Author Topic: Only 9 more days...  (Read 3841 times)

earlybird

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Only 9 more days...
« on: June 10, 2013, 02:52:18 PM »
Until my CD matures. A little background about me. Widowed in 2009 at age 45, luckily had life insurance so I didnít lose my home. I paid it off. Put most of the rest in laddered CDís. The last matures in 9 days. It is worth $188K. Iíd like some advice on what to do with it now.

I was lucky enough to find a wonderful man again and we recently married. Have thus far kept our finances separate but may join them at some point. I sold my house and we live in his now. My only expenses are food and gas. He pays everything house related.

I work 30 hours a week as a nurse, make $30/hr, contribute $17,500 to my 401K, get an employer match of 8.9%, and I put in $5K/yr to my Roth IRA. Here are my own current assets (I have no debt):

Checking account (earning .25%)   $1,064
Savings account  (earning .75%)   $80,599
Money market account  (earning .75%)   $116,330
CD  (earning jack shit) $188,500

Retirement accounts  (Vanguard IRA Target Fund 2030)   $102,929
Retirement accounts  (Vanguard Roth IRA Target Fund 2030)   $31,877
Retirement account (Vanguard Employer Plan Target Fund 2030)   $21,110

I will also receive maybe $65K when my recently deceased parentís home sells.

2010 Subaru worth about $20,000

I seem to be paralyzed with how to invest my CD and also the money gained when the house sells. Do I invest in Vanguard index funds? Iíve read every MMM post and know that I canít just let it earn a paltry amount in a CD. I also know that I have way too much just sitting in my MMA and emergency savings account. My current net worth is over $600K and yet Iím afraid that I wonít be able to support myself should I lose another husband, who by the way is in great health.  Iím tired of working my ass off as a nurse for very little praise and I want to retire ASAP so that I can thoroughly enjoy my life and new husband.

All advice welcome and appreciated! Thanks!!!



jpo

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Re: Only 9 more days...
« Reply #1 on: June 10, 2013, 03:22:08 PM »
I would drain your Money Market and most of your Savings, plus the CD, plus the house money, and do this.

You don't need a large emergency fund, and the bulk of your net worth is slowly eroding from inflation.

earlybird

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Re: Only 9 more days...
« Reply #2 on: June 10, 2013, 05:33:00 PM »
Thanks jpo! I'll re-read Mr. Collins' stock series.

Hotstreak

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Re: Only 9 more days...
« Reply #3 on: June 10, 2013, 09:27:51 PM »
If all you need to buy is food and gas, you can retire today.  Like, give notice at work tomorrow.  A 4% annual withdrawal rate gives you $2000 per month for your expenses.  Use less than that and allow the rest of the money to work in an investment account, growing faster than the rate of inflation, to provide you a larger and larger cushion as you age.

If you do chose to retire very soon, I recommend keeping a few thousand in checking, 20-30k in savings for emergencies, and the rest split among stocks & bonds (ratio depends how much risk you are willing to eat, and how important it is for you to grow the portfolio).

If your husband unfortunately passes away, and you inherit nothing from him (house included), would you be comfortable with 24k per year?  If not, figure out how much you need, and save until you can safely withdraw that amount.  PS: Your current income minus savings in to 401k/Roth, you have 24k per year currently.  If you retire your taxes may be even lower than now, meaning you can actually have more money per month forever than you have now by working.

earlybird

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Re: Only 9 more days...
« Reply #4 on: June 11, 2013, 08:55:44 AM »
Thanks RobbyJ! Appreciate your advice. As an FYI for anyone reading this thread, I posted same scenario and am receiving additional advice from JC at:

http://jlcollinsnh.com/?page_id=3797?replytocom=94832#respond

He asked that I put in a link to his place so that others needing similar info could check both places. Great idea!