FIRED!! [Unexpectedly laid off]

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
Golddigger8861
Posts: 2
Joined: Mon Jan 20, 2020 11:33 am

FIRED!! [Unexpectedly laid off]

Post by Golddigger8861 » Mon Feb 03, 2020 11:21 pm

First off, what an amazing resource Bogleheads Forum has been for me. So thankful that I found it. So much depth of knowledge, and experience. My learning curve is steep, but thanks to the forum, the forum’s recommended resources, steep curve has flattened out a bit, and I’m feeling a little less tense in my situation.

I was laid off a couple of days before Thanksgiving 2019, after 29 years of service. Totally blind sided, and caught me with my pants down so to speak, from a financial perspective. Because of my perceived security with my work, I had seriously neglected my investment knowledge over time, as well as paying actual attention to my account which was, Vanguard 2024, at Fidelity. Still on my heels, but trying to learn quickly. Hoping for some sage advice, from this esteemed group, please.
Personal: 58.5, married, wife 59, empty nest, had anticipated retirement at 62, wife currently retired. Prospects don’t seem good for re-entering the work force. Wife handles and documents the household budget to the nth degree, so good handle on that I think, have become more involved now, so that I understand. Health good, will be looking at a knee replacement for the wife at some point in the future. Severance package included 1 year of continued health coverage.

Emergency funds: Six months of expenses

Debt: No debt

Tax Filing Status: Married Filing Jointly

Tax Rate: 10.6% Effective Federal, 4.63% State

State of Residence: Colorado

Age: 58

Desired Asset allocation: 35% stocks / 50% bonds
Desired International allocation: 15% of stocks
My suggestion.

Current retirement assets
1,369,000

Taxable
20% cash No emergency funds included 272K


His Rollover IRA at Fidelity
62% SPAXX Government Money Market 850K

Her Traditional IRA
18% 5 year CD at 2.25% 247K

0% Contributions


Questions:
1. After my untimely dismissal, I have swung way to the side of reasonable, conservancy, and a defensive attitude, as far as my risk tolerance goes. My wife tolerates little to no risk – CD above. She understands consequences of inflation. With the current market cycle, world events, coronavirus, short investment horizon, I’m excessively nervous to get this IRA and excess cash in the market. I hope for some suggestions on how to manage this situation, please.

2. Investment selection for "His IRA". Concerned with the possibly mature market cycle. Thanks.

User avatar
JoeRetire
Posts: 5154
Joined: Tue Jan 16, 2018 2:44 pm

Re: FIRED!!

Post by JoeRetire » Tue Feb 04, 2020 7:03 am

Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm
Prospects don’t seem good for re-entering the work force.
???

Because you don't think you'll be able to get the same job at a different company?
Or because you don't think you'll be able to get any job at all?

In my part of the country, in the current economy, you could walk down the street, turn left or right at any point, and get a job that day.

If you and your wife are financially independent and choose not to work, that's one thing.
But I'd hate for people to give up without trying if they actually want to work.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.

grettman
Posts: 521
Joined: Mon Sep 29, 2014 1:47 pm

Re: FIRED!!

Post by grettman » Tue Feb 04, 2020 7:12 am

Maybe I missed it but what are your annual expenses?

livesoft
Posts: 70424
Joined: Thu Mar 01, 2007 8:00 pm

Re: FIRED!!

Post by livesoft » Tue Feb 04, 2020 7:18 am

I wonder if that tax rate is remotely correct, but maybe it includes 7.65% FICA and medicare taxes. I would expect you to pay zero income taxes in 2020. Have you worked that out?
Wiki This signature message sponsored by sscritic: Learn to fish.

z3r0c00l
Posts: 1688
Joined: Fri Jul 06, 2012 11:43 am
Location: NYC
Contact:

Re: FIRED!!

Post by z3r0c00l » Tue Feb 04, 2020 7:24 am

Sorry to hear about this shock, I had a similar shock layoff years ago and really didn't see it coming. It can turn your world upside down. Did you get a few months of severance? That's like an extra few yards right there and I would surely hope they gave you that much after 29 years. (Our team would give a week per year, so over 6 months.)

The good news is, you are only a few years away from retirement and so it isn't like you are facing a decade or more. Another silver lining is the timing, this is one of the best times in history to look for a job in this country so I would take a day or two and start the hunt. You could probably afford to find something with lower pay but that will be more enjoyable to you. Benefits and a few solid years of earnings should be all you need at this point, no?

Mr. Rumples
Posts: 633
Joined: Sun Aug 25, 2019 7:16 am

Re: FIRED!!

Post by Mr. Rumples » Tue Feb 04, 2020 7:33 am

Obviously, where you live in CO will determine the market. Its different in Denver than in Grover for example. That said, if you are on the front range, you may want to google organizations that are catering to finding employment for older workers. The Rose Foundation, through the Next 50 Initiative, might be able to provide leads in addition to other sources. While unemployment in the Denver area is very low, the competition you will face from new comers will be fierce.

I was laid off in 1983 and even now, other than the unexpected death of my husband, it was the worst time of my life, even worse than the loss of my parents or brother. Don't panic, it will work out. Of course, other than staying idle and enjoying the snow...I loved the weather on the front range, there are scores of volunteer opportunities which might provide leads.

Chris001122
Posts: 208
Joined: Tue Mar 09, 2010 12:50 pm
Location: The Upcountry, South Carolina

Re: FIRED!!

Post by Chris001122 » Tue Feb 04, 2020 7:44 am

1. Encouragement - Getting laid off was one of the best things that ever happened to me. I ended up as an engineer with one of the best companies in the entire world, making just as much money as before. Buffett still works at 89, why not just find more work?

2. I'd put 59% in bonds and 41% in stocks. This is from Jack Bogle, not me. You have less years before retirement to make up huge stock losses, and markets take awhile to recover lost stock gains. The bonds will shield you from that somewhat.

3. I think the 15% international is optional. International has done awful for awhile now. I used to do 25% international, but not any more. Glad I left that behind.

That's all I have. Good work on being a millionaire and in retirement money alone. I'm 54 and almost there, but not quite.

Don't forget to read our semi-sacred tome, "The Bogleheads Guide to Investing". You'll be glad you did.
"It's always been a mistake to bet against the United States since 1776." - Warren Buffett

User avatar
Sandtrap
Posts: 9986
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: FIRED!!

