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====== Retirement Strategy for a 65-Year-Old with $200,000 in Cash ======

You are a 65-year-old retired individual in good health, receiving:
  * **$2,500/month in Social Security Income**
  * **Medicare A & B**
  * **Medicare Supplemental Insurance**
  * **Dental Insurance**

You also have **$200,000 in cash**. Here's how to manage it to support a comfortable and secure retirement.

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===== 1. Estimate Monthly Budget Needs =====

Assume total monthly expenses: **$3,200/month**

**Shortfall**: $3,200 - $2,500 (Social Security) = **$700/month** or **$8,400/year**

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===== 2. Set Financial Goals =====

Goals for the $200,000:
  * Cover the gap between Social Security and actual expenses
  * Pay for unexpected medical or emergency costs
  * Grow modestly to offset inflation

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===== 3. Safe Withdrawal Strategy =====

Use a **3%–4% annual withdrawal** strategy to stretch funds.

  * 3% of $200,000 = $6,000/year (~$500/month)
  * 4% of $200,000 = $8,000/year (~$667/month)

This **closes your budget gap** safely.

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===== 4. Divide Funds into Buckets =====

=== Bucket 1: Immediate Needs (0–2 Years) ===
  * **Amount**: $20,000–$30,000
  * **Where**: High-yield savings account or money market
  * **Purpose**: Monthly shortfall and emergency access

=== Bucket 2: Medium-Term (3–7 Years) ===
  * **Amount**: $70,000–$90,000
  * **Where**: Short-term bond funds, CDs, TIPS
  * **Purpose**: Stable income and inflation protection

=== Bucket 3: Long-Term Growth (8+ Years) ===
  * **Amount**: $80,000–$100,000
  * **Where**: Conservative investment portfolio:
    * 40–60% diversified stock index funds (e.g., S&P 500)
    * 40–60% bond funds or dividend-paying stocks
  * **Consider**: Using a robo-advisor for low-cost management

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===== 5. Additional Tips =====

=== Avoid ===
  * High-fee advisors (use fee-only fiduciaries)
  * Keeping all funds in cash (inflation risk)
  * High-risk or "too-good-to-be-true" investments

=== Consider ===
  * Automatic monthly transfers from investments
  * Creating a simple estate plan:
    * Will
    * Healthcare directive
    * Power of attorney
  * Long-term care planning

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===== 6. Summary Table =====

^ Purpose             ^ Amount       ^ Where to Keep It                          ^
| Immediate needs     | $25,000      | High-yield savings account                |
| Medium-term growth  | $75,000      | Bond funds, TIPS, CDs                     |
| Long-term growth    | $100,000     | Balanced stock/bond portfolio (40/60)     |

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Let me know if you'd like help with investment fund suggestions or a simple budget worksheet.