Rukh O'Rorke
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Post by Rukh O'Rorke on Aug 10, 2021 20:07:57 GMT -5
At one time I had 40% individual bonds but as interest rates fell this decreased a lot. I took an annuity that is about 30% of assets - it replaced the bonds. Yields about 8% with yearly increases, the principal (money I put in) will go to my heirs . I like the stability of the annuity payments plus the yearly increases and safe insurance company backingThe rest is primarily individual stocks with maybe 12% in ETFs I saved too much in tIRA and now am required to take RMDs that are more than we need along with SS So now just living on SS and annuity payments with rest of RMDs rolled into brokerage account. Buy stocks a few times/year, most recent was NovoNordisk - they have an obesity drug recently approved that may be a big seller along with their insulins. can you give more details - what company/product?
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cronewitch
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Post by cronewitch on Aug 10, 2021 20:34:10 GMT -5
I remember way back when, Crone used to say it was like magic how the $$$ accumulated lol. I still say that. I am up 191K in my investments so far this year. Making another 300K from ISO's estate this year. Still 100% equities and teaching niece and nephew and great nephew to invest in equities and feel the magic. They all asked me when the market crashed what to do and I said do nothing just wait.
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Rukh O'Rorke
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Joined: Jul 4, 2016 13:31:15 GMT -5
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Post by Rukh O'Rorke on Aug 10, 2021 21:03:50 GMT -5
I remember way back when, Crone used to say it was like magic how the $$$ accumulated lol. I still say that. I am up 191K in my investments so far this year. Making another 300K from ISO's estate this year. Still 100% equities and teaching niece and nephew and great nephew to invest in equities and feel the magic. They all asked me when the market crashed what to do and I said do nothing just wait. but I think you are able to live off of ss only if need be? or just a little extra? if I take ss at 62 it won't even cover my mortgage. I have no pension - not sure if you do - and very much on my own. I'm thinking of quitting every day, but super worried about a crash right when I do.
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CCL
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Post by CCL on Aug 10, 2021 22:28:23 GMT -5
Ruhk, what about your business? Could you increase your income by working on that part-time? Or have you already decided against it?
If I remember correctly you have a big, older house. Is downsizing an option at all? Selling our big house and buying this smaller one really made a difference in our budget.
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Rukh O'Rorke
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Joined: Jul 4, 2016 13:31:15 GMT -5
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Post by Rukh O'Rorke on Aug 11, 2021 0:31:20 GMT -5
Ruhk, what about your business? Could you increase your income by working on that part-time? Or have you already decided against it? If I remember correctly you have a big, older house. Is downsizing an option at all? Selling our big house and buying this smaller one really made a difference in our budget. Yes, still have big old house. Not ready to sell but can do at some point if need be. Still doing Rukh Inc. plan to continue for as long as I can. Don’t want to count on it overmuch. Just two clients still and could lose them.
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plugginaway22
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Post by plugginaway22 on Aug 11, 2021 6:25:16 GMT -5
Love reading these responses, we are too heavy in cash because of job circumstances and ages. I look forward to increasing our stock % once dust settles.
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Value Buy
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Post by Value Buy on Aug 11, 2021 8:30:08 GMT -5
I really do not feel comfortable posting our investment portfolio, but we are both in our early 70's. I do not believe in a bond investment, but as most stock mutual funds include some bond component, yes we are in bonds in a small way. Our IRA's include two at Vanguard, and one at Fidelity and comprise a little over two thirds of our stock investments. We have positions in two major oil companies (I know, this is a no-no these days) and have added to these positions to increase dividend returns. One electric/ ng utility, one production/wholesaler, one retail pharmacy, very small position in one major tech company and one steel mill (newish position this year). Sold out all savings bonds last four years spreading them out to keep taxes reasonable. Wish we had seen Moderna as a good investment! Now planning to guarentee a reasonable dividend portfolio for our future years, and will stop all drip programs and take the cash. There are a few great companies paying 4 to 5% range and I do not think we have to worry about major stock price decrease. Looking to capture about $15,000 a yr in dividends up from $11,000 this year on our personal stock positions. With IRA mimimum withdrawls added in we should be fine. Although I disagree somewhat with this list, some here might find it interesting, and could be a starting point for some. www.msn.com/en-us/money/savingandinvesting/7-best-dividend-stocks-for-a-big-fat-monthly-income-check/ss-AAN9MKR
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jerseygirl
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Post by jerseygirl on Aug 11, 2021 8:42:08 GMT -5
Rukh my annuity is with Midland National, Jerseyguy has one also bought later that yields 7% and principal also goes to heirs. I take monthly distributions he just leaves it He transferred money he had in a CD that was getting 0.5% ? so 7% is a good deal.
