Ask Terry Questions Retirement Investing

Retirement Investing

By Terry Savage on October 06, 2015 | Financial Planning / Retirement

Terry– i am 68, married,no debt, Soc. Sec and military pension coming in. Kids educated and gone, have long term care insur. I recently accepted $378890 from Alcatel-Lucent as a pension buyout. I have an IRA=203K with TrowePrice. and another with my wife totaling 266K invested with our local CU CFP.

My question? Where(what funds) would you put this money? I do not need it for at least 3-5 years. I am working part time sub. teaching and health is good.

Terry Says:  Well, this is a more specific answer than I can give — but I must say you seem to be in pretty good shape.  In such good shape, in fact, that I would have suggested you defer taking SS to age 70.  If you can still do that, it will “earn” you an additional 8% a year, with future cost of living increases on top of that higher base.

Since you’re already at T. Rowe Price, I would suggest going to them for advice about how to deal with this rollover.  They will factor in your need to take Required Minimum Distributions in a couple of years.    Show them all the cards in your hand — even though you aren’t giving them all your money, so they can give you specific advice.



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