We are 70 years old. We have no debt, no shares and $ 275,000 savings. Do we have trouble?

I’m approaching retirement. My wife and I are 70 years old. We have no debt, our house is paid and our vehicles are paid. Our home is worth $ 450,000. Our latest vehicle is one year and we will eventually reduce one car. We have just over $ 275,000 in high -cost savings and CDs. Terrible close to retirement. It is especially difficult to see others who retire so much money. We will have $ 4,300 per month in social security. Is it enough for us to retire? What should we do to keep our retirement financially stable?

Soon withdraws

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You compare yourself to others, and it is a cup game. Compare and do not wear, as the old saying says.

Yes, some couples will retire and tell you how they are happy to have X, Y and Z. They will inform you of their plans to travel to Europe or Asia once or two, join the local country club – or move to the country’s club – and publish photos of their opinion on the golf course. They don’t necessarily try to make you feel bad, but they can try to make sure they are fine. They probably compare themselves to a couple who has even more than they are. And that continues. The comparison game never ends. If you have $ 1 million, your neighbor will have $ 2 million. People sometimes feel better in search of others who have less than they and tell them everything about it.

Your $ 4,300 per month in social security, given your expenses, will get as much as you need to go. Your house is paid. Mark! You don’t have a credit card debt. Mark! We hope you have your own health. Mark! You can live modestly while retirement and live comfortably. There are many ways to spend leisure time that don’t cost a lot of money. You can travel and rent your home Airbnb Abnb or Exchange House, rent a camper minibus, join the library and local bridge club and play tennis in the public park. Find out what you need and what you can afford. If your costs are less than $ 4,300, you are in good shape.

You have 100% of your pension fund cash. You do not mention IRA or 401 (k) S or Index funds. May not damage as much as 30% of your cash in the stock market. It is scary to use your word, do it in the 70s and bull market, when analysts say the evaluations are already stretched while others are worried about tariffs and Ai bubble. The average average dollars includes a fixed amount of money in investing over time. Increase your investment with both US and international Blue-Chip shares. If your investment on average has been a historic 7% annual return, after inflation, it will overcome your high -income accounts and CDs.

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As an alternative, invest in a balanced or dividend growth fund such as the Vanguard Wellesley Revenue Fund VWINX, which will invest 60-65% of your assets in investment fixed-income securities and the rest of the dividend plain shares. There are other similar variants, including the Rowe Price pension, a balanced fund, a activated fund that is in a portfolio of about 40% of stocks and 60% of bonds, and American funds conservative portfolio portfolio portfolio, which contains about 49% of the US and non-US stocks. equivalent.

In terms of context, 2022 The S&P 500 SPX decreased by 18%, 2023. Received 26%, then 2024. Increased by another 25%, while historical data indicate that the bear’s markets were just over 20% of the year over the last century. So the long -term impulse shows up. You have a decade or two or more. During economic and market uncertainty, analysts often offer promotions of health care, utilities and consumer steps, in addition to Midcap and low -capital shares, bonds, cash and non -US stakes. Your goal is not the time on the market, but to get income and maintain an emergency fund for medical expenses that are not subject to Medicare.

At first glance, your social security will be a lion’s share of your income, but at least part of your retirement will provide additional income. The idea is to remove less than or even the same as your investment earns in the fund. For example, if you removed 4% of your $ 275,000 pension fund, it would be equivalent to $ 11,000 a year or $ 917 a month. Combining with your social security, this increases your monthly income to $ 5,200 per month. You also have a $ 450,000 assets you could reduce if you ever needed money, and / or consider the reverse mortgage if you felt stretched as current assessments.

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