Already retired still need to plan

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SJM
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Already retired still need to plan

Post by SJM » Tue Aug 21, 2018 5:47 pm

Most of what appears to be available in the way of advice regards preparing for retirement.
That is now 15 years in my rear view mirror, but there should be (sez the IRS) another 23 years to go.
Is there a strategy for handling investments post retirement?
Well that was dumb, but what I mean is is there a place/way to research from the particular perspective?
I really don't (anymore) need to know how to get to this point.

Susan

mhalley
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Re: Already retired still need to plan

Post by mhalley » Tue Aug 21, 2018 7:52 pm

You might start with Jane Bryant Quinn's book.
https://www.amazon.com/gp/product/14767 ... bl_vppi_i0
Otherwise, you need to figure out your asset allocation, glide path, where to withdraw funds from first, whether you want to do roth conversions, when to take ss, etc.
You might try running some figures at i-orp.
https://www.i-orp.com/aftxcost/extended.html
If you have some specific questions, we could give better answers.

SJM
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Re: Already retired still need to plan

Post by SJM » Tue Aug 21, 2018 8:06 pm

Okay. Thank you.
I will start with those two links and see what I already know and what I need to ask.

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dwickenh
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Re: Already retired still need to plan

Post by dwickenh » Tue Aug 21, 2018 9:13 pm

I also recommend Jane Bryant Quinn's book as it answers many of the questions concerning decisions while already retired. It is insightful
without being too complicated.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

SJM
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Re: Already retired still need to plan

Post by SJM » Tue Aug 21, 2018 9:49 pm

My library has the Jane Bryant Quinn and I've put in a request.
Thank you both for that recommendation.

megabad
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Re: Already retired still need to plan

Post by megabad » Wed Aug 22, 2018 2:34 pm

The portfolio bucket thought process works for me for all periods of life. There are many threads on this method here and articles in several investing journals. The Christine Benz article here discusses it as well https://www.aaii.com/journal/article/fo ... he-details. It is not a prescriptive allocation but just a thought process though, so there is nothing special about it over any other method of determining asset allocation (theoretically all methods should result in same asset allocation based on your personal preferences).

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 3:02 pm

Aha.....a three bucket list :D
Thanks for that.

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Raybo
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Re: Already retired still need to plan

Post by Raybo » Wed Aug 22, 2018 3:14 pm

How you invest will be determined by what you are investing for. Do you have enough money for the next 23 years? Do your investments need to provide income for you? Are you hoping to leave a legacy?

If you have way more than enough to finish out your life and don't want to leave a legacy then you might not have to invest at all. In this situation, a bit of money in stocks (say 10%-20%) and the rest can be in TIPS (inflation adjusted bonds), nominal bonds and/or other very safe investments.

If you need to earn money on your investments to fund the rest of your retirement, then you need to decide how much return you need, which will drive what kind of investments would be appropriate.

A bit more information would help.
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.

bradpevans
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Re: Already retired still need to plan

Post by bradpevans » Wed Aug 22, 2018 3:18 pm

SJM wrote:
Tue Aug 21, 2018 5:47 pm
Most of what appears to be available in the way of advice regards preparing for retirement.
That is now 15 years in my rear view mirror, but there should be (sez the IRS) another 23 years to go.
Is there a strategy for handling investments post retirement?
Well that was dumb, but what I mean is is there a place/way to research from the particular perspective?
I really don't (anymore) need to know how to get to this point.

Susan
For all the posts on AA, portfolios, pay down mortgage or not, there is an absolute dearth of info
on the topic of "What accounts to draw from when"? The tools and strategies to accumulate are NOT
the right ones for drawing down.

This article has some scenarios: https://www.kitces.com/blog/tax-efficie ... ing-needs/

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 3:48 pm

I am quite sure I have enough until/unless I need to be 'taken care of' in which case it seems to me all bets are off.

Okay, here are some of the specifics.
I'm 74 and need only provide for myself.
I own my house free and clear.
I own and rent out a condo in a neighboring town. The condo is paid off.
15 years ago I sold a business and will be receiving interest and principal for another 5 years.

All my investment accounts are at Fidelity:
Small Roth (low 5 figures in FLSPX (Fidelity Low Priced Stock))
Traditional IRA (mid 6 figures in BEGRX (Franklin Mutual Beacon,FLSPX,HRTVX (Heartland Value),RYSEX (Royce Special Equity))
Non IRA (high 6 figures mostly in FCNTX (Fidelity Contra Fund), some in FDCAX(Fidelity Capital Appreciation),FLPSX)

A Fidelity Advisor recently suggested I sell all my FCNTX (cap gains would have been $25K) and put all my $$ into Fidelity Preferred Accounts).
I declined.
When I did just now take my RMD I used to funds to open FSTVX (Fidelity Market Index Premium) with what I had to withdraw.