Our financial advisor did research and recommended these Yes you do tie up money but we can (on top of monthly distribution) remove 10% year without penalty for 10 years then can withdraw all wo penalty Since we have other resources we have no plans to withdraw beyond monthly or just leave to cumulate
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Rukh O'Rorke
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Joined: Jul 4, 2016 13:31:15 GMT -5
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Post by Rukh O'Rorke on Aug 11, 2021 9:20:18 GMT -5
Rukh my annuity is with Midland National, Jerseyguy has one also bought later that yields 7% and principal also goes to heirs. I take monthly distributions he just leaves it He transferred money he had in a CD that was getting 0.5% ? so 7% is a good deal. Our financial advisor did research and recommended these Yes you do tie up money but we can (on top of monthly distribution) remove 10% year without penalty for 10 years then can withdraw all wo penalty Since we have other resources we have no plans to withdraw beyond monthly or just leave to cumulate Thank you! will take a look at this.
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Rukh O'Rorke
Junior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 9,985
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Post by Rukh O'Rorke on Aug 11, 2021 9:29:28 GMT -5
I really do not feel comfortable posting our investment portfolio, but we are both in our early 70's. I do not believe in a bond investment, but as most stock mutual funds include some bond component, yes we are in bonds in a small way. Our IRA's include two at Vanguard, and one at Fidelity and comprise a little over two thirds of our stock investments. We have positions in two major oil companies (I know, this is a no-no these days) and have added to these positions to increase dividend returns. One electric/ ng utility, one production/wholesaler, one retail pharmacy, very small position in one major tech company and one steel mill (newish position this year). Sold out all savings bonds last four years spreading them out to keep taxes reasonable. Wish we had seen Moderna as a good investment! Now planning to guarentee a reasonable dividend portfolio for our future years, and will stop all drip programs and take the cash. There are a few great companies paying 4 to 5% range and I do not think we have to worry about major stock price decrease. Looking to capture about $15,000 a yr in dividends up from $11,000 this year on our personal stock positions. With IRA mimimum withdrawls added in we should be fine. Although I disagree somewhat with this list, some here might find it interesting, and could be a starting point for some. www.msn.com/en-us/money/savingandinvesting/7-best-dividend-stocks-for-a-big-fat-monthly-income-check/ss-AAN9MKR Thanks, I have one of the stocks in that list, might consider one or two more. Curious as to what you disagree with about the list? I have detailed my dividend portfolio in the investing perspectives board. Dripping my way to financial independence! Maybe..... I haven't updated that in while, well - just a month or two I guess - but will soon I suppose, maybe wait until sept 1? not sure what makes most sense. I was initially hoping to use dividend stocks instead of bonds for stability, but I'm so far not seeing that they are that much more stable. Worried to stress test it in a hard downward market without some other safe guards in place. Hence - this thread to see what others are doing. I do feel like bonds are just a losing proposition these days.
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CCL
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Joined: Jan 4, 2011 19:34:47 GMT -5
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Post by CCL on Aug 11, 2021 11:01:05 GMT -5
I've held Fidelity Balanced Fund since forever. It had a good balance of stocks/bonds for me when I started out and doesn't fluctuate as much as most all-stock funds, so I just held on. I've done well with it. It pays some in dividends which I normally reinvest. You might take a look at something similar.
