Can I Go Fishing for the Next 25 Years and Forget About Work?, Ep #203

How's this for a headline? I'm 62, unemployed, living off my savings, and waiting on Social Security — 'Can I go fishing for the next 25 years and forget about work? It naturally caught my eye since there was fishing in the title! Today we'll check out this MarketWatch article and answer the headline's question as well as explore the additional recommendations the article mentions on ways to make retirement savings last. In the listener questions segment, I'll answer a complex question about borrowing against your home for a gift for a child. Once you're done listening please head on over to our annual listener survey to make sure you voice your opinions on the trajectory of the show.  Outline of This Episode [1:22] Can I go fishing for the next 25 years? [4:58] Financial advisors weigh in on this question [14:20] Should I take out $150,000 of my IRA to help my family buy a house? [19:35] Make your voice heard--go check out our listener survey! Is it time to forget work and go fishing? A recent Market Watch article caught my eye since it had fishing in the headline. The article opens with a question from a reader about his decision to quit his job early and go fishing for the rest of his life. The recent retiree did a great job saving for retirement and the MarketWatch author and I agree--he is absolutely ready to go fishing for the rest of his life. I enjoyed reading this article since it included other experts' responses, so I thought I would dig in and explore them a bit further and add my own 2 cents.  The dangers of leaving 'moldy money' lying around One commenter pointed out that the writer had a substantial amount of money in a savings account. He warned of the dangers of inflation by leaving that money in a low-yielding savings account.  I agree with these concerns. Unless there is a specific reason, you need to be wary of leaving 'moldy money' lying around in low-yielding accounts. This money will end up losing purchasing power over time due to inflation.  If you do have a substantial amount of money that isn't invested consider converting a portion of that savings into a Roth IRA. Listen in to hear how I disagree with one advisor's approach to investing for retirement.  Why the bucket approach works Another advisor suggested the bucket approach for asset allocation. This approach requires you to divide your assets into categories based on your withdrawal timeline.  The super-conservative category is the first bucket you'll dip into. The less conservative bucket has a longer time horizon, and the aggressive bucket won't be touched for a long time.  The bucket approach is a great idea and allows you to visualize your near-term assets and distinguish them from your longer, more volatile investments.  Recognizing the difference between the boring short-term assets from the more exciting long-term assets will help you keep your sanity when the market starts misbehaving.  To delay Social Security or not The next area that the article discusses is Social Security. The letter writer plans to wait until full retirement age in order to receive 100% of his Social Security benefit, but there is the possibility of delaying even longer until the age of 70.  Generally, my suggestion is to wait until age 70 to receive the maximum benefit, however, in this case, I don't think it is as important. Listen in to hear why.    1IVllfsq61rslNucXcD7  Resources & People Mentioned Boomer Benefits IRS page on gift taxes MarketWatch article  Annual Listener Survey Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify