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9/22/2017 12:11:25 AM
Posted: 8/9/2005 9:42:15 PM EDT
[Last Edit: 8/11/2005 1:25:04 PM EDT by occaar]
Link Posted: 8/10/2005 12:39:48 PM EDT
Without knowing your marital status, income requirements, whether or not those properties produce income or are for appreciation, job situation (employeee, or self employed?), family needs, e.g. college tuitions to pay for, and whether or not you're debt free at this point, I'd make the following general suggestions:

1. You are probably sitting on too much cash for your age. Nothing wrong with being conservative, but $600k is probably being overly-conservative at this point in your life. Statistically speaking, you could probably live another 25-30 years, in which case increasing your exposure to equities is probably a good idea. You don't say what type of mutual funds you're currently invested in, but I'd be comfortable saying that probably half of that $600k could be put to better use in some good balanced fund or equity income funds.

2. Again, not knowing your family situation here, but I'd certainly look at a good Long Term Care policy. Like all insurance, the younger you are at the time of purchase, the cheaper it is. Living to 75 or 80 can be a good thing, but not if the remaining 5-10 years are in a nursing home. They can be pretty expensive, and without proper planning, you could end up running through those assets all too quickly. A LTC policy can really help defray the costs, not only for you but also your family members.

3. I don't know your employment situation, but if all your Qualified Retirement Plans are maxed out, you may want to consider a variable annuity. You can get all the growth benefits of mutual funds, but in a tax-deferred investment that can guarantee an income years later down the road. Many now also offer some very innovative "death benefit" guarantee's that can help mitigate the risk in an equity oriented portfolio-something not available in a mutual fund.They're not appropriate for everyone, but the flexibility and tax advantages they offer can be substantial, when used correctly in a person's long term financial planning.

4. Buy a good gun safe if you don't already have one, and add a few new new quality firearms. Hey, this isn't "Kudlow & Kramer," and you'll never hear that tip at an investment seminar.

Just four thoughts off the top of my head, but it appears you've already done a pretty good job in preparing for retirement. Congrats!
Link Posted: 8/10/2005 4:50:13 PM EDT
Agree with everything said above. With all that cash you might consider equity indexed annuities, which offer market-linked returns with no risk of principal. Better yet, invest in a fee-only financial advisor who will give you custom advice and won't push you into investments that give them kickbacks.
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