Another fund I've held forever is Fidelity Strategic Income. It pays monthly dividends which I like, although I reinvest all those, too.
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tallguy
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Post by tallguy on Aug 11, 2021 12:54:37 GMT -5
I retired early several years ago. I am basically 100/0 in my asset allocation. I have never been psychologically able to do bonds or bond funds, and don't think that will ever change. Because I am limiting my income for tax purposes, I also don't seek out dividends in my taxable account. There are some, of course, but I would ideally keep that number low. Because I don't know for certain how much they (and CG distributions) will be, and they are generally largest at the end of the year, all they really do is complicate my planning with respect to exactly how much I can withdraw or convert from my IRA without exceeding my self-imposed income limit. I am pretty much locked into them now though, since selling the positions would create a large CG hit that I don't want to take.
It is a huge benefit to not really need the money since I keep expenses low, and to have already done significant Roth conversions to be able to take money tax-free if I desire without ruining my tax planning. All in all, I am very happy with where I ended up, particularly since I was never highly paid to begin with. One thing I always try to emphasize in talking to people is that you want to give yourself options. Put away as much as you can, preferably in a mix of taxable, tax-deferred, and tax-free accounts. You want to be able to choose your course of action, not let circumstances force you into one.
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CCL
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Post by CCL on Aug 11, 2021 13:55:39 GMT -5
Yes. Keep your expenses low. We were never high-income, either. I stayed home with the kids. I've always kept expenses down and that's how we retired early.
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buystoys
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Post by buystoys on Aug 11, 2021 14:27:12 GMT -5
Agree that expenses are key. DH and I both made decent but not outrageous incomes for NY. It was enough to live comfortably on, but not unless we controlled our expenses. That put us in a good spot when we had to retire. Our expenses were already manageable so we can live off SSDI and DH's pension if we have to. We have been using our IRA withdrawals to do work on the house for the past seven years. We only have a couple more major projects to do, so if the markets go down, we just don't withdraw money and don't do a project that year. We couldn't live like that if we didn't have our expenses in line.
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Gardening Grandma
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Post by Gardening Grandma on Aug 13, 2021 23:26:51 GMT -5
We are approx 60/30/10 (bond funds/ stock funds/ CDs). In our 70’s (he is 72, I’m 76). I learned back in 2007 that I have a low tolerance for the roller coaster ride. Basic living expenses are covered with pensions/SS
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dondub
Senior Associate
The meek shall indeed inherit the earth but only after the Visigoths are done with it.
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Post by dondub on Aug 14, 2021 0:34:28 GMT -5
We are approx 60/30/10 (bond funds/ stock funds/ CDs). In our 70’s (he is 72, I’m 76). I learned back in 2007 that I have a low tolerance for the roller coaster ride. Basic living expenses are covered with pensions/SS Been missing you.😎
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dondub
Senior Associate
The meek shall indeed inherit the earth but only after the Visigoths are done with it.
Joined: Jan 16, 2014 19:31:06 GMT -5
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Location: Seattle
Favorite Drink: Laphroig
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Post by dondub on Aug 14, 2021 9:46:40 GMT -5
We are approx 60/30/10 (bond funds/ stock funds/ CDs). In our 70’s (he is 72, I’m 76). I learned back in 2007 that I have a low tolerance for the roller coaster ride. Basic living expenses are covered with pensions/SS Great year for our PNW gardens.
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Gardening Grandma
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Post by Gardening Grandma on Aug 14, 2021 9:56:13 GMT -5
We are approx 60/30/10 (bond funds/ stock funds/ CDs). In our 70’s (he is 72, I’m 76). I learned back in 2007 that I have a low tolerance for the roller coaster ride. Basic living expenses are covered with pensions/SS Great year for our PNW gardens. It is, indeed. We ate the first tomato yesterday. Every summer the tomatoes ripen earlier and earlier. As much as I enjoy them, I know it’s due to climate change……
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