OK, you can’t have everything — peace of mind about loss, protection against inflation, no extraordinary expenses (ie long term care) AND leave a legacy to your grandchildren, much as you would love to do that. You are describing the boomer retiree dilemma.
So first, you need to have a meeting with your advisory firm. If you trust them, and if they promise to put your interests first and fully disclose all fees, there is no reason to make a change. But — and I know this is a sales pitch — spend about $15 and buy my new edition of The Savage Truth on Money on Amazon (just published last month) because a I spend a lot of time addressing exactly these issues.
And you need some educating. Bonds are NOT the safe alternative to stocks. In fact, I’m guessing that in the next bear market you will lose as much money in bonds as in stocks (unless your bonds are short-term, low-yielding, government bonds). Read that chapter!
Second, there is a new way to buy Long Term CAre Insurance — by putting cash into an insurance policy that leverages the cash for long term care expenses should you need them. Investigate that now. Read the chapter or call MAGA LTC at 800-533-6242. Your worries about dementia are probably unfounded, but once you have insurance (and a death benefit if you don’t need the care benefits) you can stop worrying about the cost of care!
And, third, inflation is not a current concern — but a very long-term one. That’s why a small portion of your money at this stage should be in a diversified portfolio — the S&P 500 stock fund is fine and FREE!! You don’t have to pay a commission or management fees — so do it on your own at Vanguard or Fidelity. Remember, at only 3% inflation, the value of your money will be cut in half in 25 years.
And as a small part of your plan, consider a “deferred income annuity” — one that starts paying out at age 80 –if you are worried about longevity. Read that chapter!
See, it IS a pitch for my new book — and I can’t give you all the answers in this space!! Check my website for a direct link to it on Amazon.com. (I’ll restrain myself by not providing a link here!)