How to invest for the next 20 years?

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Topic Author
Boulous
Posts: 82
Joined: Sun May 24, 2020 3:42 pm

How to invest for the next 20 years?

Post by Boulous »

Hi,
I am 70 years old and very healthy, I have no mortgage or any debts, I sold my rental property for $737,500 I should net after taxes paid around $600,000.
I need to earn $2500 a month from the $600,000, I need $600,000 to last me for 20 years plus, can't afford to take any high risks with it. I have a modest Vanguard ETF account $23,000 which has done very well( it's up $6000, I opened a few days before the Brexit, its 100 percent ETF Stocks.
The total stock market, emerging market ETF, dividend ETF, and foreign ETF

Thanks
Boulous
livesoft
Posts: 86077
Joined: Thu Mar 01, 2007 7:00 pm

Re: How to invest for the next 20 years?

Post by livesoft »

It reads like at least some of the $600,000 should be used to purchase a Single-Premium Immediate Annuity (SPIA) and all the consequences that go with that. Have you done any research on those financial products?

It is also possible that you might need to re-think your need for $2500 a month.
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7eight9
Posts: 2406
Joined: Fri May 17, 2019 7:11 pm

Re: How to invest for the next 20 years?

Post by 7eight9 »

A $437,000 SPIA would probably pay around $2,500/month.

You can play around with this calculator to get an idea of payouts --- https://www.immediateannuities.com/a/gu ... gJTWPD_BwE
I guess it all could be much worse. | They could be warming up my hearse.
macher
Posts: 275
Joined: Tue Apr 14, 2020 5:21 pm

Re: How to invest for the next 20 years?

Post by macher »

Boulous wrote: Fri May 29, 2020 9:52 am Hi,
I am 70 years old and very healthy, I have no mortgage or any debts, I sold my rental property for $737,500 I should net after taxes paid around $600,000.
I need to earn $2500 a month from the $600,000, I need $600,000 to last me for 20 years plus, can't afford to take any high risks with it. I have a modest Vanguard ETF account $23,000 which has done very well( it's up $6000, I opened a few days before the Brexit, its 100 percent ETF Stocks.
The total stock market, emerging market ETF, dividend ETF, and foreign ETF

Thanks
Boulous
What are your living expenses per month?
Topic Author
Boulous
Posts: 82
Joined: Sun May 24, 2020 3:42 pm

Re: How to invest for the next 20 years?

Post by Boulous »

$2500/momth
deltaneutral83
Posts: 2455
Joined: Tue Mar 07, 2017 3:25 pm

Re: How to invest for the next 20 years?

Post by deltaneutral83 »

7eight9 wrote: Fri May 29, 2020 10:04 am A $437,000 SPIA would probably pay around $2,500/month.

You can play around with this calculator to get an idea of payouts --- https://www.immediateannuities.com/a/gu ... gJTWPD_BwE
I did a quote and life was less monthly payout than life &10 ??
mhalley
Posts: 10432
Joined: Tue Nov 20, 2007 5:02 am

Re: How to invest for the next 20 years?

Post by mhalley »

I agree that it is difficult to get that much from the 600k and that an SPIA might be a good option, with the remainder invested in 30 to 50% stock asset allocation. Read up on the spia here.
https://www.bogleheads.org/wiki/Immediate_fixed_annuity
According to immediateannuities.com, 300k would get you about $1718 a month, or $20616 a year. 4% of 300k is $12000, or $1000 a month, giving you $2718 a month. Course that is not inflation adjusted.
https://www.immediateannuities.com/a/gu ... oAQAvD_BwE
Yes, that is the way annuities work. If you buy the annuity and drop dead the next day with the regular one, then the ins co keeps all the money. If you buy the period certain and drop dead the next day, the insurance co has to pay 10 years of payments, so they keep less money, so they give you less.
Last edited by mhalley on Fri May 29, 2020 10:16 am, edited 1 time in total.
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galeno
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Joined: Fri Dec 21, 2007 11:06 am

Re: How to invest for the next 20 years?

Post by galeno »

Play with firecalc.com.
KISS & STC.
macher
Posts: 275
Joined: Tue Apr 14, 2020 5:21 pm

Re: How to invest for the next 20 years?

Post by macher »

Boulous wrote: Fri May 29, 2020 10:11 am $2500/momth
Do you get Social Security?
7eight9
Posts: 2406
Joined: Fri May 17, 2019 7:11 pm

Re: How to invest for the next 20 years?

Post by 7eight9 »

deltaneutral83 wrote: Fri May 29, 2020 10:13 am
7eight9 wrote: Fri May 29, 2020 10:04 am A $437,000 SPIA would probably pay around $2,500/month.

You can play around with this calculator to get an idea of payouts --- https://www.immediateannuities.com/a/gu ... gJTWPD_BwE
I did a quote and life was less monthly payout than life &10 ??
I put in 70 / Male / Texas / $437,000 / immediate start ...
2,502 Life
2,474 Life & 10 years certain
2,193 Life & cash refund
I guess it all could be much worse. | They could be warming up my hearse.
hulburt1
Posts: 510
Joined: Tue Jul 15, 2014 9:17 pm

Re: How to invest for the next 20 years?

Post by hulburt1 »

You have SS.. You need 30000 a year. I would and did myself put 5 years in cash. (150000) the rest would be in S&P. I look at my S&P once a year and see how it did and move the increase to my MM. your tax's will be 0. Your S&P should kick out about 27000 a year. You don't have to move all, If you made a killing just let in ride mines the 30000. If you get SS you don't need 30000 every year.
hulburt1
Posts: 510
Joined: Tue Jul 15, 2014 9:17 pm

Re: How to invest for the next 20 years?

Post by hulburt1 »

If you divide 600000 by 20 you will have your money 30000 a year. Do a annuity they have it plus they will be giving you your money to live on. If you die who gets the money? and can you get that money with out cost?
Topic Author
Boulous
Posts: 82
Joined: Sun May 24, 2020 3:42 pm

Re: How to invest for the next 20 years?

Post by Boulous »

macher wrote: Fri May 29, 2020 10:16 am
Boulous wrote: Fri May 29, 2020 10:11 am $2500/momth
Do you get Social Security?

"1730 per month"
hudson
Posts: 7119
Joined: Fri Apr 06, 2007 9:15 am

Re: How to invest for the next 20 years?

Post by hudson »

Boulous wrote: Fri May 29, 2020 9:52 am Hi,
I am 70 years old and very healthy, I have no mortgage or any debts, I sold my rental property for $737,500 I should net after taxes paid around $600,000.
I need to earn $2500 a month from the $600,000, I need $600,000 to last me for 20 years plus, can't afford to take any high risks with it. I have a modest Vanguard ETF account $23,000 which has done very well( it's up $6000, I opened a few days before the Brexit, its 100 percent ETF Stocks.
The total stock market, emerging market ETF, dividend ETF, and foreign ETF

Thanks
Boulous
You already know that you can just draw it down. $2500 means 240 months or 20 years....low risk if you go with FDIC/NCUA savings, etc.
You could put the 600K in something safe like CDs and high yield savings and make a little more. Then no stocks are needed.
Maybe combine with a SPIA in your 80s...but know the advantages and disadvantages of a SPIA before buying.
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