Post by Sandtrap » Tue Feb 04, 2020 7:48 am

I was also laid off at the peak of my earnings late in the game. It was a heavy blow (emotionally and financial for DW and I). Employment prospects were tough. (depends on skillsets and resources).
Suggest:
1. Strongly focus on at least immediate part time employment.
2. How are you for medical insurance from now going forward? (big one and a potential boat anchor).
3. It's natural to go into defensive mode. At this point you have more to lose than to gain. Shifting to a pre. and transitional retirement allocation is wise. (bad time for sequence of returns risk).

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know

carolinaman
Posts: 4052
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: FIRED!!

Post by carolinaman » Tue Feb 04, 2020 8:01 am

I am sorry to hear of your loss of your job. That is tough at any age but especially so as you near retirement. I echo what others are saying about finding another job. Even if you find something paying a lot less than what you were making, it could still be worthwhile and if it has health benefits that will help a lot until you go on Medicare. Donot sell yourself short in terms of your ability and experience. You may need to think outside the box to figure out the best job opportunities for you.

I am pushing another job because I do not know what your living expenses are and whether your current savings will enable you to maintain a good lifestyle. Even a modest income will enable your savings to last longer and allow you to maintain a decent lifestyle. Best wishes.

wolf359
Posts: 2125
Joined: Sun Mar 15, 2015 8:47 am

Re: FIRED!!

Post by wolf359 » Tue Feb 04, 2020 8:03 am

Getting pushed out the door after almost 30 years of service is extremely traumatic. It's like going through a death or divorce. Your life feels off or completely different, whether you had left voluntarily or not.

Obviously, you've taken some time to take a breathe over the holidays.

You have a 6 month emergency fund, so you have time to figure things out.

1) EXPENSES: What are your expenses? You need to figure them 3 ways:
1)a. What are your expenses now? This is your current budget.
1)b. What are your expenses if you retire? (You need to add health care until you turn 65. Work-related expenses reduce.) This is your retirement budget.
1)c. What are your bare bones expenses if you have to cut back as far as possible? This is your survival budget.
For the knee replacement surgery, consider if you can have that done while you're still covered under the company health care. Otherwise you will have to have insurance or budget to cover it on your own. Plan out scenarios to getting it done under the Affordable Care Act (between ages 60-64), or on Medicare (after 65.)

2. INCOME: You can access all your retirement accounts without penalty at 59 1/2. You're close enough that you can effectively count on it. (By the time you use up your emergency fund and taxable assets, you should be over that line.) Your current assets support a rough income of $54,760 according to the 4% SWR (which assumes a 50/50 stock/bond allocation). If you want to be conservative, I'd lower the SWR to 3.5% instead of reducing the stock allocation. A 3.5% SWR gives you $47,915. If these passive income streams are insufficient to cover your current expenses, you need to either get a job to cover the gap, or reduce expenses. A 4% SWR should last 30 years; a 3.5% SWR should be 50 years or more. If you're 3-4 years from your planned retirement, the gap should be small -- almost any job would probably do (Home Depot, Walmart, Starbucks). However, if you've got almost 30 years of experience in something, you should be able to get consulting, part time, or another job at a competitor. Even if you're just training people for certifications in your field, you might be able to find something. Identify what your income gap is, and then figure out how to cover it. It's less daunting than trying to replace your entire salary.
SOCIAL SECURITY: If you can, hold off on filing Social Security until 70 for the spouse with the larger income. The other non-working spouse can file at 62 to help the income situation. This solution maximizes Social Security income for the larger paycheck, effectively buying you an annuity.

3. INVESTMENTS: Your asset allocation doesn't add up to 100%. Treat CDs as bonds in your asset allocation. If you're already following Boglehead methods, you may have set a annual rebalancing date. If you hit that date, rebalance. I'd follow a 3 fund portfolio with Total US Stock Market 35%, Total International Stock Market 15%, and Total Bond Market/CDs 50%. Make sure you write out an investors policy statement with your investment plan, your reasons for picking your asset allocation, and your fears for the market. Plan out what you would do in the situations you are afraid of. (If you picked your asset allocation correctly, you would do nothing.) Refer to that document if those situations occur.

We're pretty much answering in the dark if we don't know your income gap. You're so close that I'd switch into retirement mode and just consider temporary employment to close the gap until the nest egg gets to the right size. Call this your pre-tirement period, or semi-retirement phase. Don't worry about getting a job to boost your career. Use your previous career to get you the best job that covers that gap.

onourway
Posts: 2343
Joined: Thu Dec 08, 2016 3:39 pm

Re: FIRED!!

Post by onourway » Tue Feb 04, 2020 8:40 am

To beat this drum a bit more - everything comes down to expenses expenses expenses. That will determine your path forward. Come back to us with some specific numbers and we can give you much better guidance.

User avatar
Tamarind
Posts: 2083
Joined: Mon Nov 02, 2015 2:38 pm

Re: FIRED!!

Post by Tamarind » Tue Feb 04, 2020 9:04 am

The Bogleheads' Rule #1 is "Invest you must". While you and your wife may believe you understand the risks of inflation, I suspect you don't fully realize just how serious it can be. If you haven't already, use a calculator to see how inflation would have eroded your buying power over the last 10-20 years.

Inflation is historically mild right now but all the safe withdrawal rules are based on portfolios with some real return. Your current all-cash portfolio has an expected return of 0% or less.

I suggest you take a look at a portfolio visualizer tool and see how a bond-heavy portfolio would have performed compared to cash. Look at 50/50 stock/bond all the way down to 25/75. You can have an extremely conservative portfolio that will still return enough, provided your expenses are low or flexible.

mtmingus
Posts: 348
Joined: Sun Jan 07, 2018 4:15 pm

Re: FIRED!!

Post by mtmingus » Tue Feb 04, 2020 9:09 am

Medical insurance:

A "good" thing of the timing: your earned incomes are likely low for 2020 if not getting the same pay-level job soon and that would qualify you for high subsidies of the ACA program.

Make sure you are insured!

User avatar
Watty
Posts: 18788
Joined: Wed Oct 10, 2007 3:55 pm

Re: FIRED!!

Post by Watty » Tue Feb 04, 2020 9:09 am

grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
It would also be good to provide information on

1) Your housing situation including any home equity and monthly mortage or rent and what housing costs in your area.

