Retiring in early 2019.

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Streamer
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Retiring in early 2019.

Post by Streamer » Mon May 21, 2018 6:01 pm

Retiring 1Q2019. Right now I'm all in cash 1.2Mil with brokered CDs and various bank accounts. 200K in 401k Target fund. Needing around $3200/month in addition to SS age 61 (widow) and small pension. Suggestions on how to achieve what I need and not draw down and run out.
Thanks all. I enjoy this forum.
Last edited by Streamer on Mon May 21, 2018 7:08 pm, edited 1 time in total.

trueblueky
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Re: Retiring in early 2019.

Post by trueblueky » Mon May 21, 2018 7:08 pm

Streamer wrote:
Mon May 21, 2018 6:01 pm
Retiring 1Q2019. Right now I'm all in cash 1.2M with brokered CDs and various bank accounts. 200K in 401k Target fund. Needing around $3200/month in addition to SS age 61 (widow) and small pension. Suggestions on how to achieve what I need and not draw down and run out.
Thanks all. I enjoy this forum.
1.4M times 4% = $4667 per month
Alternatively, $3200/month = 2.75% of $1.4M

You're safe as far as not running out, barring hyperinflation, but you will need to draw down. Increasing the percent in stocks should increase your total return and make your portfolio even safer from running out.

You seem conservative. Maybe a 40/60 stock/bond ratio would be good. It's ok to have the "bond" portion in CDs.

delamer
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Re: Retiring in early 2019.

Post by delamer » Mon May 21, 2018 7:25 pm

A 4% withdrawal rate from your initial portfolio (adjusted for inflation each year) makes it highly unlikely that you will spend down your portfolio.

However, that requires a minimum 30% allocation to stocks which you currently do not have. Also, you need to take into account federal/state income taxes on any withdrawals/earnings so that you net what you want to spend. The taxes will vary depending on whether you have tax-advantaged or taxable accounts.

So the best recommendations are to 1) up your stock allocation and 2) estimate your taxes.

For stocks, you could make it really simple and use an S&P 500 ETF. If you want to add smaller caps and/or international stocks, check out the “lazy portfolio” section in the Boglehead wiki for recommendations.

Streamer
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Re: Retiring in early 2019.

Post by Streamer » Mon May 21, 2018 7:38 pm

Thanks trueblueky.
Yes conservative. I dont have years on my side to recover stock market losses at this point in my life. I was planning on doubling my stock market exposure from 200k to 400k when I transfer my 401k to Fidelity.
The part about CDs vs Bonds I was questioning myself on. When interest rates eventually decline would I shift over to real bonds? Or something else. I plan on self managing my investments as long as I am able.

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amp
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Re: Retiring in early 2019.

Post by amp » Mon May 21, 2018 10:43 pm

Streamer wrote:
Mon May 21, 2018 7:38 pm
Thanks trueblueky.
Yes conservative. I dont have years on my side to recover stock market losses at this point in my life.
Are you sure about that? You may have a 30-40 year retirement ahead of you.
I was planning on doubling my stock market exposure from 200k to 400k when I transfer my 401k to Fidelity.
From what you stated, that's not quite right. You said that the 200K is currently invested in a target fund. You don't mention which fund it is, but the Fidelity Freedom Index 2020 fund is only about 57% equity. So if you have a total of 400K invested in this fund, you will only have 228K invested in stocks. That's a total stock market exposure of just 16% of the 1.4 million. Too me, that's just too low. I understand the fear of stock market losses when withdrawing from your portfolio, but relying on fixed income can be an even greater risk.

Have you read the Early Retirement Now Guide to Safe Withdrawal Rates? There's an incredible amount of information there for someone who's planning a greater than 30 year retirement.

A table from that blog is reproduced below. It shows how having a too small allocation to stocks can wipe out a portfolio during a long retirement. The percentages in the chart show the success rates of the various scenarios.
Image

However, if you truly can't stomach the volatility of the stock market, you could consider annuitizing part of your portfolio. That would provide much of the income you need and reduce any need for stock market exposure.
Last edited by amp on Tue May 22, 2018 7:38 am, edited 1 time in total.

