together a Will and or Living Trust)
- Sinking Funds for upcoming: $27k (overhead sewers, fence, awnings, bathroom remodel, garage roof)
- INCOME MONTHLY
- $2,855 ($34,267/yr net)
- EXPENSES MONTHLY
- Average Expenses: $2,600 ($30k/yr)
- DEBT
- Mortgage: -$50k ($485mo | Interest Rate 2.875% | Maturity Date 10/01/2031)
- INVESTMENT ASSET BREAKDOWN
- VANGUARD - Roth IRA
- Open Date: 2021
- Portfolio Balance: $15,876.92
- Total Deposits: 14,000
- Asset Allocation: Vanguard Total Stock Market Index Fund (VTSAX)
- VANGUARD - Roth IRA
- WELLS FARGO - IRA
- Total contributions: ~~~~~
- Portfolio Balance: $103,312.83
- TALCOTT - 401(a) Qualified Plan
- Issue Date: 1994
- Total Deposits: ~~~~
- Accumulated Value: $115,991.10
- Cash Surrender Value: $115,991.10
- Cash Surrender Charge Amount: ~~~~
- JACKSON - IRA- Annuity
- Issue Date: 1997
- Total Deposits: $13,769.23
- Accumulated Value: $33,540.15
- Average Interest Rate: 3.00%
- Cash Surrender Value: $33,540.15
- Cash Surrender Charge Amount: $0.00
- Maturity/Income Date**:**12/03/2029
- LINCOLN - IRA - Variable Annuity
- Issue Date: 1994
- Total Deposits: $21,564.88
- Accumulated Value: $141,675.14
- Average Interest Rate: ~~~~
- Cash Surrender Value: $141,640.14
- Cash Surrender Charge Amount: $0.00
- WILCAC - Flexible Extended Annuity
- Contract Date: 05/03/1989
- Total Deposits: ~~~~
- Accumulated Value: $120,242.29
- Average Interest Rate: ~~~~
- Cash Surrender Value:
- Cash Surrender Charge Amount:
- TRANSAMERICA - HSA - Healthcare Funding Plan
- Plan Balance: $1,054.66
- Only $20 from my paycheck is deposited
- JPM - JPMorgan Chase & Co.
- Portfolio Balance: $5,703.55
-
- EMPLOYER PLAN - 457(b)
- Balance: $0.00
- Account has not been setup but eligible to make contributions via my employer.
GENERAL QUESTIONS
- FINANCIAL ADVISOR
- Should I seek advice from a fee only financial advisor?
- How does one find a trustworthy, fiduciary, fee only advisor?
- How much is reasonable to pay a fee only financial advisor?
- INVESTMENTS
- How would you simplify this investment portfolio?
- Would you open a IRA with Vangaurd and roll over Wells Fargo IRA, Talcott 401(a), Jackson IRA, Lincoln IRA?
- The Wilcac Annuity is not inside of an IRA so I presume it's not eligible for a rollover into an IRA - Would you cash out of the Wilcac Annuity?
- What type of account would you deposit the cash from Wilcac into?
- Is a 401(a) Qualified plan eligible for a direct rollover?
- Per my conversations with these companies - rolling over the annuities inside of IRA using a direct rollover should NOT impose any tax implications - How can I be sure of this?
- Assuming the direct IRA roll over & consolidation of retirements funds is an okay idea, does any one have recommendations on what investments may be wise considering my situation?
- is a target date fund my best bet?
- These accounts were setup 25+ years ago and haven't really been managed since. Not really even positive what the asset allocation is on these accounts or what they should be.. Do you have advice on how to decide asset allocation?
- JPM Stock $5,703.55 - Would you sell? What investment account would you deposit cash into?
- Would you begin to contribute to employer 457(b) plan?
- Considering a modest monthly pension and social security check, Is it possible using the 4% rule for me to retire in at least 6 years comfortably with out draining my retirement accounts in my life time?
- How would you simplify this investment portfolio?
- HEALTH CARE IN RETIREMENT
- Currently I am relatively health and take no medications.
- How should I plan for health care costs as I age?
- How to know if I will be able to afford Medicare in retirement?
- Is long term care insurance worth investing in?
- My mother died last year at 84 ultimately from becoming so weak after last several years of life in and out of hospital.
- My father is 87 and living independently
- MORTGAGE
- Will I be okay to retire with a mortgage?
- $485mo | Interest Rate 2.875% | Maturity Date 10/01/2031 | Will be age 71
- Estimated Balance on 07/2027 $22k - ideal retirement date
- If retiring with a mortgage is not recommended:
- Should I continue to work until 68 and use my S.S. Survivor benefit ($1700) at age 67 for about 9 months to pay down the rest of the mortgage to be 100% debt free?
- Should I continue to work until 68 and stock pile my monthly S.S. Survivor benefit ($1700) for a year ($20k) & make minimum mortgage payments until 2031 but build this savings into my emergency fund?
- Will I be okay to retire with a mortgage?
- ESTATE PLANNING?
- When should I setup a Will/Living Trust? I don't want my children to have to go to probate.
- Should I wait until after I consolidate my assets?
- Currently no form of Will.
- I want to simplify and consolidate retirement accounts
- The beneficiaries on my retirement accounts are all up to date.
- My mortgage/house and car are in my name.
- How do I know if i need a Will, Living Trust (Revocable or Irrevocable) or both Will and Living Trust?
- How much does getting a Will and Living Trust cost?
- How to find an Estate Planning Attorney who know how to help my children avoid probate?
- $55k Life Insurance policy provided by Employer (policy void upon departure from employment)
- When should I setup a Will/Living Trust? I don't want my children to have to go to probate.
Submitted December 01, 2021 at 03:15AM by btfftb https://ift.tt/3xEkxzu