2) How much Social Security you and your wife will get at your full retirement age. You can get that on the Social Security website and then enter that on this web site to get a suggested claiming strategy.

https://opensocialsecurity.com/

Just FYI, I voluntarily retired when I was your age with less than you have and it is working out just fine, but I have a paid off house and middle class but not frugal budget.

User avatar
Wiggums
Posts: 2891
Joined: Thu Jan 31, 2019 8:02 am

Re: FIRED!!

Post by Wiggums » Tue Feb 04, 2020 9:18 am

Very sorry to hear about your job. I had a coworker pushed out just months shy of getting her pension at 55. my SIL got played off at 52 with 27 years. Pension kicks in at 65 instead of 55 for her. There are no words.

I think you should have some money in the stock market. My children have a balanced fund and they contribute weekly via automated weekly purchasing for 17+ years.

You have saved much more than the average person. You will be fine. Take a deep breath.

I’d encourage you to:

1) Enable automatic buying and get some of that IRA money back in the market. An asset allocation of 30% is conservative and you would best inflation without taking a big risk. You have a nice 5 year CD ladder and that’s fine. My DW grew up poor and is also conservative. However, she does agree that some stocks are needed to combat inflation and any possible reductions to social programs like social security and Medicare or increased taxes to help fund these programs.

2) I’d encourage you to look for a job. You have nothing to lose and everything to gain. Chin up. You did nothing wrong to get terminated. If it doesn’t work out, you are no worse off.

Good luck to you...

mtmingus
Posts: 348
Joined: Sun Jan 07, 2018 4:15 pm

Re: FIRED!!

Post by mtmingus » Tue Feb 04, 2020 9:26 am

Watty wrote:
Tue Feb 04, 2020 9:09 am
grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
Just FYI, I voluntarily retired when I was your age with less than you have and it is working out just fine, but I have a paid off house and middle class but not frugal budget.
Was that 11 years ago?

sgm7091
Posts: 45
Joined: Mon Dec 30, 2019 10:42 pm

Re: FIRED!!

Post by sgm7091 » Tue Feb 04, 2020 9:48 am

Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm

Age: 58
58 is really young.

Unless you want to retire, you have many options. If you like your line of work, you could do consulting and part-time to your preferred load. If you rather get a break from your line of work, you could pursue your passion/hobby by initially volunteering, and then looking for paid work.

Like others said, some supplemental income will help your expense and will be good for the soul too.

Wish you the best.

rich126
Posts: 1295
Joined: Thu Mar 01, 2018 4:56 pm

Re: FIRED!!

Post by rich126 » Tue Feb 04, 2020 10:09 am

Does your wife truly understand the limits of putting money strictly in a CD? That there will be no growth and that you can only withdraw 1/x of it over the next x years? For example, if you think you'll live 30 yrs she can only withdraw 1/30 of that CD amount (assuming the CD rate matches the inflation rate)?

That may be ok if you have a pension, and if that along with social security will cover your expenses, if not then you need some growth. At least get up to a 50/50 allocation if you need any growth in that money or want to withdraw 4% from it.

I try to tell some of my friends that you need to always have an up to date resume and need to keep skills as current as possible. Too many of them work in the same job for a while and think they are secure but no one is secure if a company hits a rough patch. I worked at a defense contractor that hit a rough patch and while it appeared I would be safe, once they started talking about being more "efficient" and they were losing out on new work, I started interviewing and left. Many others rode it out and while some were never let go, a large number were let go and had a tough time finding a job (old skills, unwilling to leave the area, etc.).

And while I would plan to live w/o a job, I'd recommend you keep trying, its pretty hard to find a job if you don't apply and keep your name out there.

Good luck.

User avatar
CyclingDuo
Posts: 2945
Joined: Fri Jan 06, 2017 9:07 am

Re: FIRED!!

Post by CyclingDuo » Tue Feb 04, 2020 10:13 am

Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm
First off, what an amazing resource Bogleheads Forum has been for me. So thankful that I found it. So much depth of knowledge, and experience. My learning curve is steep, but thanks to the forum, the forum’s recommended resources, steep curve has flattened out a bit, and I’m feeling a little less tense in my situation.

I was laid off a couple of days before Thanksgiving 2019, after 29 years of service. Totally blind sided, and caught me with my pants down so to speak, from a financial perspective. Because of my perceived security with my work, I had seriously neglected my investment knowledge over time, as well as paying actual attention to my account which was, Vanguard 2024, at Fidelity. Still on my heels, but trying to learn quickly. Hoping for some sage advice, from this esteemed group, please.
Personal: 58.5, married, wife 59, empty nest, had anticipated retirement at 62, wife currently retired. Prospects don’t seem good for re-entering the work force. Wife handles and documents the household budget to the nth degree, so good handle on that I think, have become more involved now, so that I understand. Health good, will be looking at a knee replacement for the wife at some point in the future. Severance package included 1 year of continued health coverage.

Emergency funds: Six months of expenses

Debt: No debt

Tax Filing Status: Married Filing Jointly

Tax Rate: 10.6% Effective Federal, 4.63% State

State of Residence: Colorado

Age: 58

Desired Asset allocation: 35% stocks / 50% bonds
Desired International allocation: 15% of stocks
My suggestion.

Current retirement assets
1,369,000

Taxable
20% cash No emergency funds included 272K


His Rollover IRA at Fidelity
62% SPAXX Government Money Market 850K

Her Traditional IRA
18% 5 year CD at 2.25% 247K

0% Contributions


Questions:
1. After my untimely dismissal, I have swung way to the side of reasonable, conservancy, and a defensive attitude, as far as my risk tolerance goes. My wife tolerates little to no risk – CD above. She understands consequences of inflation. With the current market cycle, world events, coronavirus, short investment horizon, I’m excessively nervous to get this IRA and excess cash in the market. I hope for some suggestions on how to manage this situation, please.

2. Investment selection for "His IRA". Concerned with the possibly mature market cycle. Thanks.
Sorry to hear about the layoff. Since it is still a fresh wound, I would encourage you to start knocking on doors to get going again.

