Portfolio Review-Horse of a different color

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Portfolio Review-Horse of a different color

Postby backofbeyond » Sun Mar 24, 2013 4:43 pm

Greeting,

Appreciate any insights the gurus have for my current financial situation and as I snake my way towards retirement. Here are the particulars:

Age: 47
Spouse: 46
Occupation: Civil Servant, working overseas, low six figures. 23 year in, plan on working for another 20 years till age 67. Under FERS.
Wife: Part time retail. Less than $15K a year.

Widow Pension: $12K equivalent a year in British Pounds. Wife also will bring in another $20K a year at age 62 from United Kingdom pensions, again in British Pounds.

Debt: $41K
May as well get the dirty laundry out first. Owe $14K in credit card, 0% interest for next 14 months. TSP loan of $27K at 2.5%, payoff in 3 years. My excuse is that we moved overseas in the last year, so the outlays we incurred, included: buying two right hand drive vehicles, putting first and last month rent down, bring our dog over ($8K), and school uniform/mandatory computer for daughter’s school. We are paying these off as quickly as possible and then I’ll be building a 6 month cash reserve. That’s my story and I’m sticking to it.

I. Retirement Assets residing in TSP or IRAs: $658K Total

Stocks: $401K

International Cap Large (TSP I Fund) : 18%
International Cap Small (SCHC, DLS, PISRX): 4%
Emerging Market (EEM, EWW, FNMIX): 6%
Natural Resources (IGE, IYE, HAL) 6%
Large Cap Domestic (TSP C Fund): 9%
Med Cap Domestic: (TSP S): 9%
Small Cap Domestic (IJS, IWN, IWO, PZI, DISSX): 9%

Bonds: $257K

Bonds-Domestic (TSP F Fund): 30%
Bonds-International (PYEMX, PYEMX): 2%
G Fund: 8%

II. Other Investments $46K:

Partnership in S-Corp: $25K
I Bonds: $7K
Foreign Currency: $14K

III. Family Owned Business: ($1.5M-$3.6M)

My family owns a cattle ranch, free and clears with no mortgage. I own 85%, while my 3 other siblings own the remaining 15%. We actually lease the land to a rancher. The proceeds that we get from him are plugged back into the upkeep of the property and to pay the ever increasing property taxes, so we don’t draw an annual income from it. The lease is good for another 2 years. At the end of 2 years, I’m playing with the idea of beginning to subdividing the property and selling it. Market research has determined that while I could sell it all to one buyer, it could take years to locate someone with that kind of capital outlay. Also small land parcel are normally more lucrative. The idea is to sell 5% two years from now, another 3% in 5 years and then the remaining 92% in 9 years. Again, I realize it could take several years to sell all of it once I do put it on the block. The market value is hard to pinpoint due to the size, as there aren’t any local properties of this size that have been sold in the last 5 years, but my share lays somewhere between $1.5M - $3.6M. This selling schedule is based on needing funds for daughter’s college and simplifying life when I reach the Minimal Retirement Age of 56. While I don’t plan on retiring until 67 (enjoy my job too much), I do want to have the option to do so, plus I realize that good health is not necessarily a given.

As mentioned above, I currently live overseas and expect to live off & on overseas for the next 20 years of my career. Upon retiring at 67, I plan on living part time in the States and part time in Asia/Europe. That is why I’m keeping 50% of my stock allocation in International. I don’t plan on ever buying a house.

I realize I have a hodge podge of EFTs, and it goes against the boglehead ideal of keeping it simple.

Interested in any 3rd party insights on the above.

Many Thanks
The question isn't at what age I want to retire, it is at what income. - George Foreman
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Re: Portfolio Review-Horse of a different color

Postby retiredjg » Sun Mar 24, 2013 5:20 pm

I think you've got things well under control. While reading, I kept wondering why you would work until 67, but I see you really like it. Everyone should be so lucky. :happy
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Re: Portfolio Review-Horse of a different color

Postby retiredjg » Sun Mar 24, 2013 5:23 pm

I guess there's one thing - the cattle ranch. With the growing interest in grass fed meat, that land may have an increasing value as pasture/range. Not sure I'd be selling it in little chunks if you don't need the money now.
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Re: Portfolio Review-Horse of a different color

Postby backofbeyond » Sun Mar 24, 2013 6:08 pm

Thanks for the feedback.

Propety taxes have increased approx 15% a year. Last year was the first single digit increase in the last 18 years. If we didn't lease it, there is no way I could afford to pay property taxes out of hide.

Thanks again.
The question isn't at what age I want to retire, it is at what income. - George Foreman
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