Could be an amazing life journey! ….”Europe” is broad. Many trade-offs of location v. cost of living and taxes. I think “Upside Investing” would be a good planning technique for you because you would initially assess your floor living standard assuming all your funds where in low-risk investments.
Gotcha…if possible, holding out to age 70 for SS retirement benefits is the usually the best financial choice if you are healthy and have a family history of longevity. Converting your 401(k) to a Roth IRA may be another good financial decision. The effect is measurable in advance and much of it can be in savings of Medicare Part B premiums. That may not be an issue for you, though.
How should I balance the risk between stocks and bonds in my investment strategy if I want to maintain a stable living standard in retirement (say young age like 50), but I'm unsure about my tolerance for market volatility?
Sorry. I meant VIP. Come on board as a paid subscriber for the moment and we can message directly….I will send you our book and we message directly to help you learn.
Hi @Janine Richards …unsure if you received my reply. I meant the VIP option. My suggestion is to come on board as a paid and you will receive notice about a series I am putting together for you to build your own baseline plan.
In reading this, and from what I have determined myself, it seems that someone at my age 67, and retired (at least for now), should consider moving to the lower risk model within the next year or so.
What I am not clear about is should I move to all Bonds at this point or spread my account out evenly between stocks, 401K and Money Markets to diversify?
I also should have funds soon from a house sale soon, how do I best invest that so that I am making money rather than just using the funds to live off of them?
Hi Janine, Your finances are completely different. You are a different age, have different SS benefits, and have other financial resources. ……Any investment choices are part of the story but just a component. You need to build a baseline economics-based financial plan. I offer that at the Founders level.
Thanks, my plan is to sell my house and move to Europe in the spring.
Looking into how best to diversify funds for lower risk and the ability to draw from them to supplement my SS
Could be an amazing life journey! ….”Europe” is broad. Many trade-offs of location v. cost of living and taxes. I think “Upside Investing” would be a good planning technique for you because you would initially assess your floor living standard assuming all your funds where in low-risk investments.
Portugal or Spain are my top locations currently, both are fairly inexpensive.
I have an Irish passport so can move without needing a visa.
I hope to keep rent in the $800 range and should get around $2200 from SS when I start claiming, trying to hold out until I am 68 for that.
I have $169k in my 401k currently split 60% stocks and 40 money market.
Gotcha…if possible, holding out to age 70 for SS retirement benefits is the usually the best financial choice if you are healthy and have a family history of longevity. Converting your 401(k) to a Roth IRA may be another good financial decision. The effect is measurable in advance and much of it can be in savings of Medicare Part B premiums. That may not be an issue for you, though.
Below is a cite for the Roth conversation question. https://larrykotlikoff.substack.com/p/larry-and-jay-abolofia-demo-maxifis
How should I balance the risk between stocks and bonds in my investment strategy if I want to maintain a stable living standard in retirement (say young age like 50), but I'm unsure about my tolerance for market volatility?
Your investment company can run you through a risk tolerance study. Here is one from Vanguard that is public, https://retirementplans.vanguard.com/VGApp/pe/PubQuizActivity?Step=start
Sorry. I meant VIP. Come on board as a paid subscriber for the moment and we can message directly….I will send you our book and we message directly to help you learn.
I have subscribed
Awesome! Welcome! Your best financial decision this year! Let’s get to work.
I amnot sure what you mean by founders level. I see a monthly, yearly and VIP option.
Hi @Janine Richards …unsure if you received my reply. I meant the VIP option. My suggestion is to come on board as a paid and you will receive notice about a series I am putting together for you to build your own baseline plan.
In reading this, and from what I have determined myself, it seems that someone at my age 67, and retired (at least for now), should consider moving to the lower risk model within the next year or so.
What I am not clear about is should I move to all Bonds at this point or spread my account out evenly between stocks, 401K and Money Markets to diversify?
I also should have funds soon from a house sale soon, how do I best invest that so that I am making money rather than just using the funds to live off of them?
Hi Janine, Your finances are completely different. You are a different age, have different SS benefits, and have other financial resources. ……Any investment choices are part of the story but just a component. You need to build a baseline economics-based financial plan. I offer that at the Founders level.