You could still get back in the game in some shape or form in today's current employment rates being what they are with the supply and demand in your favor. Although it may not be at the same level of income (or even the same industry as you previously worked), at least it delays having to dig into your accumulated assets by the amount you can bring in until all of the dust settles. Think of it this way - every $10K you bring in each year in income equates to having $250K in your nest egg portfolio at a 4% SWR. The more multiples of $10K you can bring in, the better. :beer Finding replacement income and employment that includes health insurance to cover you until you and your spouse once your severance runs out would be prudent as well.

I went through the same 2 years ago at age 56, and am approaching the two year point of learning the news. Some links to experiences and suggestions in the thread I started entitled Losing a job in your 50's...

viewtopic.php?t=273092

Hang in there and consider going on the offensive.

CyclingDuo
"Everywhere is within walking distance if you have the time." ~ Steven Wright

User avatar
Watty
Posts: 18788
Joined: Wed Oct 10, 2007 3:55 pm

Re: FIRED!!

Post by Watty » Tue Feb 04, 2020 10:32 am

mtmingus wrote:
Tue Feb 04, 2020 9:26 am
Watty wrote:
Tue Feb 04, 2020 9:09 am
grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
Just FYI, I voluntarily retired when I was your age with less than you have and it is working out just fine, but I have a paid off house and middle class but not frugal budget.
Was that 11 years ago?
About 4.5 years ago.

Jack FFR1846
Posts: 11338
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: FIRED!!

Post by Jack FFR1846 » Tue Feb 04, 2020 10:41 am

You can't re-enter the workforce? Really?

Just off the top of my head:

The Census Bureau is paying on average $28 an hour for Census workers in my area (pay is based on cost of living in area).

Amazon is hiring all kinds of workers for all kinds of jobs. They start at $15 an hour.

Every business I walk into these days has a help wanted sign up.

Getting a low paying job (although that Census job isn't low pay) allows you to fund a Roth and get some spare cash along with potentially removing zeros from your social security record, if you don't have 35 years (my wife is in that boat and removing zeros by doing per diem nursing).

Don't feel that you have to do the same thing you've done your entire career. Don't feel you have to be paid the high pay you've been making in the past. Your wife can work too. Doesn't need to be lots of hours or some horrible job.
Bogle: Smart Beta is stupid

User avatar
Flobes
Posts: 1211
Joined: Tue Feb 16, 2010 12:40 am

Re: FIRED!!

Post by Flobes » Tue Feb 04, 2020 11:19 am

Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm
I was laid off...

Personal: 58.5, married, wife 59,

State of Residence: Colorado

His Rollover IRA at Fidelity
62% SPAXX Government Money Market 850K

Her Traditional IRA
18% 5 year CD at 2.25% 247K
Welcome to the Forum!

Colorado presents a unique opportunity worthy of consideration. Roth conversions can be particularly attractive.

From age 55 to 65, $20,000 of "Pension/Annuity Income" per person is exempted from state taxes. Roth conversions fall within Colorado's definition of "pension" income. (Amount rises to $24k >65.) The $20k amount is aggregate of all sources of "pension" income.

So if you have no other "pension" income, the first $20k of Roth conversions is state tax-free. For each of you.

Simply file form DR 0104AD "Subtractions from Income Schedule" when you file your routine CO 104, and subtract up to $40,000 on Line 3.

Once you start collecting Social Security, it will fill the bucket of "pension income" exempt from Colorado. Then all of your IRA distributions (including RMDs, Roth conversions, and withdrawals) will be fully taxable by the state.

Roth conversions now mean tax-free growth forever, for you and your heirs, reduced RMDs whence you're 72+, with an effective 4.63% bonus on the front end.

This might be one shiny silver lining of your reduced income: Roth conversions at lowered federal tax bracket and free from state taxes.

randomguy
Posts: 8679
Joined: Wed Sep 17, 2014 9:00 am

Re: FIRED!!

Post by randomguy » Tue Feb 04, 2020 11:39 am

Chris001122 wrote:
Tue Feb 04, 2020 7:44 am

2. I'd put 59% in bonds and 41% in stocks. This is from Jack Bogle, not me. You have less years before retirement to make up huge stock losses, and markets take awhile to recover lost stock gains. The bonds will shield you from that somewhat.

You can make arguments for basically anything from 30/70 to 70/30 as being somewhat reasonable as you are looking at a couple years til retirement and then likely another 30 years for one of them. But we are talking about someone who is at 0% stocks (and I assume has been there for a while). I am not sure they have any market risk tolerance. I would be worried about panic selling when a minor 20% decline came along (happens every couple of years). I think the OP is looking at 50/50 (35% US, 15% international, 50% bonds) which seems like a huge increase in risk. They might be a the poster child for the annuities even at their poor rate of return.

As other people have pointed out it is all about expenses. I am guessing that with the OP current risk tolerance and portfolio size, something like 45-55k/year (a lot depends on exact SS numbers) of income is in the ball park. I have a feeling though it will be very stressful watching the portfolio rapidly deplete until SS kicks in. Even moderate amounts of income now might make that feel a lot better.

dknightd
Posts: 2164
Joined: Wed Mar 07, 2018 11:57 am

Re: FIRED!!

Post by dknightd » Tue Feb 04, 2020 11:41 am

grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
This is key! You might have enough.
Do really want another job?
If you value a bird in the hand, pay off the loan. If you are willing to risk getting two birds (or none) from the market, invest the funds.

fru-gal
Posts: 1560
Joined: Wed Jan 02, 2019 9:48 pm
Location: New England

Re: FIRED!!

Post by fru-gal » Tue Feb 04, 2020 11:43 am

JoeRetire wrote:
Tue Feb 04, 2020 7:03 am
Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm
Prospects don’t seem good for re-entering the work force.
???

Because you don't think you'll be able to get the same job at a different company?
Or because you don't think you'll be able to get any job at all?

In my part of the country, in the current economy, you could walk down the street, turn left or right at any point, and get a job that day.

If you and your wife are financially independent and choose not to work, that's one thing.
But I'd hate for people to give up without trying if they actually want to work.
Let's get real, here. I and several of my highly trained hard working friends 50+ could not get hired for anything but big box greaters in my area of the country.

fru-gal
Posts: 1560
Joined: Wed Jan 02, 2019 9:48 pm
Location: New England

Re: FIRED!!

Post by fru-gal » Tue Feb 04, 2020 11:49 am

Jack FFR1846 wrote:
Tue Feb 04, 2020 10:41 am
You can't re-enter the workforce? Really?

