How to use inheritance and retirement income. Where to go, what to do?
I have a retirement plan that will pay me about $55,000 a year when I retire, and I recently inherited $1.25 million in an investment portfolio.
I am not young, 60, although I do have a younger wife and a young son.
I am not used to having money and unsure how to use what I now have to enjoy the time I have left.
I live in Southern California where a home is VERY expensive but there is no humidity, snow or bugs here and I enjoy wearing shorts all year long. My current home is small, NOT at all fancy and not all paid for but I would make about $100,000 if I sold it.
I have never lived in snow, and I don't know that I will be able to learn how to or will be able to deal with it as I get older.
Anyway, I would like some educated suggestions on how I could/should deal with this. Should I stay where I am? If I do, advice about how to enjoy my situation? OR, would you recommend another place in the USA where money would go farther and what I have could seem like more?
I do want to stay in the USA and I have a heart issue that will require the availability of good health care facilities within a fairly decent range sometime down the road.
I love the mountains or ocean views, lakes, trees, open space (my small backyard right now is my to go place) but I am open to suggestions.
I am not really looking for investment advice here as much as WHERE and HOW to "spend" some of that money on my/our life.
Answer to questions
Son is 9, Autistic, probably no university. :o(
Is the $55K per year a secure pension,
Pension is guaranteed for my life and I can sign away percentages, example 50% so wife would keep getting same amount for her lifetime. No SS but will get Medicaid.
About $100,000 savings
Including everything, mortgage, etc. we spend about all we make, $150,000
- A HunchLv 75 months agoFavorite Answer
Long gone are the days of "no humidity" in SoCal. For example: Pasadena is at 42% today.
You leave out a lot of information:
How young a son? 4 or 14? Do you need to stay in CA for the university options? If you child plans to go to college, than you would stay in CA... we have the best public university system....
Is the $55K per year a secure pension, so there is almost certainty you will receive it? How long does it last? 20 years, your lifetime, your spouses lifetime? Are you eligible for Social Security in addition to the pension?
What age do you want to retire? Do you have any other savings? How much do you currently spend per year?
In response to the comments:
You spend $150K per year and with $55K per year + $1.35M cash but want to retire immediately? Sure, if you want to be broke in 12 years, living off the $38,000 annual post tax pension amount... $38,000 is not a large amount of money to live anywhere on, even rural communities in low cost of living states.
Unless you drastically reduce your spending, there is no money to allocate money to savings for your wife.
- Please show this to all your union buddies, how your wife is going to end up with less with the pension than if she had Social Security.
You also mean medicare not medicaid.
20% of autistic individuals attend 4 year universities, about 50% are in some sort of college (trade school, community college, 4y uni) the first year out of high school.
- tiescoreLv 65 months ago
You need to be telling all this and more to a financial professional, preferably with a CFP designation, not Yahoo Answers.
- JenniferLv 65 months ago
Buy a condo, and invest in something that will bring in royalty income.
- RichardLv 75 months ago
You are asking far too many questions for Yahoo Answers. It would take me 10+ pages to answer your question - and I would have a bunch of additional questions to fill in the details.
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- JudyLv 75 months ago
Even though SoCal is really expensive, might be a good place for you. You can probably afford it, with your imcome, if you stay fairly conservative with the inheritance.
- PearlLv 75 months ago
i would just put it in the bank and then you'll have it when you decide to use it for whatever