Safe Haven, if possible without...

[square1]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

 

[JPRambo]

I am going to watch this and maybe learn a lot. I am hoping to retire in 2 years - 2.5 years.

 

[TractorGuy]

I'm gonna take the money and run. Retiring 12/31. Don't have a lot saved and was planning to work a few more years but decided to go ahead and get out while the getting is good.

 

[Shaneard]

Sub'd for the results on this one. Don't have any money invested anywhere that someone else can take it from us. Most of ours is invested in things we can sell.

 

[Fossil Farm]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

If "taking a hit" means losing money in whatever investments you make, then keep it liquid to be safe. Liquid means less risk and less chance for big gains, but if it will make you sleep better at night, it is worth the less risk. Money markets, CD's, etc. are liquid and safe. Stock market type investments can make better returns, but add risk. You can diversify and put a small amount in stocks, just depends on your situation and how you want to go. Don't be persuaded by claims of big gains or you are "losing money" by not investing in XX or YY or inflation will eat your savings. Your life, your decision. You know your lifestyle and your expenses better than anyone, so take some time and determine what income you can live on.

 

[NorTracNY]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

I think Fossil's reply is pretty good. I'd suggest grabbing a finacial book from someone like Rick Edelman. You're thinking about your situation very differently than I would. You don't need all the money you currently have the day you retire. You need all the money to last your retirement.

If you haven't already, you should figure out a budget. Being 4-5 years out from retirement is probably a very good time to do this. You should be able to figure out what your expenses are now. The slightly tougher thing will be to determine how those expenses may change. Many cost will stay the same, but others will be very different. After you determine your expenses, you now know how much income you will need for retirement. Look at all your sources. Diversifying is important. You do lose buying power over time if you are not earning interest that is more than inflation. You don't need all your money to be liquid. You need enough money liquid for your needs and to buffer fluctuations in market downturns.

 

[Citydude]

...making a political statement, tell me were you would put your money in my scenario. ~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

It's good your asking the question now while your still planning to work a few more years. How was the performance of your investments over the last 5 years? No one can look into the future however past performance can give you an idea of what to expect. If your overly concerned, discuss it with a certified financial planner. I put my money in an IRA when I retired with a financial planner.

 

[KennyG]

If you feel you are marginal in assets, you need to plan to have control over expenses when you retire. Is your home paid for? Are you in an area where taxes should be stable? Start looking at the Medicare options and understand them. Depending on your medical history, Supplemental Medicare or Medicare Advantage could be the better choice (they are different).

If you are in good heath, see if you have the assets to delay Social Security until you are 70. To look at it morbidly, if you pass away early, you didn't need the assets, if you live long, you will have up to 32% higher SS payments - cost of living escalated.

If you are marginal on assets, you have to limit your investment risk. Look at bond funds and asset allocation funds that mix the investment. Make sure you stay with low overhead funds like Vanguard and Fidelity. Whatever you do, don't let investment advisors get you into annuities or insurance products.

If you are in good health and expect a long retirement, you need to maintain some stock market exposure. The last hundred years has indicated that if your horizon is 10 years or more out there, stocks will outperform other investments.

That's my view. I'm not an investment professional, but I'm retiring this year and have done well enough with investments that I can keep most in the stock market and not worry about the risk.

 

[k0ua]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

If you were my client I would tell you to put your money into an indexed annuity. Your money in an indexed annuity can go up or if the index (usually the S&P 500) goes down, you money will stay the same. You will never lose your original investment. Since you are so close to retirement you probably won't want to risk you money in any kind of variable security. Your rates of return are greater, but so are the risks. Even the poorest of the indexed annuity's rates of return are so much greater than the return of a CD from a bank that it is not even funny. A CD is the absolute worst "investment" you could possibly make.

* Full Disclosure statement
I am an independant insurance agent, NOT licensed in the state of Michigan and cannot offer you any financial advice.

 

[k0ua]

Whatever you do, don't let investment advisors get you into annuities or insurance products.

What is wrong with an indexed annuity? There is absolute zero risk, And many companies do not charge any fees or loads. The money either stays the same if the market performs poorly, or it goes up if the market performs well. He has about a 5 year lag before he needs the money, and a 5 year indexed annuity would be perfect for him so he will not have to pay surrender charges. It is a safe vehicle and an order of magnitude better than a CD.