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amp
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Re: Retiring in early 2019.

Post by amp » Mon May 21, 2018 11:04 pm

double post
Last edited by amp on Tue May 22, 2018 7:39 am, edited 1 time in total.

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amp
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Re: Retiring in early 2019.

Post by amp » Mon May 21, 2018 11:04 pm

triple post
Last edited by amp on Tue May 22, 2018 7:39 am, edited 1 time in total.

Streamer
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Re: Retiring in early 2019.

Post by Streamer » Tue May 22, 2018 3:35 am

Thanks for the feedback amp.

"I was planning on doubling my stock market exposure from 200k to 400k when I transfer my 401k to Fidelity. "

I am closing the 401K 2020 fund . I plan to buy an S&P 500 ETF and move to a 30/70 split using CDs as the bonds. I assume the S&P 500 fund is all equities. Suggestions....

carolinaman
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Re: Retiring in early 2019.

Post by carolinaman » Tue May 22, 2018 6:40 am

delamer wrote:
Mon May 21, 2018 7:25 pm
A 4% withdrawal rate from your initial portfolio (adjusted for inflation each year) makes it highly unlikely that you will spend down your portfolio.

However, that requires a minimum 30% allocation to stocks which you currently do not have. Also, you need to take into account federal/state income taxes on any withdrawals/earnings so that you net what you want to spend. The taxes will vary depending on whether you have tax-advantaged or taxable accounts.

So the best recommendations are to 1) up your stock allocation and 2) estimate your taxes.

For stocks, you could make it really simple and use an S&P 500 ETF. If you want to add smaller caps and/or international stocks, check out the “lazy portfolio” section in the Boglehead wiki for recommendations.
I agree with this recommendation. Does the $3200 monthly expense include health care? If not, you need to determine what this will be now and also after you go on medicare. You also need to estimate your taxes so you know how much you gross income you will need.

You may have some real tax saving opportunities, but you will need to estimate your taxes in retirement and determine what tax strategies might enable you to reduce your taxes. For example, converting the 401k funds to a Roth might save taxes in the long run. You are in a good position at your age to execute tax saving strategies. Once you go on medicare, that opportunity becomes more difficult as medicare part B costs increase when your income crosses certain threshholds ($85,000).

gotester2000
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Re: Retiring in early 2019.

Post by gotester2000 » Tue May 22, 2018 7:49 am

Does SS + small pension covers expenses of 3200/month?

Additional 200k in stocks means 30/70 allocation - little conservative. You can look at laddering CDs. Bonds tend to go down as interest rates increases.

Streamer
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Re: Retiring in early 2019.

Post by Streamer » Tue May 22, 2018 8:12 am

carolinaman wrote:
Tue May 22, 2018 6:40 am
delamer wrote:
Mon May 21, 2018 7:25 pm
A 4% withdrawal rate from your initial portfolio (adjusted for inflation each year) makes it highly unlikely that you will spend down your portfolio.

However, that requires a minimum 30% allocation to stocks which you currently do not have. Also, you need to take into account federal/state income taxes on any withdrawals/earnings so that you net what you want to spend. The taxes will vary depending on whether you have tax-advantaged or taxable accounts.

So the best recommendations are to 1) up your stock allocation and 2) estimate your taxes.

For stocks, you could make it really simple and use an S&P 500 ETF. If you want to add smaller caps and/or international stocks, check out the “lazy portfolio” section in the Boglehead wiki for recommendations.
I agree with this recommendation. Does the $3200 monthly expense include health care? If not, you need to determine what this will be now and also after you go on medicare. You also need to estimate your taxes so you know how much you gross income you will need.

You may have some real tax saving opportunities, but you will need to estimate your taxes in retirement and determine what tax strategies might enable you to reduce your taxes. For example, converting the 401k funds to a Roth might save taxes in the long run. You are in a good position at your age to execute tax saving strategies. Once you go on medicare, that opportunity becomes more difficult as medicare part B costs increase when your income crosses certain threshholds ($85,000).
Carolnaman thanks for input.

