What % of available wealth should be invested?
This is multiple choice question!
I am sure answer will be different depending on my age and circumstances.
We are married, no children, retired , own condo is paid for, we have enough social-security and pension benefits that we don’t need to touch our savings. We are 76/78 years old; both bought long term care insurance at age 50 — and still paying an affordable premium.
So we have savings. It’s mostly CD’s and money-market accounts and stocks.
1/3rd is IRA CDs;
1/3rd is non-IRA CD,
1/3rd is invested:
… 1/6th is IRA-account stocks,
… 1/6th non-IRA-account stocks.
To explain the magnitude of this cash and investments, it’s total could buy us two more condos or a very beautiful home on the burbs.
The QUESTION is:
Should we be investing more than just 1/3rd of this discretionary wealth?
My spouse is comfortable “holding 2/3rd cash; I think we could be investing more, but I have no idea how much more?
Terry Says
What an enviable position! YOu’re in good shape — BUT a lot depends on what you want to do with the rest of your life! I have no idea how old you are, whether you want to spend all this money in your retirement years, and ifnot, who you will leave the balance to (a favorite charity, individuals) — and so many more questions about your lifestyle, and your personal attitudes toward money and risk.
(And I DO hope you have named beneficiaries for your IRAs, and created an estate plan — revocable living trust — for your non-IRA assets, as well as healthcare powers of attorney.)
You — more than most people who write to me — could benefit greatly from a discussion with a trusted FIDUCIARY financial planner — who will cover these issues and many more, and might help you identify your true desires for your remaining years.
I always recommend the Wealthramp process, because it is the only way I can be sure you will be matched with a trusted FIDUCIARY advisor. Here’s a link to the explanation: https://www.terrysavage.com/pam-krueger-wealthramp/
If you go through the process — even just a first meeting with a matched advisor — please do write back to me and let me know your thoughts. I’ll be very interested to see what happens!
