Hello all:
So, I feel frozen as to what to do on my financial journey as nearing possible retirement. Husband and I are 54 and 55. We are considering a potential retirement in 2027. We work for a government office, and an election in the fall of 2026 will be determinative of whether we decide to continue working longer or retire. Upon retirement, we will both receive pensions that will replace roughly 75% or more of our income. We plan to opt for the pension benefit where we will each continue to receive the same monthly amount should one or the other predecease. We also have the option of each receiving a lump sum benefit, which would total around $300K, but reduce our total monthly benefits by about $1200. Here's the lowdown on our stats:
Emergency fund: Yes
Debts: Mtg with 2.25% rate refinanced for 15 yrs; paid in 2035.
Tax Filing Status: Married filing jointly.
Tax Rates: Fed - 22%; State - 4.25 %
State: LA
Ages: 55
Desire Asset Allocation: 60-70 stocks; 40-30 bonds. Some international - maybe 10?
Portfolio: $350K or so.
Current Retirement Assets:
My Rollover IRA with Vanguard:
Balanced Index Admiral (VBIAX), expense ratio .07; percentage of total funds in VBIAX is .06
Total International (VTIAX), Expense ratio .12; percentage of total funds in VTIAX is .06
Total Stock Market (VTSAX), Expense ratio .04; percentage of total funds in VTSAX is .31
Dividend Appreciation (VDADX), Expense ratio .08; percentage of total funds in VDADX is .11
CD at 5.45% matures Nov. 2024; percentage of total funds is .08
My Roth IRA with Vanguard:
Balanced Index (VBIAX), expense ratio .07
Total International (VTIAX), expense ratio .12
Total Stock Market (VTSAX), expense ratio .04
Wellington (VWENX), expense ratio .18; percentage of total funds in VWENX is .20
My 457 Deferred Comp with Nationwide:
Fidelity Contrafund, expense ratio .39; percentage of total funds .11
Fidelity Puritan, expense ratio .47; percentage of total funds .04
Fixed account, percentage of total funds .03
Most of the other options in the deferred comp plan have higher expenses, including the target date funds, and I am not looking at changing to other fund options in the 457 plan.
I contribute full amount to the Roth and only $6k to the deferred comp 457 plan. Husband has not opened any retirement accounts for himself. He has little interest in finance and expects to receive a pension benefit at or near his current income. Mine will be less due to different retirement systems I've been in over my career.
I am planning to have my husband open his own Roth rather than invest via a brokerage account. This would be in one of Vanguard's balanced accounts to keep things simple. I am looking for advice on what to do with my current accounts - whether and how to consolidate into fewer funds to get to a desired allocation of stocks and bonds that will allow for some continued growth. Anytime I consider making a move, I freeze and do nothing.
My plan / hope is that if we do retire in 2027, we will not have to dip into the retirement accounts then. I am trying to figure whether retirement will be realistic in 2027, if we indeed have to leave our jobs then.
Questions:
1. Should I transfer some of my Vanguard money into fewer funds and which ones? Should I consolidate funds in Wellington, Balanced Index or some other? I plan to continue to max out my Roth as long as possible.
2. Should I consult a financial advisor regarding the plan to retire in 2027 and how to handle future investments, tax issues, and disbursements?
3. Is retirement in 2027 realistic? I expect expenses will be roughly the same, unless we opt for the lump sum benefit and use it to pay off our mortgage. Right now, we live below our means and have been able to put additional monies each month into savings (emergency fund) in addition to what I have invested in retirement accounts.
Any insight and advice is appreciated. Thanks for your time.
So, I feel frozen as to what to do on my financial journey as nearing possible retirement. Husband and I are 54 and 55. We are considering a potential retirement in 2027. We work for a government office, and an election in the fall of 2026 will be determinative of whether we decide to continue working longer or retire. Upon retirement, we will both receive pensions that will replace roughly 75% or more of our income. We plan to opt for the pension benefit where we will each continue to receive the same monthly amount should one or the other predecease. We also have the option of each receiving a lump sum benefit, which would total around $300K, but reduce our total monthly benefits by about $1200. Here's the lowdown on our stats:
Emergency fund: Yes
Debts: Mtg with 2.25% rate refinanced for 15 yrs; paid in 2035.
Tax Filing Status: Married filing jointly.
Tax Rates: Fed - 22%; State - 4.25 %
State: LA
Ages: 55
Desire Asset Allocation: 60-70 stocks; 40-30 bonds. Some international - maybe 10?
Portfolio: $350K or so.
Current Retirement Assets:
My Rollover IRA with Vanguard:
Balanced Index Admiral (VBIAX), expense ratio .07; percentage of total funds in VBIAX is .06
Total International (VTIAX), Expense ratio .12; percentage of total funds in VTIAX is .06
Total Stock Market (VTSAX), Expense ratio .04; percentage of total funds in VTSAX is .31
Dividend Appreciation (VDADX), Expense ratio .08; percentage of total funds in VDADX is .11
CD at 5.45% matures Nov. 2024; percentage of total funds is .08
My Roth IRA with Vanguard:
Balanced Index (VBIAX), expense ratio .07
Total International (VTIAX), expense ratio .12
Total Stock Market (VTSAX), expense ratio .04
Wellington (VWENX), expense ratio .18; percentage of total funds in VWENX is .20
My 457 Deferred Comp with Nationwide:
Fidelity Contrafund, expense ratio .39; percentage of total funds .11
Fidelity Puritan, expense ratio .47; percentage of total funds .04
Fixed account, percentage of total funds .03
Most of the other options in the deferred comp plan have higher expenses, including the target date funds, and I am not looking at changing to other fund options in the 457 plan.
I contribute full amount to the Roth and only $6k to the deferred comp 457 plan. Husband has not opened any retirement accounts for himself. He has little interest in finance and expects to receive a pension benefit at or near his current income. Mine will be less due to different retirement systems I've been in over my career.
I am planning to have my husband open his own Roth rather than invest via a brokerage account. This would be in one of Vanguard's balanced accounts to keep things simple. I am looking for advice on what to do with my current accounts - whether and how to consolidate into fewer funds to get to a desired allocation of stocks and bonds that will allow for some continued growth. Anytime I consider making a move, I freeze and do nothing.
My plan / hope is that if we do retire in 2027, we will not have to dip into the retirement accounts then. I am trying to figure whether retirement will be realistic in 2027, if we indeed have to leave our jobs then.
Questions:
1. Should I transfer some of my Vanguard money into fewer funds and which ones? Should I consolidate funds in Wellington, Balanced Index or some other? I plan to continue to max out my Roth as long as possible.
2. Should I consult a financial advisor regarding the plan to retire in 2027 and how to handle future investments, tax issues, and disbursements?
3. Is retirement in 2027 realistic? I expect expenses will be roughly the same, unless we opt for the lump sum benefit and use it to pay off our mortgage. Right now, we live below our means and have been able to put additional monies each month into savings (emergency fund) in addition to what I have invested in retirement accounts.
Any insight and advice is appreciated. Thanks for your time.
Statistics: Posted by XKay — Fri Jul 26, 2024 6:06 pm — Replies 2 — Views 246