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Retirement in a few years

By Terry Savage on December 07, 2018 | Chicken Money

With the volatility of the market, I have heard you say that if we plan to retire soon that we need to make sure we have enough of our savings safe. Can you be more specific as to 1) maybe what percentage that might be and 2) what that looks like ( remove it from the stock market entirely and put into savings?) Right now my husband hopes to retire in 3 yrs at age 62. I am on disability. We have just under $200,000 in investments with Edward Jones and about $ 50,000 in the bank. We have no debt, not even a mortgage. thanks

Terry Says

If the money at the brokerage firm is not inside an IRA account, I would definitely REVERSE your percentages!  I would have at least $200,000 in cash — given your age and circumstances — and only about $50,000 in the stock market!

The “cash” I would put into U.S. Treasury bills — Read this article.  You’ve done a good job of saving so far, and I think you would want to keep the larger amount completely safe.  I know that’s very conservative — but if you were my family, that’s exactly what I would have you do.  Now.

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