Today I had my follow-up call with T. Rowe Price Advisory Services.
Here's the big picture rundown:
Based on my total annual savings (which they erroneously recorded as $37,500 annually instead of $31,000 annually), they recommend that in my 1st year of retirement, I withdraw $35,455 as income ($2,955 a month) instead of $43,000 a year ($3,583 a month). Every year thereafter I would adjust for inflation.
This is not too much of a biggie to me since I've been generally aiming at between $40 and $43K income in retirement.
They did not include Social Security income at all, so whenever I do decide to begin collecting SS, it will just make things that much easier.
They also did not factor in any inheritances, other than what is already in my accounts.
They are not suggesting many changes, only fine-tuning, in my overall and current asset allocation of 61% stocks, 25% bonds and 14% short-term investments.
They're recommending 60% stocks, 30% bonds and 10% in short-term investments. So they are mainly suggesting I move some money that's now in "cash" into bond funds, for upside growth potential.
Based on what I told them about my investment preferences, they're recommending I remain in a "balanced" portfolio.
Getting into more detail:
Domestic stocks: Increase my mid cap and international exposure by 3% each, decrease my sector/specialty exposure (a REIT and healthcare fund) from 6% to 0%.
Bonds: Decrease investment grade bonds by 4% and increase high Yield by 3% and international bonds by 6% (i currently have no exposure to international bonds or high yield).
Short-Term Investments: They recommend I decrease my short-term investments, which includes my CDs my online money market accounts as well as my Vanguard money market, by 4%. I would still have nearly 2 years of living expenses, or $80,000, in short-term investments after doing so.
She's going to make some final adjustments to her numbers based on my correcting her on my annual savings, along with new info on the 401k employer match I received (an extra $3536 which I guess I can count on annually) and then I'll be able to access it online again. The revised report will have suggested retirement withdrawal amounts each year, which includes adjustments for inflation, so I don't have to trouble my math-challenged brain.
They will also check in with me annually or I can contact them in the interim if there are any big changes to my financial life, like a layoff, inheritance being finalized, etc.
In other news: I met with local florist today and she chose 5 of the 8 pieces of art I brought to exhibit for sale in her shop. They are priced on the high side, so not sure how they'll do. Each time I draw up a little contract agreement, I do a better job of it! I also created some take-home bios for anyone who purchases a piece, so they can learn more about the artist.
Also followed up on the first real estate brokerage I contacted about long-term art exhibits in their offices. It probably wouldn't work there because they don't have extra wall space, but she asked me to send jpgs and prices anyway, which I did. She meets and knows a lot of people so she could possibly send them my way maybe.
In the meantime, I've decided that each week my goal will be to do at least one tangible thing to find new markets or further market my mother's art. It all takes a fair amount of time. So next week my goal will be to contact a 2nd real estate brokerage in my hometown, with the same query/offer about showing my mother's art. This idea had been suggested to me by someone at the art association who knew someone else who had done pretty well selling their art in this way. I would focus on the larger pieces for the brokerages since the smaller stuff can go in various gift shops/galleries.
I still have at least 2 more local shops in mind that I might like to approach. Also, the florist suggested, since I had mentioned how some of the art might appeal to interior decorators, of an interior designer who just set up shop in Sandy Hook Center. Couldn't find him online so will go down there in person to get the name.
I'm getting plenty of activity at my new suction cup window bird feeder, but it's driving Luther nuts as he lunges toward the birds each time he sees them. So they're a bit more timid that usual and I'm debating whether to move the feeder elsewhere.
My new windchimes, made out of grandma's silverware.
Good news on the retirement front
May 10th, 2016 at 12:59 pm