Ask Terry Questions Should I not be using my IRA?

Should I not be using my IRA?

By Terry Savage on August 28, 2016 | Financial Planning / Retirement

I worked at a very large company in a middle management type of position for many years. About a year and a half ago due to downsizing my position was eliminated and I have not been able to land a new job. I'm 58 and have just over 100K left in my IRA to live on and looking for your thoughts on reinvesting or anything else that might help generate income from my IRA until I find a job. I also have a Group Variable Universal Life policy from my former employer that is about to lapse (my only life insurance) It will cost me $45 a month to keep it. Is this something I should do or are there better options in this point of my life?

Terry Says

You're in a tough spot.  You're way too young to actually retire -- yet you're thinking of using your retirement funds (maybe already have dipped into that fund.)  If you think it's tough to find income now, just imagine how tough it will be ten years from now to find a job!  Even if you get Social Security then, it won't be enough.  You'll need that IRA (and the future growth of the money in it) to survive in your later years. So you don't want advice about how to invest more aggressively.  The advice you didn't ask for is this:  You need to find a job, any job, NOW -- to cover your current living expenses.  You may have been in middle management before; but maybe you have to be in Uber now.  There is nothing "beneath" you now -- from substitute teaching ifyou have a special skill like accounting, to becoming certified to care for seniors who need assistance.    The law of actuaries says you're likely to live at least another 30 years -- and the next 10 years are going to be the ones that best allow you to earn money! As to your life insurance, if no one is depending on your income, there is little reason to carry life insurance except to pay for burial costs.  

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