Ask Terry Questions 63 & can’t get a job

63 & can’t get a job

By Terry Savage on January 31, 2014 | Financial Planning / Retirement

I am a single, healthy 63 yr old with no family, so completely responsible for own financial well being. Fortunately I have a healthy dividend stock portfolio with about $51,000 in cash in money mkt. All Blue Chip, J&J, UTX, JPMorgan, CHV, EXOM, Qualcomm & more good ones. I have been unable to get a job now for over a yrs. My broker is a man, he makes very little money on me as I am not a trader especially these days. Don’t know if I should sell a chunk of stocks & buy a mobile home to live in. Expenses have gone up, I am upside down about $2,800 ea month now. Unemployment helped but is now cut off thanks to gov. If I sell, it will trigger capital gains but should be about 10% considering tax bracket I’m in. Is now a good time to sell a chunk, say $80,000 to $100,000 & buy something to live in? or keep trying to get a job & pray? My broker wants me to stay fully invested!!! Pigs get fed, hogs get slaughtered!!! I rode the market all the way down in 08′ lost about 40%, good news, I have a strong stomach & didn’t sell but I was 58 then!!! Getting older, yikes!! What to do??? Thanks!

Terry Says:  Whew, this is more than an investment question.  It is about the direction of your life.  I dont’ know your profession or job skills, but I do know that you shouldn’t give up looking.  On the other hand, you might not find a job and might ultimately wind up living on Social Security.  Even that isn’t going to cover your “upside down” $2800 per month.  So, I think a bit of pruning of your investments might be in order — not to live on the money, but simply so you are not forced to sell if you need cash, and so you won’t panic if the market falls sharply again. In other words, you need more “chicken money.”

I also think you need some outside help looking at your financial picture and prospects.  I urge you to contact Consumer Credit Counseling at 800-388-2227.  That will put you in touch with the nearest local office.  You can trust them, and they can take a look at your situation and make specific recommendations re your living and job plans.




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