Happiness worth more than salary

I have been in the business for 15 years, and my current job title is director of operations. I earn $50,000 a year with bonus potential of $10,000 a year. I love my job. I enjoy what I do and get along great with my boss. However, guys in my same job are earning between $10,000 and $20,000 more. Should I be content with what I have now, or should I leave and look for more money? One side of me tells me to be happy, but the other side tells me to start looking. – P.R., Reading, Pa.

Dear P.R.: If you’re happy and enjoy going to work every day, you are blessed. Relatively few of us can say we enjoy every aspect of our jobs.

What you need to ask yourself is whether an additional $150 to $200 a week, after taxes, makes that much of a difference in your life. I have always said that the guy who hates his job is underpaid and those who love their work are well rewarded beyond the money.

Retirement forecast: Sunny

Dear Bruce: I am 51, and my husband is 52. We have $500,000 in retirement accounts and $66,000 in 529 college funds, which should take care of our kids’ expenses. We have an additional $700,000 equity in rental properties. Our plan is to exchange these for one rental property upon retirement for income. I’m trying to make hay while the sun shines. What else can you suggest? – P.R., Lexington, Ky.

Dear P.R.: It seems to me that your sun is shining brightly.

You have half a million stashed away and another 15 years ahead for retirement. I would continue to do exactly as you are doing. Congratulations.

Shoot for reasonable asset growth

Dear Bruce: I am in the enviable position of being retired with an index pension that much more than covers my monthly expenses. I’m in my early 60s, in great health, have long-term-care insurance, own my home and have no debt. Whenever I talk to anyone about investments, they ask about my goals. I never know how to answer. I feel my savings will just transfer to my kids when I “move on.” My risk tolerance should be almost infinite, I guess. I have about $350,000 to invest. Suggestions? – D.A., Doylestown, Pa.

Dear D.A.: No question, your position is enviable. As to your goals, I think the answer is to have a reasonable amount of growth, with moderate but not substantial risk. The last thing I would be worrying about is where the money is going when you are gone. Why not use it to your advantage right now? For example, there may be some things you have never done but would like to do – that long cruise, motoring around America, etc. In short, your goals ought to be reasonable growth, with a moderate to small amount of risk. This is an obtainable goal. But by all means, get out and spend some of that loot. You’ve earned it.

Downsizing, entrepreneurship don’t mix

Dear Bruce: I am 63 and I just started my own business doing home inspections. My wife is 55 and works full-time, earning $30,000 a year. The Veterans Administration covers my medical (not optometry or dentistry), and my wife’s employer handles hers. We own our home valued at $420,000. I have $568,000 in individual retirement accounts, certificates of deposit, stocks, bonds and annuities. The bulk of these are in my name. I also receive Social Security payments of $1,451 a month. There is no other retirement income.

I have a $300,000 variable appreciable life-insurance policy with $56,000 in its fund, which I manage. We also have a daughter entering college this fall, so we still have her to support. This will amount to $10,000 per year. We would love to travel, and downsizing is in our plans. Granted, my wife will probably outlive me by 20 years. Also, she will not be able to retire (touch her IRAs) for another four years. Do I need the insurance? Around the time I really quit working, will we have enough money (it now amounts to a little more than $1,000) to make it through to the end? I have read you should only take out a maximum of 4 percent of your savings (investments) per year. Can you please give us some direction? – C.M. in Georgia

Dear C.M.: It seems to me you have done very well. I’m a little perplexed that you just started a business and that you want to downsize and travel. Starting a business is no way to downsize and, in an embryonic enterprise, it is difficult to take time off to travel.

That said, I don’t see where you have any problem in terms of your savings and retirement. I would not diminish my life-insurance estate, but I would not be tempted to add to it.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.