We want to retire by 62 at the latest. Our home is worth $450,000 with just under four years to pay off the mortgage. We are invested 100% into equities. Moneyist, is there anything we should be doing differently?
I read your articles on retirement each week, and am looking for advice not on whether I can retire now, but what I should be thinking about and doing differently over the next decade before retirement.
Up until about two years ago we were invested completely into broad market mutual funds with a very low cost basis but I feel a more hands-on investing focus is both satisfying and necessary for one’s largest asset. We have had an investment adviser in the past, and never felt like they earned their 0.75-1.25% fee to manage our investments. We would like to retire by 62 at the latest, and leaving the workforce at 59-1/2 sounds even better.
The first thing I noticed about your letter was your asset allocation. I always say people near and even in retirement should have a healthy mix of equities in their retirement portfolios because retirement could last decades and that money needs to last. At the same time, however, you do need to have some sort of protection in your asset allocation. With one unfortunate shift down in the markets, your account balance could quickly and suddenly drop — and nobody wants that.
Take for example the FAANG stocks. “Everything FAANG has been working well, but we can move into a period where their growth becomes muted,” said Thom Rindahl, a certified financial planner at TruWest Wealth Management Services. A diversified portfolio may not ramp up your portfolio balance as quickly, but it also won’t put it in as much of harm’s way. “I definitely believe in a diversified portfolio of asset types and management styles,” Rindahl said.
There are plenty of claiming strategies as well, especially for married couples. For example, you might want to consider delaying just the benefit of the highest wage earner to at least Full Retirement Age or beyond, that way if in the event that person dies, the surviving spouse will have a higher benefit to depend on , Finfrock said.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Over 100 Michigan Schools Close Friday After Copycat Shooting Threats Pour InCLASSES CANCELED: Copycat threats reported days after a shooting at a Detroit-area high school
Leer más »
Over 100 Michigan School Districts Closed Friday Due To Threats After ShootingMore than 60 schools closed earlier in the week due to copycat threats.
Leer más »
Germany: 1 in 100 infected with virus, health minister saysGermany’s health minister says more than 1% of the population is currently infected with the coronavirus, and has called on citizens who haven’t done so yet to get vaccinated
Leer más »
Beat the blues this holiday season by keeping in touch with older family and friends all yearEven if you can’t socialize much in person this year, aim to stay connected with friends and family — and make a plan to keep in touch with others even after the holiday decorations are put away.
Leer más »