Decided to update this thread to let ya’ll know what’s happening. Hey, it only took me 6 months to act on this! Yeah, I wanted to do some research and think about my options.
I’m not going to get too detailed on my finances in public, and I absolutely emphasize that the decisions made apply to me and not anyone else in my position, or a different position.
I sort of opted for this, after doing some of my own research. I say “sort of” because it turns out the bank with my savings account offers a limited number of hours of investment and retirement planning at no charge to the customers. This was an opportunity for me to consult with a CFP about my individual situation. Turns out I only needed about 2 hours of his time as I walked in the door already somewhat educated and prepared.
He was pleasantly surprised that I had no debt and for the past year I’ve been transferring about $1,000 out of my checking into savings every 3-4 months for the past year because I’m that good at budgeting. He said, and I agree with him, that being debt free is an enormous advantage (there are a few things I’d go into debt for - practical education, a house, a new-to-me vehicle if I don’t have quite enough cash all at once, that sort of thing. They don’t come up often for me). We went over my current 401(k), pension, and SS. We also went over what I suppose you could call “goals and aspirations”. My big concern is being able to retire at my current level of lifestyle which is frugal but comfortable for me. Bigger would be better, of course, but I wanted a basic floor to see me through my expected lifetime (that’s into my mid-90’s). He also discussed my comfort level with risk vs. benefits.
The good news is that I am, in fact, on track for that. Not quite as solidly as I like, I mean, stuff can always happen, but barring unforeseen catastrophe I should be able to do this. Considering that ALL of my retirement and savings were completely wiped out in the Great Recession, as in, we were down to under $3,000 in total assets, and I had to rebuild all that starting after age 50 I think that’s a decent comeback.
I did not, in fact, opt for an IRA of any sort for the “extra” money but chose a fund that yes, has a small fee but on average provides returns comfortably in excess of that amount. As the guy said, if I had had 25k or more to play with my options would have been much greater but that’s not where I am right now. There isn’t anything that offers the level of returns I want without some sort of fee attached. I might be there in the future and if so he’d be happy to advise me further but I really felt I was getting attention focused on the circumstances I am currently in along with my goals and not some pre-made cookie cutter thing. This fund has no restrictions on withdrawals, so while I hope and intend to let the money grow for decades or two IF I feel a need I can use a portion of it for immediate needs (assuming my continuing emergency fund couldn’t cover it) or put some or all towards a down payment on a residence if I wish to opt for that or invest in another manner or whatever - I have a greater degree of control and more options. Yes, we went over the pros and cons of this vs. an IRA.
One of the great things about going to this guy was the retirement planning. He was able account for inflation and various other factors that I am, frankly, bewildered by. Well, sure, this is what he does for a living. Like doing estate planning and power of attorney with a lawyer, he thought of questions and factors that would not have occurred to me to consider.
So, in sum - I have my 6-8 months emergency fund, my 401(k), my pension, widow’s SS followed by my SS (which is three times what the widow’s benefit is in my particular case), AND a small investment fund now, and a game plan for going forward.
Still thinking of cashing in my E-trade account, but I don’t have to do that today. Will probably review everything a year from now. Not likely to make changes, but you never know, circumstances can change.