Magazine article Black Enterprise

Life after Retirement

Magazine article Black Enterprise

Life after Retirement

Article excerpt

Managing your personal finances during your golden years

When Yvonne Banks approached retirement three ears ago, she had no preconceived financial plan to facilitate a transition from her blue-collar job to a cushy retirement. The 54-year-old Baltimore resident, who spent 30 years at Bell Atlantic (now Verizon Communications, NYSE: VZ), had $5,611.92 worth of employee stock options. Faced with losing her $38,000-a-year salary, she needed a financial plan and estate plan to ensure a comfortable lifestyle after retirement.

Banks was eligible for a $263,000 lump sum from her pension, IRA, 401(k), and stock options, all of which she converted into a Rollover IRA. She invested the money in three mutual funds, valued at approximately $361,789 as of September 30, 2000. The monthly income check she receives from her investments, plus two part-time jobs, has allowed her to maintain a $31,000 annual salary in retirement. "I could have gotten a pension check for $1,200 a month, but I wanted to do better than that," Banks said. She wanted to earn at least $1,500 a month to cover household, personal, and miscellaneous expenses.

Banks sought the assistance of Charlene D. Monts, the assistant vice president and certified financial manager at Merrill Lynch's Private Client Group in Baltimore. Realizing that aggressive-growth funds would deliver the best growth during retirement, Monts recommended Banks invest in the AIM family of funds. She pinpointed the AIM Blue Chip Fund (ABCAX), AIM Balanced Fund (AMBLX), and the AIM Weingarten Fund (WEINX). …

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