Search found 6 matches

by enret
Fri May 17, 2013 11:40 pm
Forum: Personal Investments
Topic: to invest now or wait?
Replies: 27
Views: 5273

Re: to invest now or wait?

The Wizard wrote:More importantly, enret, what is your Asset Allocation?
Retired folks aren't usually more than 50% in equities.
What will you put the non-equity $$$ into? Bonds or CDs?

Thanks for your answers.
I plan 40% in stock index, 10% Vanguard fund dividend appreciation, 50% bonds.
I allocated 50% of planned bonds, but stuck with equities, don't have a nerve :-)
probably should do in smaller parts on schedule. I never had to deal with significant amount in one shot.

enret
by enret
Fri May 17, 2013 3:09 pm
Forum: Personal Investments
Topic: to invest now or wait?
Replies: 27
Views: 5273

to invest now or wait?

Hello,
I just retired, and at mid April was in the process of moving money from 401K to Vanguard, with plans to invest in Index funds. the transfer was as cash. Market started to run up and I waited and waited for the right time to buy Index Stock fund and now it is really scary to buy into stock market. Or it is not?
I understand I should not try to time the market, but it run crazy up for so long, it is scary. :-)
what should I do now?
Confused.
by enret
Tue May 07, 2013 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: lumpsum/pension/non-qual annuity??
Replies: 14
Views: 1898

Re: lumpsum/pension/non-qual annuity??

Al, Bill,
thanks for explanation. I did not even know that SS is not fully taxed.
JW Nearly Retired wrote: Having a lot of income so you need to pay considerable taxes at age 70 is a good problem to have.
JW
JW - yes, that's what my husband says. :-)
by enret
Tue May 07, 2013 12:28 am
Forum: Personal Finance (Not Investing)
Topic: lumpsum/pension/non-qual annuity??
Replies: 14
Views: 1898

Re: lumpsum/pension/non-qual annuity??

Thank you all for your advice, suggestions and for sharing your stories. I followed all the recommendations, compared pension conditions with annuity market and decided to take company pension. My SS is postponed for now, at least while my husband is still working. Later our SS's and pensions should provide for most of our immediate needs, and this at least will make me sleep better. and taxes, oh well, no escape I guess. Regarding the suggestion to do conversion of regular IRA to Roth IRA (by Al and Sworn) I do not understand the value of it. If I had new money coming I would use Roth, but to convert existing IRA would generate huge taxes, why to do it now? RMD will spread those taxes over many years. What I am missing here? again, thank y...
by enret
Fri May 03, 2013 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: lumpsum/pension/non-qual annuity??
Replies: 14
Views: 1898

Re: lumpsum/pension/non-qual annuity??

Thank you for your replies.

Al,
details about our financial situation:
between two of us we have about $1M in 401K plans, and $350K in savings after tax.
SS for both of us total 60K, no debts, mortgage paid off. I am 66, my husband 67.

the question we consider - does it make sense to try to reduce our future taxes by replacing
pension with annuity paid with 'after tax money' ?

Elena
by enret
Fri May 03, 2013 11:32 am
Forum: Personal Finance (Not Investing)
Topic: lumpsum/pension/non-qual annuity??
Replies: 14
Views: 1898

lumpsum/pension/non-qual annuity??

Hello, My name is Elena, I am new to this site and I am impressed with the knowledge people display here. I appreciate your advice. I am 66, just retired. I have a pension from the company, which I can take as lump sum. $376K as lump sum or $2100 monthly with 50% survival rate for my husband. it is about 6.5% payout. My husband is working part time, maybe for another year, he is 67. we both have 401K . I am leaning to take pension, for safety. However looking ahead, we realize we will have considerable taxes starting at 70, with RMD from both 401K. we currently have 300K in after tax savings. We just wonder maybe we should take my pension as lump sum, add to IRA account, and buy annuity with after tax money ? Does it make sense? I understan...