Ask Terry Questions Retired couple, 8 years apart, how to invest?

Retired couple, 8 years apart, how to invest?

By Terry Savage on September 12, 2018 | Financial Planning / Retirement

Terry, you are a wealth of knowledge, so here goes. I just listened to you on WGN Radio at the Wintrust Luncheon and heard about your new improved website. It is beautiful and user friendly!
I am 67, retired, w/husband, 75, who ‘retired’ 6 months ago. We have over nearly $900K in our combined portfolio with 2 pensions & 2 SS for an annual income of $67K before taxes. We do not need to dip into my husband’s RMD to pay our bills. I manage our money but I want to consider it 2 portfolios. In my husband’s accounts, he is 45% equities/55% fixed income as he is incredibly risk adverse, and I have have my IRAs invested at 60% equities/40% fixed income as I started way earlier than him, was an agressive investor in my younger years, plus I won’t start taking RMDs till 2021. Should we consider this money just one portfolio or consider it two? The problem we have now is that (I calculated) our annual growth together YTD is just over 3%.

Terry Says

It doesn’t really matter what you “call” it — it’s the money you have to support your lives together. And something big has changed: you are no longer contributing. So you can’t take advantage of lower prices if a bear market comes!
First, I don’t know how you calculated 3 percent growth! The stock market has been averaging 10 percent growth over the past 50 years, with dividends reinvested. And dividends have totaled about 40 percent of total return over the long run. And even the bond portfolio has contributed fixed income, which should be considered part of your return this year.

I think you’re at the stage where you need some professional advice. Please read my latest column on a new service that find you a qualified, vetted, fiduciary investment advisor in your area.

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