Plenty of money but what to do with it NOW? (Nice problem, I know)

by Dean
(Mount Juliet, TN)

Retirement Savings

My wife and I retired about a year and a half ago at ages 61 and 62. We've always lived beneath our means and that's probably why were able to retire early.

We fully funded 10 years of college for our 2 daughters and still managed to pay off the mortgage before we retired.

So here we are retired and living on Social Security with two nice sized, untouched IRAs. Our 401Ks suffered mightily back in 2008 and 2009 losing about half the principal in a very short time. We were totally blindsided and didn't know what to do so we did nothing. Over the next few years we made everything back and more. When we retired we rolled our 401Ks into IRAs.

I tried to learn what I could about mutual funds online and then picked out a half dozen funds that looked pretty good. I don't know if I was smart or lucky but since we retired those funds have done very well.

We now have enough money to last us for the next 30 years provided we can get a modest return like 5%. Unfortunately we don't have enough money that we could afford to lose a sizable portion.

With what I've been seeing in the news has made me fearful that there may be a very large quick downturn in the financial market. So, over the last few days I have moved all of our holdings into cash funds where they will earn virtually nothing but won't decrease either. At this stage we can better afford no gains for awhile as opposed to a possible huge loss.

My plan is to watch the market and if money becomes tight, QE has to stop (sometime?), then I expect to see CDs with higher interest rates. If that happens I would begin to purchase some CDs.

I hope the economy begins to stabilize sometime so I will have enough confidence to get back in the market. It would be nice to leave money to our kids and grandkids when we are gone.

I'd love to hear other people's money management stories in retirement. Hopefully I can learn a thing or two.

Comments for Plenty of money but what to do with it NOW? (Nice problem, I know)

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same problem
by: kdg

we are in the same boat, never really planned for retirement.... but at 56 (am just turning 60 now) I had a health scare so I retired and my wife shortly after, we did size our house down as we didn't need 3000 sq ft anymore ..not sure we ever really did.

we have lived a good life so far and owe not a dime, we now live comfortably on about 70,000 a yr with a good pad in the bank if we need to increase it over time and enough to last us for pretty much ever with out ever earning a penny on the money.

I've never had much use for brokers or even banks as I feel they look at you like your there next pay cheque , I had a small company most of my life and invested in myself. I do consider myself lucky to have made in through my working life still intact and to beable to retire... probably half determination and half luck... and never take this life for granted.

I have never wished for more money or wished I had won a lottery... if I needed more money I worked harder.

Life is too short. Live, Love, Laugh!
by: Don D

I also retired at the age of 61 now 73. I base all my financials on living till 86. I take into account retirement pensions, etc.

Not to enjoy some of your hard earned money is a waste. Who is going to enjoy your hard work if you and your wife don't take advantage.

I have watched to many families save and save for retirement than someone gets sick and what good was all that savings. I believe you have to spend some and save some.

Enjoy each day.

What to do with it
by: Anonymous

I am in a similar situation, good planning, long term planning, budget, discipline all helped.

Many of us find our children don't need an estate, so the money is ours, yet we don't want to spend it. I don't believe that we are the exception, most people are quiet savers. I also don't believe in disaster scenes, if you believe in yourself and trust your own judgment you will be fine.

Just be sure you and your wife both know how to do the financials in case one of you gets sick. Be sure passwords and bank cards are accessible to both and to a trusted emergency contact person.

As we age trips are uncomfortable, painful physically, and property is difficult to manage unless we hire someone reliable. The more we can stay physically strong the better.

Perhaps learning something new, like using the internet, playing computer games, building up hobbies are things we'd like to do. Time spent in active exercise is good.

Best wishes in the new financial seniors world!

One Smart Cookie
by: Carol

Dean. You are one smart cookie. You and your wife seem to have the understanding of money management under control so to me that's not your problem.

I think from what I am hearing is what all of us are worried about and that how do I make sure I out live my money.

You sir do not seem to have that problem as so many of others are chewing their nails hoping they did enough planning. You seem to have a talent for discipline.

That is the message I think you need to help others with on this site how ever it may apply. We are always in need of guidance from those who "know, been there, done that".

Other than that personally I would teach my children same and let them make it on their own as you did. Problem solved.

Go travel by a motor home visit the USA. Sure u can help your kids IF they need it but what message do you really want them to get to learn from?

Good luck and ENJOY your freedom while we still have it.

Investing
by: Ricardo

Dean, asset allocation & diversity are the "key" ingredient to solid investing.

Going in and out of the market NEVER works....no one can ever "time" the market not even the so called "pros."

Find a good low cost balanced index fund and index fund or funds and stick with that program.....

In the long run you will do ok.....I prefer Vanguard....it's one of the best.....good luck with your investing....and remember...."knowledge is power."

Learn as much as you can and research ALL investments prior to making a move!

good for u 2
by: Anonymous

l wish l had your problems !!!

go on a trip, have some fun, make some memories - because in the end your memories will be there.

TOO MUCH MONEY
by: Sheila

You are in a very enviable financial position, and so are your daughters, with their college years paid for and with seemingly no effort on their part.

But this is not a good forum in which to vaunt your money concerns. According to news sources, most seniors are worried about not having enough money for day-to-day expenses. Reading a story like yours only emphasizes their own lack, due to either poor planning or plain old bad luck.

Anyway, I hope your abundance of cash is in a fire- and bomb-proof safe somewhere close by. You can't trust even banks these days.

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