I would love some input. I feel I know enough to know that I don't know nearly enough! I think that I need to be aggressive in my investing, because I have little, and a little more of a little, is still a little ![:(]( "Sad")
These are my circumstances:
I am a 50 yr. old female, recently divorced (do not plan to remarry), starting from scratch, on my own. I'm not sure I will ever be able to retire, certainly not likely before 70/75? That said, I want to maximize any potential possibility that I actually could (but I don’t know how to project when that could possibly be). I expect to live to 85-95.
I have a friend that is a newer financial planner, who has given me some advice, but I am looking for more experienced minds to help guide me into determining what I should do, with what I have, to best grow it.
I live in Florida, no income tax.
Tax Filing: Single/Head of Household for the first time this year.
I work at my girls school as an educational aide (10 months of the year). I earn about $19/hr. I will probably earn about $25k, this year. I have about 60 college credit hours, but I do not have a degree, so am limited in my earning potential. I am a full time 24/7 single parent (3 grown kids plus 2 young kids at home, ages 9 & 11), I do not think I can manage returning to school at this time (time wise, or financially).
I will receive $1,750/mo. in alimony for 12 years. I will receive $962/mo. in child support for 6 years, which will change to $588/mo. for 3-4 more years.
I have a paid for 2023 Toyota Corolla.
I currently have:
$11k in my checking (I have all working and excess funds in my checking account, none in my savings account)
$20k in cash, in my safe, which I consider my emergency fund. (I have been advised to put it in Vanguard Federal Money Market Fund VMFXX), is this a good idea?
A condo with a remaining mortgage of about $97k. I am planning to put it on the market this spring, as the property is not well managed, and I should receive about $50k from the sale. (It should sell between $150k-$175k). I think I should invest this money, instead of repurchase another home, because I live on the gulf coast, and the stress of hurricane risk and costs of homeownership are large. I couldn't afford more than a fixer upper house here anyway, with my income, so I don't think that would be in my best financial interest? I think I should invest this in a brokerage account, I have been advised to put it all into VTI Vanguard Total Stock Market ETF. Is this a good idea?
I have no debt, besides the mortgage.
$6k in a Fidelity HSA, currently in a Money Market, thinking I should invest it? I can not contribute to this currently, because I do not participate in a High Deductible health plan.
$52k in a Roth IRA, in a Vanguard Target Retirement account > VTIVX VANGUARD TARGET RETIREMENT 2045 INVESTOR CL, expense ratio 0.08%). I am maxing my contribution (and will continue to max) annually at $8k/yr. I have been advised to move it to 100% VTI Vanguard Total Stock Market ETF. Is this a good idea?
$87k-$112k, my Dad wants to help me, and gave me my inheritance early, to help me as much as he can now. I just got $87k and will receive another $25k in about a month or so. I will not receive more. I have been advised to put it all in VTI-VANGUARD TOTAL STOCK MARKET ETF (expense ratio 0.03%). Is this a good idea?
Regarding future SS/Pension: My former husband was an IL state employee and paid into his pension program and was exempt from SS. I was a stay at home/homeschooling mom, for 27 years. Because he did not pay into SS, and because I did not work, I have very few quarters in SS (and those I do have, were for very little income). I am starting now, but I don't expect to receive much retirement income from SS?
The other significant caveat, is that while I was awarded 1/2 of my husbands pension (expected to be about $2k/mo. at retirement in approximately 12 years), if/when anything happens to him, I will get NO death benefit or continued distributions, it would/will end, and I would get no further pension payments. Normally I could file for a SS payment on him, but because he didn't pay in, I can not.
I just opened a 401k with my new employer, It is managed by Ascensus. I am maxing my investment at 15%, which is the most allowed. I will be vested in 6 years (vesting increase 20% each year, over 6 years). My employer has a match, up to 6%. However, they also have a match program that for year:
0-5 50% (so technically 3% employer contribution during this time?)
6-10 100%
11-15 150%
16-20 200%
20+ 250%
Not sure if this is common, but seems good? However, my annual income is so low that overall this contribution is still fairly small. I don't really know if I can stay here long term right now though. I may want to move to be closer to my grown kids. (I have 3 grown kids, and 2 small children, that reside with me full time).
I plan to invest 410k contributions in:
80%: iShares S&P 500 Index K (WFSPX)(expense ratio 0.03%) it is the lowest expense ratio fund
20%: Fidelity U.S. Bond Index Fund (FXNAX) (expense ratio 0.03%) the lowest expense ratio bond fund
Does this seem like a good idea?
I am financially conservative, not a big spender, track every penny I spend with YNAB software (and have for many years) and I want to save as much as possible, I'm super scared of my future, especially if something happens to my former husband and I do not receive any/enough of the pension payments. I feel I need to invest a bit more aggressively, which I feel is my only option, but would really be open to anyone’s thoughts or guidance here in determining how to invest/use any of the above, and how to best prepare myself, when I will not likely be able to meet the needed financial goals. Am I truly as bad off as I feel, or maybe it isn't as bleak as it seems? If/when I no longer receive former husbands pension. I would only have what I could earn working (about $25k-$30k/yr.), as I don't think my funds in investments above could support me very long.