Just off the top of my head:

The Census Bureau is paying on average $28 an hour for Census workers in my area (pay is based on cost of living in area).
The Census Bureau is advertising its head off in my area. I've had my application in available status for several months. I have not been hired. I have no idea what they're doing, or if I am just being crossed off because of my age.

Wanderingwheelz
Posts: 259
Joined: Mon Mar 04, 2019 9:52 am

Re: FIRED!!

Post by Wanderingwheelz » Tue Feb 04, 2020 11:50 am

mtmingus wrote:
Tue Feb 04, 2020 9:26 am
Watty wrote:
Tue Feb 04, 2020 9:09 am
grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
Just FYI, I voluntarily retired when I was your age with less than you have and it is working out just fine, but I have a paid off house and middle class but not frugal budget.
Was that 11 years ago?
“working out just fine” in an environment where bond values have gone nowhere but sharply higher and well.. stocks have had a run for the record books.

I’d be cautious with offering this sort of anecdote without an (*).

smitcat
Posts: 5255
Joined: Mon Nov 07, 2016 10:51 am

Re: FIRED!!

Post by smitcat » Tue Feb 04, 2020 11:54 am

fru-gal wrote:
Tue Feb 04, 2020 11:43 am
JoeRetire wrote:
Tue Feb 04, 2020 7:03 am
Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm
Prospects don’t seem good for re-entering the work force.
???

Because you don't think you'll be able to get the same job at a different company?
Or because you don't think you'll be able to get any job at all?

In my part of the country, in the current economy, you could walk down the street, turn left or right at any point, and get a job that day.

If you and your wife are financially independent and choose not to work, that's one thing.
But I'd hate for people to give up without trying if they actually want to work.
Let's get real, here. I and several of my highly trained hard working friends 50+ could not get hired for anything but big box greaters in my area of the country.
"Let's get real, here. I and several of my highly trained hard working friends 50+ could not get hired for anything but big box greaters in my area of the country."

FWIW - where we are the big box stores are hiring at more than $15/hr and handing out OT on a regular basis.
For a two person household they are yielding annual incomes of $80K + per year.
Not very bad at all as a fallback plan for a couple of years ….

User avatar
Mlm
Posts: 442
Joined: Sat Apr 09, 2016 6:00 pm

Re: FIRED!!

Post by Mlm » Tue Feb 04, 2020 12:17 pm

OP, The same thing happened to me on my 27th anniversary with the same company. I was almost 62, single and planned to retire at 65. I was eager to find something else even if it was on a lesser scale. In fact, my first post was about this very thing.

My severance pay, six months of unemployment and extended health insurance (I negotiated) kept me going for a year. During that year I easily found out that no one wanted to hire someone my age and I really didn't want to return to the workforce as much as I did in the beginning. My savings were low.

So I worked out a budget that I could afford while delaying my social security as long as possible and have been living off of cash savings and dividends from my investments. This qualified me for very low cost health insurance and a few other subsidies along with no federal income taxes.

I just turned 65 and my investments have grown about 50% during that time ( I got lucky with the market). I am now starting Roth conversions until I decide to take social security.

The key to being able to do this was keeping to a strict budget on expenses during the early years. Yes, I made sacrifices but I can breath a little easier now.

You have choices to make and your perspective on what is the most important will change over time. I wish you the best as you figure it all out.

pkcrafter
Posts: 13914
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: FIRED!!

Post by pkcrafter » Tue Feb 04, 2020 12:46 pm

Golddigger8861 wrote:
Mon Feb 03, 2020 11:21 pm

I was laid off a couple of days before Thanksgiving 2019, after 29 years of service. Totally blind sided, and caught me with my pants down so to speak, from a financial perspective. Because of my perceived security with my work, I had seriously neglected my investment knowledge over time, as well as paying actual attention to my account which was, Vanguard 2024, at Fidelity.

You are in good shape, but it depends on your annual spending needs. 4% is the "safe" withdrawal rate.
Vanguard 2024? Do you mean Vanguard TR2025? That fund is 61% stock.
Emergency funds: Six months of expenses
Debt: No debt
Good.
Desired Asset allocation: 35% stocks / 50% bonds
Desired International allocation: 15% of stocks
Not clear what your overall AA (asset allocation) is. All funds must equal 100%. Do you mean 50% stock, 50% non-stock? Total assets must include wife's holdings.
Current retirement assets
1,369,000
Good job of saving. This would suggest annual withdrawals of ~55k/year.
Questions:
1. After my untimely dismissal, I have swung way to the side of reasonable, conservancy, and a defensive attitude, as far as my risk tolerance goes. My wife tolerates little to no risk – CD above. She understands consequences of inflation. With the current market cycle, world events, coronavirus, short investment horizon, I’m excessively nervous to get this IRA and excess csh in the market. I hope for some suggestions on how to manage this situation, please.
2. Investment selection for "His IRA". Concerned with the possibly mature market cycle. Thanks.
I also retired early because of a health problem, and it felt like I was suddenly on a tightrope with no net below. :shock: That uncomfortable feeling went away after a few months. I also got a small part time job nearby just to keep busy. Turned out to be enjoyable.

You will be fine. First thing you need to do is decide on an asset allocation. Maybe you want to start with lower risk like 30/70, but in the long term that won't sustain your portfolio. You will need about 40% equity to sustain spending power and not run out of money in 20 years.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

mtmingus
Posts: 348
Joined: Sun Jan 07, 2018 4:15 pm

Re: FIRED!!

Post by mtmingus » Tue Feb 04, 2020 1:28 pm

Wanderingwheelz wrote:
Tue Feb 04, 2020 11:50 am
mtmingus wrote:
Tue Feb 04, 2020 9:26 am
Watty wrote:
Tue Feb 04, 2020 9:09 am
grettman wrote:
Tue Feb 04, 2020 7:12 am
Maybe I missed it but what are your annual expenses?
Just FYI, I voluntarily retired when I was your age with less than you have and it is working out just fine, but I have a paid off house and middle class but not frugal budget.
Was that 11 years ago?
“working out just fine” in an environment where bond values have gone nowhere but sharply higher and well.. stocks have had a run for the record books.

I’d be cautious with offering this sort of anecdote without an (*).
Exactly! I'd retire early if I were guaranteed 1/2 of the returns of the last 11 yrs for bonds and stocks AND ACA, between now and age 65.

aristotelian
Posts: 7022
Joined: Wed Jan 11, 2017 8:05 pm

Re: FIRED!!