Healthcare is covered in retirement by employer funds.
$3200 is additional needed over and above SS and small pension annuity.
Based on input I am moving toward 30% equities /70% CD ladders as long as interest are up to support the plan.

protagonist
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Re: Retiring in early 2019.

Post by protagonist » Tue May 22, 2018 8:33 am

I look at it a little differently than some other folks. You say you need $32K/yr beyond social security.

1,200,000/32000= 37.5. So if you just kept up with inflation and if your assessment of your needs is realistic you would not run out of money until age 61+37.5= 98.5. That's pretty old, especially for a man, and you would still get SS. No matter what you do, if you don't do anything stupid, you will probably be OK. If you also own real estate, in the unlikely scenario that you were desperate, you could sell. In other words, if you have a half decent head on your shoulders you are fine. Don't worry. Be happy.

Consider the money you put in the stock market gambling money. The odds are in your favor, but you don't know what will happen to it. Don't listen to people who say it will definitely bounce back while you are alive or not fall more than it did in 1929- nobody knows the future. So keep enough invested very conservatively so that you can sleep at night. Not knowing your sleep habits, we cannot say what that number is. You might not get much richer doing what you are currently doing but you are also living with little risk. Where you draw that line is a personal decision based on what you know about yourself. You are rich enough to have the luxury of that decision. Just don't go crazy over trying to get too much richer...it will cause you agita you don't need.

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amp
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Re: Retiring in early 2019.

Post by amp » Tue May 22, 2018 8:45 am

Streamer wrote:
Tue May 22, 2018 8:12 am
Carolnaman thanks for input.

Healthcare is covered in retirement by employer funds.
$3200 is additional needed over and above SS and small pension annuity.
Based on input I am moving toward 30% equities /70% CD ladders as long as interest are up to support the plan.
One way to think of it is that you want to spend $38,400 per year. With your current $1.4 million portfolio it will take more than 38 years to deplete that portfolio. So as long as your portfolio at least keeps up with inflation than I think that you will be fine.
Edit: I see that protagonist said the same thing in the post above this one.

As I see it, you face two main risks:
  1. That you have underestimated the amount of money that you need to pull from your portfolio.
  2. That inflation wreaks havoc with the bond portion of your allocation.
The first risk is manageable as you are only planning on a 2.75% withdrawal rate from your portfolio. Even if you were to take 3% (42K/year) it would still take 33 years to deplete a portfolio that only matches inflation.

The second risk is more dangerous. Plenty of seniors ran into trouble in the 70s and 80s when their fixed income investments lagged inflation. One way to mitigate this without increasing your percentage of stocks would be a healthy dose of TIPS as a part of your bond allocation.

dandinsac
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Re: Retiring in early 2019.

Post by dandinsac » Tue May 22, 2018 9:25 am

I suggest you hire a CPA or another type of "per hour" financial advisor who has fiduciary responsibility to advise you relative to taxes. For your taxable funds, depending on your state, treasury bonds, i bonds, or a municipal bond fund may be a good approach as well.

Filing as a single taxpayer makes a big difference and you have a few years to withdraw from your 401K/IRA before you are required to take RMD distributions. The goal would be to withdraw from these funds now so that you minimize long-term taxes. As a point of reference, my mother-in-law has comparable balances as you do (~$1.2M). Her income streams (after tax withholding) are social security ($1700); pension ($1160); IRA ($1350) and taxable withdrawals ($1400). From a taxes standpoint, my MIL is stuck in the 22% bracket and has minimal opportunity to avoid them.

A second area to focus on would be your estate planning, disability insurance, trust, etc. in case something should happen to you.

trueblueky
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Re: Retiring in early 2019.

Post by trueblueky » Tue May 22, 2018 10:21 am

Streamer wrote:
Mon May 21, 2018 7:38 pm
Thanks trueblueky.
Yes conservative. I dont have years on my side to recover stock market losses at this point in my life. I was planning on doubling my stock market exposure from 200k to 400k when I transfer my 401k to Fidelity.
The part about CDs vs Bonds I was questioning myself on. When interest rates eventually decline would I shift over to real bonds? Or something else. I plan on self managing my investments as long as I am able.
CDs vs bond fund:

CDs are safer because of FDIC.

