After 20 years of accumulation, early retirement is becoming a very real option. Wife and I are both 47. Firecalc says we are in very good shape (100% chance of not running out of money).
My question is - how do I need to change my AA between now and retirement, and once retired, what AA do I want to have until we can start accessing IRA/401K monies?
I can provide specific details if necessary, but here's a snapshot of our current AA:
- 75% equites (44% US TM, 22% ITM, 8% REIT)
25% bonds (all of it intermediate term; FSITX and PTTRX)
50% in taxable, 50% in IRAs/401K
taxable account is 100% equities
So, let's say I retire in 3 years, at age 50. What would you recommend I do between now and then to prepare? It seems I need to increase my fixed income, but I'm not thrilled with the prospect of buying intermediate term bonds right now. What other options are there? Just shorter term bonds? CDs?
I like the idea of establishing a floor that I can depend on, especially between 50 and 60. Does that imply an SPIA? Other options?
Any comments/ideas welcome. Thanks!