Need to learn where to invest substantial proceeds after downsizing from a California house we bought new 21 years ago, to a smaller California house.
Should I stick with mutual funds for income and equity, and money markets or very short term bond funds for cash?
Should I pay off present 30-year-old house mortgage from said proceeds? (present house 80% financed at 4.25%) or refi to a lower rate and assume income investments will always cover monthly mortgage (sounds risky)? House is near Sacramento where values are increasing.
* Protect existing IRA investment and the downsize proceeds
* Beat inflation
* Increase investments
* Re-invest all dividends and interest and yields until I'm 70
* Be financially independent at 70
Have been using fixed percentage asset allocation model for IRA's over the last couple decades: Fixed % for equity growth, for income generation, and for cash.
Paid off mortgage of first house.
I'm 63, healthy, still enjoyably working full time. Planning to start social security at 70.
Spouse retired and in good health.