Below are some very rough back of the envelope calculations, with a lot of assumptions built in.Hi,
I recently inherited 10k and I would like to invest/grow it for retirement. I am 58 and I basically live paycheck to paycheck right now and really have nothing to look forward to as far as retirement goes beyond SS. So that's bleak.
I currently have it in an account with UFB that is giving me 5.25% interest.
Should I be looking at a good Mutual Fund?
Any advice would be greatly appreciated.
Thank you
The good news is that SS is a progressive system, so if you can continue working until full retirement age, you and your spouse should get enough to cover most of your living expenses, assuming you have been contributing for most of your life. You may also qualify for federal and state subsidies and you will probably pay no income tax. The estimate of $25k in annual income for you and your spouse will be lower than the $40k you are currently earning, but lower taxes and expenses will help close that gap.
Now the bad news. Let's assume you can invest the $10k for the next 10 years until you start claiming social security. It might add around $100 per month to your retirement income. That might be significant for someone with a low income, but it won't be life changing.
Statistics: Posted by Harmanic — Fri Jul 19, 2024 7:21 am