Post by aristotelian » Tue Feb 04, 2020 1:35 pm

Please keep in mind that there is inflation risk as well as market risk. Your portfolio as constructed is at best treading water with inflation. Without some way to produce real return, every dollar you spend is coming out of your principal once you adjust for inflation. This can only work if you have a seriously low withdrawal rate. As far as when to get in, nobody can predict. There is lots of bad news going on right now, but rest assured the bad news is priced into the market as well as the good.

fru-gal
Posts: 1560
Joined: Wed Jan 02, 2019 9:48 pm
Location: New England

Re: FIRED!!

Post by fru-gal » Tue Feb 04, 2020 1:43 pm

fru-gal wrote:
Tue Feb 04, 2020 11:49 am
Jack FFR1846 wrote:
Tue Feb 04, 2020 10:41 am
You can't re-enter the workforce? Really?

Just off the top of my head:

The Census Bureau is paying on average $28 an hour for Census workers in my area (pay is based on cost of living in area).
The Census Bureau is advertising its head off in my area. I've had my application in available status for several months. I have not been hired. I have no idea what they're doing, or if I am just being crossed off because of my age.
This motivated me to call the local office and ask what's up? It turns out they have a quota to meet for the number of people they get to apply. I forgot to ask how that compares to the number they'll hire.

User avatar
JoeRetire
Posts: 5154
Joined: Tue Jan 16, 2018 2:44 pm

Re: FIRED!!

Post by JoeRetire » Tue Feb 04, 2020 1:55 pm

fru-gal wrote:
Tue Feb 04, 2020 11:43 am
Let's get real, here. I and several of my highly trained hard working friends 50+ could not get hired for anything but big box greaters in my area of the country.
So get real and practice saying "Welcome to Big Box. Would you like a carriage?" It gets you on a payroll if you actually want to work.

Just don't tell me there aren't jobs for anyone over 50.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.

printer86
Posts: 153
Joined: Mon Apr 25, 2016 8:45 am

Re: FIRED!!

Post by printer86 » Tue Feb 04, 2020 2:30 pm

Knowing how conservative you are, here's what I would do.

1. Put your IRA and your wife's IRA in the Vanguard Wellesley Fund (VWINX) and don't touch it for as long as you can.
2. Keep the taxable funds liquid (CD's or Ally savings accounts, or both) and draw from those funds if necessary.
3. Look for some kind of work to offset the drawdown of your taxable account.

Good Luck.

User avatar
celia
Posts: 10301
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

LAID OFF!!

Post by celia » Tue Feb 04, 2020 2:32 pm

I don't like the title of this thread. You weren't FIRED!!, you were LAID OFF (if I understand you correctly). There's a big difference here and if you will be interviewing for another job, you should use the correct terminology or you won't get hired. (FIRED implies you did something wrong: for example, embezzlement, coming to work drunk, or not showing up without a good excuse. LAID OFF means they didn't have enough work for you or they are down-sizing --no shame in that.)

The lack of investment in the stock market will hurt you in the long term. You and your spouse need to agree on a minimum to be invested that way. Why not put $100K in stock funds each year until your AA is 50/50? If it helps, maybe you can also agree that if you get another job, all the new money is then "unexpected" and it will be invested in stock funds.

You also have 80% of your money in tax-deferred accounts. Taxes have not yet been paid on it, but will be due, starting when you are 72. I think you should start converting some of it to Roth each year, especially since your tax rate is currently low. Once you both collect SS, possibly pensions, and take RMDs, your taxes will be a lot higher, so it is better to level out your taxes for your remaining years, starting now. Stop and first do an estimate of your expected age 72 incomes and what the taxes would be if the tax code reverts to 2017 levels:
https://www.bankrate.com/taxes/2017-tax-brackets/

And, for goodness sake, all the Roth space should be used for stock funds so that the future growth can be tax-free.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.

visualguy
Posts: 1809
Joined: Thu Jan 30, 2014 1:32 am

Re: LAID OFF!!

Post by visualguy » Tue Feb 04, 2020 2:41 pm

celia wrote:
Tue Feb 04, 2020 2:32 pm
(FIRED implies you did something wrong: for example, embezzlement, coming to work drunk, or not showing up without a good excuse. LAID OFF means they didn't have enough work for you or they are down-sizing --no shame in that.)
It's still problematic in the eyes of potential employers unless pretty much everyone got laid off... There's the question of why they picked you vs someone else to lay off. Also, some companies use layoffs as a way to get rid of the bottom performers with less risk of lawsuits. Saying "laid off" is better than saying "fired", of course, but it still puts you in a difficult position. Typically, you want to see the writing on the wall before it happens, and pre-empt it by finding another job before you are laid off. Not always possible, of course.

ZMonet
Posts: 22
Joined: Sun Dec 15, 2019 2:43 pm

Re: LAID OFF!!

Post by ZMonet » Tue Feb 04, 2020 2:51 pm

celia wrote:
Tue Feb 04, 2020 2:32 pm
I don't like the title of this thread. You weren't FIRED!!, you were LAID OFF (if I understand you correctly). There's a big difference here and if you will be interviewing for another job, you should use the correct terminology or you won't get hired. (FIRED
I may be wrong but I think since this happened to be a couple years before retirement and he is thinking of calling it quits he figures he is Financially Independent Retiring Early but, of course, without expenses it is impossible to validate that he is ready to FIRE.

Unladen_Swallow
Posts: 767
Joined: Tue Dec 10, 2019 6:12 pm

Re: LAID OFF!!

Post by Unladen_Swallow » Tue Feb 04, 2020 2:57 pm

celia wrote:
Tue Feb 04, 2020 2:32 pm
I don't like the title of this thread. You weren't FIRED!!, you were LAID OFF (if I understand you correctly). There's a big difference here and if you will be interviewing for another job, you should use the correct terminology or you won't get hired. (FIRED implies you did something wrong: for example, embezzlement, coming to work drunk, or not showing up without a good excuse. LAID OFF means they didn't have enough work for you or they are down-sizing --no shame in that.)
Yup. Fired with exclamation points gets more clicks that other titles.