Any input is appreciated, thank you!!
These are my circumstances:
I am a 50 yr. old female, recently divorced (do not plan to remarry), starting from scratch, on my own. I'm not sure I will ever be able to retire, certainly not likely before 70/75? That said, I want to maximize any potential possibility that I actually could (but I don’t know how to project when that could possibly be). I expect to live to 85-95.
I have a friend that is a newer financial planner, who has given me some advice, but I am looking for more experienced minds to help guide me into determining what I should do, with what I have, to best grow it.
I live in Florida, no income tax.
Tax Filing: Single/Head of Household for the first time this year.
I work at my girls school as an educational aide (10 months of the year). I earn about $19/hr. I will probably earn about $25k, this year. I have about 60 college credit hours, but I do not have a degree, so am limited in my earning potential. I am a full time 24/7 single parent (3 grown kids plus 2 young kids at home, ages 9 & 11), I do not think I can manage returning to school at this time (time wise, or financially).
I will receive $1,750/mo. in alimony for 12 years. I will receive $962/mo. in child support for 6 years, which will change to $588/mo. for 3-4 more years.
I have a paid for 2023 Toyota Corolla.
I currently have:
$11k in my checking (I have all working and excess funds in my checking account, none in my savings account)
$20k in cash, in my safe, which I consider my emergency fund. (I have been advised to put it in Vanguard Federal Money Market Fund VMFXX), is this a good idea?
A condo with a remaining mortgage of about $97k. I am planning to put it on the market this spring, as the property is not well managed, and I should receive about $50k from the sale. (It should sell between $150k-$175k). I think I should invest this money, instead of repurchase another home, because I live on the gulf coast, and the stress of hurricane risk and costs of homeownership are large. I couldn't afford more than a fixer upper house here anyway, with my income, so I don't think that would be in my best financial interest? I think I should invest this in a brokerage account, I have been advised to put it all into VTI Vanguard Total Stock Market ETF. Is this a good idea?
I have no debt, besides the mortgage.
$6k in a Fidelity HSA, currently in a Money Market, thinking I should invest it? I can not contribute to this currently, because I do not participate in a High Deductible health plan.
$52k in a Roth IRA, in a Vanguard Target Retirement account > VTIVX VANGUARD TARGET RETIREMENT 2045 INVESTOR CL, expense ratio 0.08%). I am maxing my contribution (and will continue to max) annually at $8k/yr. I have been advised to move it to 100% VTI Vanguard Total Stock Market ETF. Is this a good idea?
$87k-$112k, my Dad wants to help me, and gave me my inheritance early, to help me as much as he can now. I just got $87k and will receive another $25k in about a month or so. I will not receive more. I have been advised to put it all in VTI-VANGUARD TOTAL STOCK MARKET ETF (expense ratio 0.03%). Is this a good idea?
Regarding future SS/Pension: My former husband was an IL state employee and paid into his pension program and was exempt from SS. I was a stay at home/homeschooling mom, for 27 years. Because he did not pay into SS, and because I did not work, I have very few quarters in SS (and those I do have, were for very little income). I am starting now, but I don't expect to receive much retirement income from SS?
The other significant caveat, is that while I was awarded 1/2 of my husbands pension (expected to be about $2k/mo. at retirement in approximately 12 years), if/when anything happens to him, I will get NO death benefit or continued distributions, it would/will end, and I would get no further pension payments. Normally I could file for a SS payment on him, but because he didn't pay in, I can not.
I just opened a 401k with my new employer, It is managed by Ascensus. I am maxing my investment at 15%, which is the most allowed. I will be vested in 6 years (vesting increase 20% each year, over 6 years). My employer has a match, up to 6%. However, they also have a match program that for year:
0-5 50% (so technically 3% employer contribution during this time?)
6-10 100%
11-15 150%
16-20 200%
20+ 250%
Not sure if this is common, but seems good? However, my annual income is so low that overall this contribution is still fairly small. I don't really know if I can stay here long term right now though. I may want to move to be closer to my grown kids. (I have 3 grown kids, and 2 small children, that reside with me full time).
I plan to invest 410k contributions in:
80%: iShares S&P 500 Index K (WFSPX)(expense ratio 0.03%) it is the lowest expense ratio fund
20%: Fidelity U.S. Bond Index Fund (FXNAX) (expense ratio 0.03%) the lowest expense ratio bond fund
Does this seem like a good idea?
I am financially conservative, not a big spender, track every penny I spend with YNAB software (and have for many years) and I want to save as much as possible, I'm super scared of my future, especially if something happens to my former husband and I do not receive any/enough of the pension payments. I feel I need to invest a bit more aggressively, which I feel is my only option, but would really be open to anyone’s thoughts or guidance here in determining how to invest/use any of the above, and how to best prepare myself, when I will not likely be able to meet the needed financial goals. Am I truly as bad off as I feel, or maybe it isn't as bleak as it seems? If/when I no longer receive former husbands pension. I would only have what I could earn working (about $25k-$30k/yr.), as I don't think my funds in investments above could support me very long.
Any input is appreciated, thank you!!
Statistics: Posted by cdallas — Sat Jan 18, 2025 5:21 pm — Replies 0 — Views 50