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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (27886)	9/4/2017 1:45:07 PM
From: maverick61	1 Recommendation Recommended By rnsmth Respond to of 34328

I'm guessing you have already answered two of the biggest questions of the average retiree, how much do we need and where is it coming from, and healthcare costs. yes - I have been smart to have saved early and often and blessed to have generated reasonable returns so I am comfortable with the how much we need question being answered. In fact, just to double check my thinking, since withm y current job I have a 403b with TIAA-CREF, they have a very nice program where you can meet with their financial advisors for free. Now my background in finance and I have always made my own investing decisions but it was good to sit down with them, have them run scenarios based on our current assets and projected expenses and confirm my calculations that we should have what we need. As to healthcare - yea, that is the biggest unknown as to future costs but in my planning I believe I left sufficient cushion ($12K a year which TIAA CREF bumped up to $20K annually) to cover us. I bring that up because you haven't mentioned if your income when you retire will cover expenses without tapping accounts right away. I "retired" the first time at 49, only to find that I worried about money. I can tell you, that isn't retirement. Luckily, the two people who tried to replace me couldn't stand the pressure, and I got a mulligan at the same pay. I made sure where we stood before the second time, with plenty of cushion. Can't say I didn't think about money, but that's a big difference from worrying about it. Once we both retire, because we don't have traditional pensions, we really won't have income coming in other than from dividends / interest generated. So the plan would be to tap our accounts and start drawing on those for the difference. Right now our assets are mixed with 2/3 in retirement tax deferred accounts and 1/3 in regular investments / savings. In 2 years, my wife would start to draw her SS - and my plan is to do the same at 62. I was pretty cautious when I retired at 54. When it came to money I felt sure we would need, I bit the bullet and went with CDs, while keeping a high balance in a credit union savings account where the wife continued to have money automatically payroll deposited until she retired. I knew when she retired that for the first time ever, money would be flowing out for a few years, instead of accounts constantly rising. A bond fund or bond CEF wouldn't have been the same to me. My thinking is to be pretty cautious as well. Right now we probably have 2 or 3 years of living expenses in liquid savings accounts paying 1.1% or so. I may look at a CD option for funds that would not be needed for more than a year but haven't done so yet. The biggest thing for me is changing the mindset - from a saver and investor building up my accounts now to positioning them to draw down on them If I felt the need to add bonds, individual is the only way I would go. As long as you don't have to cash early, you know what you have. Interesting - you and a couple others mentioned that. Since I have not been well versed in bonds I figured the fund or CEF option would help with the risk and diversification. But I understand what you are saying with an individual bond, you hold to maturity you know what you are getting back. I will have to start doing more research in this area Thanks !