I thought Fired meant (Financial Independence/Retired Early).
"I think it's much more interesting to live not knowing than to have answers which might be wrong." - Richard Feynman

Unladen_Swallow
Posts: 767
Joined: Tue Dec 10, 2019 6:12 pm

Re: FIRED!!

Post by Unladen_Swallow » Tue Feb 04, 2020 3:02 pm

JoeRetire wrote:
Tue Feb 04, 2020 1:55 pm
fru-gal wrote:
Tue Feb 04, 2020 11:43 am
Let's get real, here. I and several of my highly trained hard working friends 50+ could not get hired for anything but big box greaters in my area of the country.
So get real and practice saying "Welcome to Big Box. Would you like a carriage?" It gets you on a payroll if you actually want to work.

Just don't tell me there aren't jobs for anyone over 50.
100%. There are jobs. They might not be jobs we like (understandable), but they might be jobs we need. Necessity dictates our actions.

My family member was widowed last year and since took up a job at Walmart. She is 72. Saved enough to buy a second hand SUV in cash. She was a nurse in her working life years ago.
"I think it's much more interesting to live not knowing than to have answers which might be wrong." - Richard Feynman

mtmingus
Posts: 348
Joined: Sun Jan 07, 2018 4:15 pm

Re: LAID OFF!!

Post by mtmingus » Tue Feb 04, 2020 3:13 pm

Unladen_Swallow wrote:
Tue Feb 04, 2020 2:57 pm
celia wrote:
Tue Feb 04, 2020 2:32 pm
I don't like the title of this thread. You weren't FIRED!!, you were LAID OFF (if I understand you correctly). There's a big difference here and if you will be interviewing for another job, you should use the correct terminology or you won't get hired. (FIRED implies you did something wrong: for example, embezzlement, coming to work drunk, or not showing up without a good excuse. LAID OFF means they didn't have enough work for you or they are down-sizing --no shame in that.)
Yup. Fired with exclamation points gets more clicks that other titles.

I thought Fired meant (Financial Independence/Retired Early).
True - that's my initial reaction too: FIRE is a well known acronym here.
Also I believe fired would not be able to claim unemployment benefits.

User avatar
Wiggums
Posts: 2891
Joined: Thu Jan 31, 2019 8:02 am

Re: LAID OFF!!

Post by Wiggums » Tue Feb 04, 2020 3:23 pm

visualguy wrote:
Tue Feb 04, 2020 2:41 pm
celia wrote:
Tue Feb 04, 2020 2:32 pm
(FIRED implies you did something wrong: for example, embezzlement, coming to work drunk, or not showing up without a good excuse. LAID OFF means they didn't have enough work for you or they are down-sizing --no shame in that.)
It's still problematic in the eyes of potential employers unless pretty much everyone got laid off... There's the question of why they picked you vs someone else to lay off. Also, some companies use layoffs as a way to get rid of the bottom performers with less risk of lawsuits. Saying "laid off" is better than saying "fired", of course, but it still puts you in a difficult position. Typically, you want to see the writing on the wall before it happens, and pre-empt it by finding another job before you are laid off. Not always possible, of course.
My SIL got laid off. Not just her; the entire department. As in getting out of the mortgage business.

My coworker got laid off due to downsizing at 54 3/4 years old and over 30 years of service. Newest n the department. It made no sense to me and we ended up hiring two contractors to replace her. If you have marketable skills, you can give work. Agree that it may or may not be a better job. Pension kicked it at 55. She has a masters degree.

Both can explain the reason for the layoff.

Topic Author
Golddigger8861
Posts: 2
Joined: Mon Jan 20, 2020 11:33 am

Re: FIRED!!

Post by Golddigger8861 » Tue Feb 04, 2020 4:47 pm

Thank you all for the responses, advice, knowledge, expertise, and sharing! I apologize fort the lack of expense info. I didn't see it in the "template' I was trying to adhere to, I must have missed it - Expenses are 32K annual. My wife keeps quite close watch on this.

JoeRetire; I do believe I will be able to find a job. Probably not in the industry I was involved with as it was sort of a "one of a kind" for the area. Just noticed a resistance to an older worker in the force. Maybe over sensitive. I will continue, thank you.

grettman I apologize true annual expenses are 32K annually. Including property taxes, insurances, and all those goodies.

livesoft Straight from my preparers report 2018: Tax Bracket 22%, Effective Tax Rate 1.62. I'll have to research that a little more, if that is incorrect.

z3r0c00l Thank you for the response, and thank you for the advice! I will take it to heart. Severance was good in my opinion 12 months wages - primary reason for my cash heavy position, and 12 months continued health care, COBRA.

Mr. Rumples Thank you for sharing your experiences, and your (closer to home) knowledge. I'm sorry for you losses, for sure. I will take a serious look at your suggestions.

Chris001122 Thanks for the encouragement! "Glass half full, instead of half empty.) Need to dwell on this more. Yes sir on the Bogleheads Guide to Investing I have Taylor's Guide to thee Three-Fund Portfolio, sitting right here! Making "Bogleheads" my first resource. So fortunate to have found this site.

Sandtrap Company offered 12 months paid in package, so that is where I'm at right now. Feel very vulnerable to sequence of returns risk right now. Probably primary reason not really in the market. Appreciate the support, and sharing your "layoff" experience.

carolinaman Apologize for not including living expenses - Currently 32K annually, don't foresee them going up, but would like to increase a little bit out in retirement, to live "high on the hog" so to speak, just a little.

wolf359 What a comprehensive response!! Sincerely, thank you for taking the time to write all this out! I will re-read this, as well as the other responses multiple times. I don't take any of this information lightly.

onourway Apologize for leaving this important number out :oops: 32k annually, no debt. This is a good number - credit to my wife for keeping me in line here.

Tamarind Aggreed. I will take your advice, I will study up on inflation impact and risk. Will do on the portfolio visualizer.

mtmingus Yes sir, certainly lower. Than you. I'll have to google "ACA Program"?

Watty Really missed the boat on including expenses - Currently 32k annually. Our home is free and clear, no mortgage. Primary related expenses are included in the annual number. Zillow value is 465K, not sure what equity would be on that number. S.S. His 2858. Hers 2524. Thanks!

