Author Topic: Advice for my dad (mid 50's) who never saved for retirement  (Read 838 times)

degrom7

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Advice for my dad (mid 50's) who never saved for retirement
« on: December 09, 2018, 06:42:15 PM »
My father has never had a retirement account. He's in his mid 50's and will start contributing to an IRA and 401k. He'll be working for at least 10 more years. He has the mortgage paid off, no car, and a decent savings. For his IRA, do you recommend it all in VTSAX like what JL Collins suggest or a mix of that and VBTLX? What percent?

What about his 401k? I don't know what it uses and the choices yet but how should that be allocated? Same as IRA?

Thanks everyone!

COEE

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Re: Advice for my dad (mid 50's) who never saved for retirement
« Reply #1 on: December 09, 2018, 07:03:57 PM »
Step #1 - has he asked you for help?  If so, then continue, if not quit 'helping'.

Step #2 - Assist your dad in creating an Investment Policy Statement.  I also recommend reading Charles Schwab's Guide to Financial Independence*.  This will help your dad understand his risk tolerance and need to take risk so that he can find an Asset Allocation that works for him.

If your dad is 50 and has no debt and substantial savings, he's doing okay.  It sounds like he's probably mostly in cash and cash-like investments at this point.  It just means his risk profile is low.  Understand that his risk profile should probably continue to be lowish while he's starting to approach retirement.

* - Here's a newer version that I can't recommend because I haven't read it yet.

markbike528CBX

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Re: Advice for my dad (mid 50's) who never saved for retirement
« Reply #2 on: December 09, 2018, 07:18:44 PM »
PTF  Because I'm about to advise an older couple in a similar situation.