I pay a lot of taxes between the sale of the business and the success of FCNTX, but somehow I'm not at all sure that I think selling FCNTX is the answer. I've had it for at least 30 years.
Last edited by SJM on Wed Aug 22, 2018 4:51 pm, edited 1 time in total.

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Sheepdog
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Re: Already retired still need to plan

Post by Sheepdog » Wed Aug 22, 2018 4:23 pm

SJM, it really helps Bogleheads to write out the description for your investments because it takes so much time to look them up. You are likely to get more responses because of that.
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

dogagility
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Re: Already retired still need to plan

Post by dogagility » Wed Aug 22, 2018 4:36 pm

SJM wrote:
Wed Aug 22, 2018 3:48 pm
A Fidelity Advisor recently suggested...
Are you paying this advisor an AUM (Assets Under Management fee)? This is something typically frowned upon on this forum, but can be beneficial in specific cases.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 4:43 pm

Nope. He's just the guy whose name shows up at the top of my statements. Not paying him (or anyone) anything.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 4:44 pm

Sheepdog wrote:
Wed Aug 22, 2018 4:23 pm
SJM, it really helps Bogleheads to write out the description for your investments because it takes so much time to look them up. You are likely to get more responses because of that.
As in the full name rather than the ticker? Sorry.
I will go back and edit my entry after I take a dog to the vet. :oops:

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Raybo
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Re: Already retired still need to plan

Post by Raybo » Wed Aug 22, 2018 4:46 pm

Now that you've listed your investments (with fund symbols I don't know or want to look up), can you summarize what your Asset Allocation is?

Also, since you are simply investing your RMD, do you have enough income to cover your expenses without spending any of the RMD?

What do you mean by "being taken care of"?
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 4:55 pm

Sorry about the ticker symbols. I fixed that.

Asset allocation? LOL. All full bore risky stock funds, but all damn decent picks IMHO.

Need to be taken care of? What's to understand? Both my parents died of Altzheimers and were cared for (by my brother) 24/7 for 15 years. If I need that I will need to pay for it.

And for your question about RMD, yes, I haven't needed it for the past three years that I've had to take it out. I expect I won't need it for at least another 5 years for living expenses.

And now off to the vet....

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Raybo
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Re: Already retired still need to plan

Post by Raybo » Wed Aug 22, 2018 6:59 pm

All the investments you listed are stock funds. Are you 100% stocks? What percentage of your assets is in bonds and cash?
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 7:05 pm

100% stock mutual funds as stated.
No bond funds.
Usually about $25K in the bank.

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munemaker
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Re: Already retired still need to plan

Post by munemaker » Wed Aug 22, 2018 8:14 pm

If you enjoy analytical thinking, consider the book Living Off Your Money by Michael McLung. Also consider using the free RPM spreadsheet by Bigfoot which is free on this site.

If you do not enjoy analytical thinking, then just ignore this.

Since you are 100% equities, I assume you have a pension. If not, ask yourself if you can stomach a 50% decline in your equities.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 9:18 pm

No, no pension.

NancyABQ
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Re: Already retired still need to plan

Post by NancyABQ » Wed Aug 22, 2018 9:29 pm

SJM wrote:
Wed Aug 22, 2018 3:48 pm
All my investment accounts are at Fidelity:
Small Roth (low 5 figures in FLSPX (Fidelity Low Priced Stock))
Traditional IRA (mid 6 figures in BEGRX (Franklin Mutual Beacon,FLSPX,HRTVX (Heartland Value),RYSEX (Royce Special Equity))
Non IRA (high 6 figures mostly in FCNTX (Fidelity Contra Fund), some in FDCAX(Fidelity Capital Appreciation),FLPSX)

A Fidelity Advisor recently suggested I sell all my FCNTX (cap gains would have been $25K) and put all my $$ into Fidelity Preferred Accounts).
I declined.
When I did just now take my RMD I used to funds to open FSTVX (Fidelity Market Index Premium) with what I had to withdraw.

I pay a lot of taxes between the sale of the business and the success of FCNTX, but somehow I'm not at all sure that I think selling FCNTX is the answer. I've had it for at least 30 years.
If you want to start easing your way out of FCNTX without any extra tax consequences, you can turn off the "Dividend and Cap Gains Reinvestment" and instead take that money (which you will be taxed on either way) and either spend it on living expenses, or invest it in something more tax efficient. You can turn off the dividend reinvestment immediately and figure out what you want it invested in later (maybe FSTVX if you like that).

The point of doing that is that at least you aren't constantly buying even more of the FCNTX that apparently you may not want.

SJM
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Re: Already retired still need to plan

Post by SJM » Wed Aug 22, 2018 9:37 pm

Ah, Nancy, that is brilliant and thank you.
I still don't know if I do or I don't want more Contrafund, but at least that will give me an option.
I will take care of that step tomorrow.
Excellent.

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