Wiggums Thank you for the response, and the good wishes. Certainly looking harder at "The Market".

mtmingus Should I take this as probably not enough accumulated for this day and age? Will look even closer at future expenses. Thanks.

sgm7091 I'm coming to grips with it all. Thank you

rich126 Time Deposit held within IRA. 5 year maturity, four years to go, 2.25%. That's my wife! She would rather lose a little money, rather than have any exposure to anything even close to volatility. Something tuff for me to battle. Thank you for the work/job advice, I no doubt did many things wrong - being so complacent in my work, lesson learned. Did no preparation for what might happen. Working on it! Thank you.

Cyclingduo I'll check your link - thank you. I like your 10K/4% analogy, make sense. Couple more easy years does add up to quite a lot!!

User avatar
Johnsson
Posts: 305
Joined: Mon Jul 17, 2017 2:28 pm

Re: FIRED!!

Post by Johnsson » Tue Feb 04, 2020 5:11 pm

With expenses at $32k you're in great shape and can retire now... IFF you have activities to keep you busy in retirement.

It sounds like you don't have healthcare in that number. Healthcare.gov will help with options once your company healthcare runs out.

You will have room for Roth conversions (from your pre-tax investments) which I also suggest... just keep total income below the ACA limits ~$64k.

Have you played with www.firecalc.com or www.i-orp.com? They will help you get a grip on how safe retirement would be and how to manage your money (once you've decided on asset allocations).

Congratulations, you made it!! :sharebeer

Good luck!
'In theory there is no difference between theory and practice. In practice there is.' Yogi Berra

smitcat
Posts: 5255
Joined: Mon Nov 07, 2016 10:51 am

Re: FIRED!!

Post by smitcat » Tue Feb 04, 2020 5:57 pm

Johnsson wrote:
Tue Feb 04, 2020 5:11 pm
With expenses at $32k you're in great shape and can retire now... IFF you have activities to keep you busy in retirement.

It sounds like you don't have healthcare in that number. Healthcare.gov will help with options once your company healthcare runs out.

You will have room for Roth conversions (from your pre-tax investments) which I also suggest... just keep total income below the ACA limits ~$64k.

Have you played with www.firecalc.com or www.i-orp.com? They will help you get a grip on how safe retirement would be and how to manage your money (once you've decided on asset allocations).

Congratulations, you made it!! :sharebeer

Good luck!

"With expenses at $32k you're in great shape and can retire now... IFF you have activities to keep you busy in retirement."
Agreed 100% - what are the OP's and his spouses SS benefits at 62 and FRA?

Chris001122
Posts: 208
Joined: Tue Mar 09, 2010 12:50 pm
Location: The Upcountry, South Carolina

Re: FIRED!!

Post by Chris001122 » Tue Feb 04, 2020 6:51 pm

randomguy wrote:
Tue Feb 04, 2020 11:39 am
Chris001122 wrote:
Tue Feb 04, 2020 7:44 am

2. I'd put 59% in bonds and 41% in stocks. This is from Jack Bogle, not me. You have less years before retirement to make up huge stock losses, and markets take awhile to recover lost stock gains. The bonds will shield you from that somewhat.

I think the OP is looking at 50/50 (35% US, 15% international, 50% bonds) which seems like a huge increase in risk. They might be a the poster child for the annuities even at their poor rate of return.
I should clarify.

"...Bogle was a proponent of the Own Your Age In Bonds (OYAIB) rule (which states that if you're 30 years old, you own 30 percent in bonds, age 40, then 40 percent in bonds, and so on)..."

Him and his wife are around 59 years old, so I suggested 59% bonds and 41% stocks. He would change this each year to match their average age.

That's all.

I absolutely disagree with annuities or CDs for retirement money. Sorry, we will have to disagree on that one.
"It's always been a mistake to bet against the United States since 1776." - Warren Buffett

mtmingus
Posts: 348
Joined: Sun Jan 07, 2018 4:15 pm

Re: FIRED!!

Post by mtmingus » Tue Feb 04, 2020 7:36 pm

I don't see if you have enrolled on your ex-employer's Cobra - they normally offer inactivated employees up to 1 yr of medical insurances upon terminations. Most of the time these are EXPENSIVE.

I'd think medical insurance for your family is the first thing you need to secure now if you haven't yet!
Yes it's more important than to fix your resume.

If your 2020 incomes are lower enough you would qualify substantial subsidies for your Affordable Care Act Program.
There are a lot of discussions on this topic on this forum. Another good place is
Subsidy Amounts By Income For The Affordable Care Act (Obamacare):
https://www.financialsamurai.com/subsid ... obamacare/

ExitStageLeft
Posts: 1888
Joined: Sat Jan 20, 2018 4:02 pm

Re: FIRED!!

Post by ExitStageLeft » Tue Feb 04, 2020 7:53 pm

You are in great shape to retire. Doing a quick analysis at CFIRESim.com, it looks like you could spend $65k per year over the next 40 years. That is with you both getting SS at age 67 and all assets in cash.

If you change the asset allocation to 50% stocks, 40% bonds and 10% cash (for example) then the annual spend increases to $85k per year.

Another thing to examine is what is your best strategy for claiming Social Security. There is an excellent online tool at https://opensocialsecurity.com/ . A frequent strategy employed by Bogleheads is to have the lower earner claim at age 62 while the higher earner defers to age 70. You can even play with different mortality tables if you click the Advanced option.

Lalamimi
Posts: 287
Joined: Mon Jun 24, 2019 4:22 pm
Location: Texas

Re: FIRED!!

Post by Lalamimi » Tue Feb 04, 2020 7:57 pm

were you in the 10% tax bracket before you were laid off? Were you laid off, or fired, there is a difference. I was laid off in 2007, ended up commuting on weekends to a job 2 1/2 hrs away. Then, 2 yrs ago at 64, from the oil and gas sector. I gave up. You should be able to find something. It might not be within 10 miles, but as stated above, there are jobs out there. Pick one. Good luck.

Independent George
Posts: 680
Joined: Wed Feb 17, 2016 12:13 pm
Location: Chicago, IL, USA

Re: FIRED!!

Post by Independent George » Tue Feb 04, 2020 9:59 pm

With 32k in expenses, and well over 1.3M in assets, I think they're ready to retire now while deferring social security until 70. Given the OP's numbers, I think there's no need to invest in stocks at all. They could easily put $500k into a TIPS ladder to mitigate inflation risk and still live well before taking Social Security. I'd say the biggest risk right now is an unexpected (is there any other kind?) medical expense.

Post Reply