Retirement options
Hi Terry-will be 59 soon. Have 400k in IRA rollover from divorce. Don’t have much in liquid assets. Have a house worth 500k so I am selling it. I was wondering what I should do to increase my padding for retirement. I’m concerned I won’t have enough at that time. I only make about 30k year so hard to contribute to my IRA. Right now, living paycheck to paycheck. I watch you on WGN news when you are on and appreciate any advice you could send my way. Thank you very much-
Terry Says
First, I’m glad you have even this much money. It’s tough to build savings on that low income.
First, let me ask about your decision to sell the house. Have you thought about the cost of alternatives, and do you really think you can save money on rent? Think carefully, as inflation is not only increasing home prices –but rents, as well.
Second, the real secret is to save more and the answer to that secret is to EARN more! Are you sure that you can’t take on a second job, part-time –and save every penny you make in a Roth IRA? That’s the side of your budget that is flexible, since at $30,000/year there isn’t much you can cut.
Also, WHERE is that IRA rollover now? Who is advising you n how to invest it? Are you sure they have your best interests at heart? Please write back with details — but I’m hoping it is somewhere low cost, like Vanguard or Fidelity. And that you aren’t paying fees to an “advisor.”
This thought comes to mind. And since I always speak my mind, let me say this (in context of your recent divorce) — There are plenty of nice men out there, and my grandmother always said “just remember, dear, it’s as easy to love a rich man as a poor man!” That would solve a lot of problems (and maybe create more — so be careful!).
