retired and need advice soon

frankleebroke · #1 (**permalink**) 03-23-2009, 04:45 AM

I have been retired for about 7 years, living happily off distributions from my IRA. Like many people, the stocks in my IRA have really taken a beating. I have been way aggressive with equities at about 85%. These are individual stocks, not mutual funds.

Now for the question. Should I just hold on until everything comes back? Or should I re-allocate, maybe 50% in a good mutual fund, and the rest in bond funds or something with low risk? I mainly want to be there for the recovery.

I can live off my savings for 2 years and give my IRA time to recover somewhat. Would that be a good idea. Being retirement age, I don't have the time that a younger person would have.

I can't afford to make many more mistakes. Any helpfull ideas out there would really be appreciated.

Frank

singlemom · #2 (**permalink**) 03-24-2009, 01:16 AM

Frank, have you thought about maybe getting a part time job to help supplement your income needs for a little while. Maybe something you like to do and where as you don't "need it" maybe be a little picky on what you take. This way you can avoid draining your savings.

just a thought....

User Name · #3 (**permalink**) 03-25-2009, 07:41 PM

Quote:

Originally Posted by frankleebroke

I have been retired for about 7 years, living happily off distributions from my IRA. Like many people, the stocks in my IRA have really taken a beating. I have been way aggressive with equities at about 85%. These are individual stocks, not mutual funds.

Now for the question. Should I just hold on until everything comes back? Or should I re-allocate, maybe 50% in a good mutual fund, and the rest in bond funds or something with low risk? I mainly want to be there for the recovery.

I can live off my savings for 2 years and give my IRA time to recover somewhat. Would that be a good idea. Being retirement age, I don't have the time that a younger person would have.

I can't afford to make many more mistakes. Any helpfull ideas out there would really be appreciated.

Frank

Since you have already have taken the hit, you would be better off leaving things the way they are and taking the rebounds when they come. The goal is to buy low, sell high, not buy low and sell lower. After you get back up, then start shifting funds to safer investments such as bonds. Mutual funds are they same as buying individual stocks only your buying a lot of little pieces of a lot of companies. In retirement, you should be focusing more on capital preservation and not risking so much. Getting a part time job is not a bad idea either. I'm sure it may not be easy given the current economy but you might as well start looking now and be on the safe side. You might enjoy it. If not, then enjoy being retired. Either way, best of luck!

frankleebroke · #4 (**permalink**) 03-26-2009, 05:24 AM

Quote:

Originally Posted by singlemom

Frank, have you thought about maybe getting a part time job to help supplement your income needs for a little while. Maybe something you like to do and where as you don't "need it" maybe be a little picky on what you take. This way you can avoid draining your savings.

just a thought....

Hi Singlemom: Thanks much for responding to my post. I have done several one year stints of part time work since I retired. It worked great until my wifes spine problems got bad. So now Iam a stay at home guy (AKA=Caregiver) Retirement allows me to do this, for which I am thankful.

chuckmanley83 · #5 (**permalink**) 03-27-2009, 12:08 PM

Frank, perhaps there is a way you could get a part time job working from home.

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