Jim and Eva Dion
Married for 42 years, the Dions live in a retirement community in Bluffton, S.C. Jim, 63, used to be a firefighter, and Eva, 61, a human-resources executive.
CURRENT SITUATION:
• Last year the Dions bought a new home with a 15-year mortgage. The value of their investment portfolio has dropped 14% so far this year, so they have postponed new-car purchases and have pared back vacation plans.
• In addition to two children and four grandchildren, the Dions have three aging parents, for whom they're considering home-care services. Eva's mother may soon need a hip replaced.
• The Dions have about 40% of their investments in bonds and CDs, 55% in stocks and 5% in commodities.
WHAT THEY SHOULD DO:
Chatzky suggests reversing the Dions' "aggressive" investment blend in
favor of a 40-to-60 stock-to-bond ratio. They should also adhere to
their carefully planned budget, withdrawing only 4% a year from
retirement accounts to make sure they don't outlive their savings.