Didn’t Last Long
JUST A HANDFUL of weeks ago, I posted about achieving a $1 million net worth. Now my status as a millionaire is already in jeopardy. While the value of some of my financial assets have held steady���and some have seen gains���the portion of my retirement account invested in the stock market has suffered significant losses.
My retirement account balance peaked on Jan. 4 at $478,000. Today, it hovers around $430,000. Since I retired in late May, I���m no longer adding money to the account. Without those regular contributions, I know it could take months���and perhaps years���for the balance to rebound.
Am I worried? Not yet.
For now, I feel financially secure. I pay off my credit card in full every month. I haven���t had to dip into my emergency savings. Between my husband���s retirement income and the money we made from the sale of our Portland home, we can easily cover all our bills.
My hope: It���ll be at least a decade before I need to begin taking withdrawals from my retirement accounts. In seven years, at age 62, I���ll likely start drawing Social Security. That income, combined with my husband���s, should provide us with enough money to cover all our expenses.
In the meantime, the portion of my retirement savings that���s invested in a guaranteed return fund will continue to grow. I���m earning close to 5% on that money. My state pension fund also continues to grow at a rate of 7.5% a year. I plan on leaving that money in place until I turn 72. At that point, I���ll be required to take withdrawals.
It feels good to know I have other options besides tapping my retirement accounts. I���m confident I could land a part-time job if the need arose. I���m also in the early stages of starting my own dog training business. I don���t know how successful the business will or won���t be. Since the overhead costs are low, the financial risk is minimal.
For now, my status as a millionaire depends on the whims of the stock market. But by having a substantial portion of my retirement portfolio invested in guaranteed return accounts, I know I can afford to ride out the current market volatility.
The post Didn’t Last Long appeared first on HumbleDollar.
