Our Net Worth September 1st...Post Retirement

We have gone from acquisition mode with money into spend-down mode since we are now officially retired here at Chez Sluggy.

We went into retirement on July 1st with a shade under 1,350,000.00 in liquid assets in place.
It's taken a couple of months for finances to shake out, as it where, but we are finally on smooth waters and able to see what is ahead.

So what have we been up to since then with our money?

First thing is we took one of Hubs' retirement accounts and bought an annuity.
That took $443K of our assets and gives us a moderately sized passive income stream for as long as we live.  Hubs works in the financial industry so he got a special rate which made this option for where to put some of our money very attractive.

Our Net Worth will no longer be growing(at least the spending now will outpace the growing)so I have to stay on top of what we have and where it sits.

Here is where out money is allocated right now.....

* 2 different Checking Accounts-These will take a hit this month to pay for more College Boy tuition(plus more tuition in Dec. for his last semester)as well as pay off the last of the road trip bills.   We also need to keep funds in here until the second home gets sold as there may be costs to pay until we close on that house. At the first of the year we will reassess where to move any excess funds out of there depending on what's up with the second home.

* 1 small Savings Account(at CU to keep the CU Checking Account free)-Need to keep this open and keep at least $5 in that to remain a Credit Union member.

* Online Interest Bearing Accounts-A large portion of our non-retirement funds are there earning a bit of interest.

*  Certificate of Deposit(maturing Feb 2019)-We moved 2/3 of our non-retirement online interest bearing account funds into that to get a better rate and since we don't need to access that money for the next 1.5 years it was a no brainer.

* Savings Bonds-These are US Bonds we have as part of a Bond Program at Hubs work from the 1980's into the 2000's.  As they fully mature we are cashing them out(why let a bond sit after it's matured as it earns you nothing!)  We still need to figure out where to put this cashed out monies long term.

* an amount of Cash on Hand-Our emergency money for well, emergencies when you need cash. lolz

* the 401K Account-This is our big pile of assets, the retirement funds.  In a way I am reticent to tap this even after we can in October since it will continue to earn decent interest.  If we can pay bills from other accounts it keeps the money that IS earning something, earning it.

* the HSA Account-This is pre-tax accumulated monies to pay for medical co-pays.  So far we are handling co-pays with regular income(annuity payment).

* the RMSA Account-This is the fund to pay for healthcare premiums until we get to Medicare age.  We pay OOP from regular savings for premiums and then get reimbursed.  Hubs finally got around to submitting the forms for the first three premiums we have paid(July/Aug/Sept).  They say it can take up to TWO MONTHS to get this money reimbursed and back into your account!  This is why I got on him about getting this process going as soon as we returned from our road trip.  Just shy of $5K in reimbursements is nothing to sneeze at(or delay!).

We also have these non-liquid assets.....
* Blue Chip Stocks-Not a lot of them but it's something.  We took the bulk of our money out of the stock market about 5 years back since we were within retirement range and needed to lower our exposure to risk.  The stocks can be liquidated quickly if those funds are needed but will stay put for now.

* a Second Home-We are in the process of selling this house.  It is taking forever to get it repaired thus we need to keep money in our checking account for expenses here(plus paying to keep the electric and water on).
Once the house sells we will decide where to put those profits.  As the house is owned outright, everything after fees/taxes/costs will be profit.

So even with liquidating our second retirement monies account(to buy the annuity)our net work is still over 1 million dollars.  I don't know how to figure in the annuity payment to our net worth really, but it basically, for now, is enough for us to live on month to month without tapping into the other accounts(except for the tuition and road trip bills I talked about).  Perhaps we will hold off tapping the 401K, at least until 2018.  It might be fun(?)to see how long we can go without draining our retirement funds.  Maybe "fun" isn't the right word......"interesting" or "challenging".

Once 2018 happens and if we continue living off just an annuity for the entire year things will be super tight.  We shall see what 2018 brings though.

I am by no means a financial expert but I'll readily share what worked for us on our financial journey if you have questions.

Did you increase your net worth last month?
Do you have a retirement plan in place?

Sluggy