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Q&A: "I am 67 and my Wife is 64. How Should our Assets be Allocated and What Annual Outlay Should We Expect to Retire?"

Investment Retirement Income

Question:

I am 67, self employed, still working but on a reduced schedule. My wife is 64, planning on working two more years. How should our assets be allocated, and what annual outlay should we expect to retire. Thank you.

Answer: 

Folks in your very age bracket and circumstances will have a wide range of answers to the questions you've asked. The answer for you and your wife will depend on a lot more information, such as:

  • How much do you currently have in retirement and investment assets?
  • How are those assets currently allocated?
  • Do you plan to draw on those assets in the near term and, if so, will you be drawing heavily or do you anticipate stretching those withdrawals over your lifetimes?
  • How do you feel about fluctuations in the value of your investments and to what extent?
  • How much in social security or other pensions will you be receiving and when is the optimum time for you to begin drawing those?
  • What do you want to do in retirement? What kind of price tag will those activities have?
  • How much do you need to draw for your intended retirement lifestyle? How about special expenses or plans that go beyond living expenses?
  • How is your health? Do you expect to live to standard life expectancy or well beyond and need your retirement resources to support you for a longer period? (Is there longevity in your family background?)

You're beginning to ask the right questions, but nobody can give you a diligent, reasoned answer without a lot more information that's specifically tailored to you folks. 

Your best course of action would be to hire a good financial advisor who specializes in working with retirees and those on the doorstep of retirement. You'll want to find a fiduciary advisor who'll work for you on a fee basis, rather than someone who'll be compensated by selling you financial products. Your primary need at this point is retirement planning and projections, not financial products. Here are a couple of places to help you in your search:

Feel free to get in touch with me if you'd like to discuss your situation in more detail.