Retirement Planning - Lessons Learned

[RickB]

i know a few people that have done quite well with duke power. i wish i'd jumped in 40 years ago!

I have a large (by my standards) position in Duke. Easily the largest single holding I have at the stock position level.

 

[m7040]

People with IRS's are required to take minimum distributions starting at 4 percent at retirement and for many that is enough for living together with SS and medicare. Then if diversified and invested the fund has the potential to increase in value depending on investment strategy and market conditions. How much to have invested depends on what you need for your living standard. Full SS can be up to 4000 or so and couple this with 6000 to 10000 a month from minimum distribution from an IRA will provide a solid basis for most people. That still leaves the principal in the IRA if invested with the potential to increase in value beyond the 4 percent.

 

[RickB]

Other than the tax liability that RMDs generate they can have very little affect on the value of one's portfolio. There's nothing preventing the reinvestment of post tax RMD distributions in a taxable brokerage account or any other taxable investment vehicle.

 

[MoKelly]

Other than the tax liability that RMDs generate.

Reminds me of the saying “other than that, how did you like the play Mrs. Lincoln”?

 

[RickB]

Reminds me of the saying “other than that, how did you like the play Mrs. Lincoln”?

Point being the distribution can be reinvested. That seems to be overlooked, like the only option is to piss the money away.

 

[MoKelly]

Point being the distribution can be reinvested. That seems to be overlooked, like the only option is to piss the money away.

Very true - albeit at a 41% haircut after Fed and State taxes.

 

[MossRoad]

Point being the distribution can be reinvested. That seems to be overlooked, like the only option is to piss the money away.

No kidding. What are we gonna do with all that money? Between our SS and the mandatory distributions from our 401K's, we're going to be getting a lot more money than we make with both of us working. A LOT MORE. So, I expect to do quite a bit of home improvement, or, as my wife would want, move to a different home. We'll travel to see our kids and other places a lot more as well. But that still won't spend it all monthly. So I think we'll have to reinvest some of it on a regular basis.

Where to invest extra income after retirement is a topic that is rarely discussed.

 

[ultrarunner]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

PGE has certainly put shareholders through fits several times…

 

[ultrarunner]

My retired friends had income of 160k and spent it… he career phone company and she executive assistant to large HMO… she was 5 years older with health issues.

He passed within weeks of Pancreatic Cancer Diagnosis… was very active up at dawn with always several projects...

Overnight 2/3 income gone and they still had 450k mortgage… sad situation as no choice but to sell and rent far away near sister.

They took her retirement in cash and both had similar social security but his full pension stopped when he passed.

Quite a few I know opted for no survival spouse benefit to max income now…

Lesson learned… think about those left behind?

Added... in my circle I know lots of widows but few widowers... especially at advanced age...

 

[MoKelly]

Where to invest extra income after retirement is a topic that is rarely discussed.

If it’s extra income, why would investment choices be different after retirement v before retirement?

Same investment alternatives are available inside and outside retirement accounts.

MoKelly