With brokered CD, you face the risk of needing to sell one early. A ladder mitigates that, if it has enough rungs. There's a similar risk for a bond fund -- that you would need to sell when price is down.

CDs are often competitive with, and sometimes superior to, bond funds as far as rate. Each time you need to purchase, you can decide what is best at that time.

Bond funds are less work. If you have multiple CDs maturing each year, that's multiple times to research (admittedly not that hard through a brokerage website) and decide.

There are other threads on this. FWIW, I have both.

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Sandtrap
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Re: Retiring in early 2019.

Post by Sandtrap » Tue May 22, 2018 10:29 am

Streamer wrote:
Mon May 21, 2018 6:01 pm
Retiring 1Q2019. Right now I'm all in cash 1.2Mil with brokered CDs and various bank accounts. 200K in 401k Target fund. Needing around $3200/month in addition to SS age 61 (widow) and small pension. Suggestions on how to achieve what I need and not draw down and run out.
Thanks all. I enjoy this forum.
Run your numbers here:
ONLINE FINANCIAL TOOLS
PORFOLIO VISUALIZERS, PROJECTIONS, AND ANALYSIS
https://www.portfoliovisualizer.com
Firecalc. Retirement. How long will your money last?
https://www.firecalc.com
Morningstar Instant Xray
https://members.morningstar.com/Registe ... L100&vUrl=

The start here:
GETTING STARTED
https://www.bogleheads.org/wiki/Getting_started
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

aloha
j

Streamer
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Retiring in early 2019

Post by Streamer » Sat Jul 14, 2018 3:54 pm

[Thread merged into here, see below. --admin LadyGeek]

Need some advice.

I am retiring in early 2019.
Below is what I have and how it is invested, needed income at retirement and retirement income and projected expenses. Please bear in mind I am a conservative investor as you will notice. The conservative position is influenced heavily by the thought of having to go back to work if I lose this nest egg to the market via an overly aggressive approach while I am in retirement. I have a small sum in a Fidelity Go account though I am considering an adviser through Fidelity or Vanguard. Not sure if an annuity is right or not, though is still an option if I have to.

Single and have significant other who is retired now.

Healthcare is paid by employer throughout retirement with approximately $100,000 credited to me at retirement to pay for employer coverage or buy the Healthcare coverage elsewhere if I choose.

I have no debt. 100% equity in home. 50% share of equity = $200,000

Current income $93,000/yr

Cash $500,000 (CDs)
Cash Management Acct. $187,000 (Brokered CDs)
401K through employer $202,000 in a 2020 Mutual Fund
IRA $487,000 (Brokered CDs)
Roth $110,000 (Brokered CDs)
Fidelity Go $11,000 +6.0% past 12 months (Moderate w/ Income 30/66 This is a test to see if I like the Go Account)

Need $5,000/month for living expenses (discretionary and non discretionary)
Early Social Security (Widower) $1,380/Month
Employer annuity of $350/Month or $66,000 lump sum. (No survivor benefit.)

I will need to produce approximately $3300/month to make up the difference.

I have read most of the Boglehead WIKI advice but am wondering if I need more granular advice. Comments welcome. Thanks

OnTrack2020
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Re: Retiring in early 2019

Post by OnTrack2020 » Sat Jul 14, 2018 4:13 pm

How much interest are the CD's generating currently per year?

How old are you?

That's a nice employer benefit for healthcare. Do you know how much the employer is paying on your behalf?

jebmke
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Re: Retiring in early 2019

Post by jebmke » Sat Jul 14, 2018 4:19 pm

OnTrack2020 wrote:
Sat Jul 14, 2018 4:13 pm
That's a nice employer benefit for healthcare. Do you know how much the employer is paying on your behalf?
Perhaps I misread it but it sounded like there is a 100K lump sum health care settlement. With that, OP is on his own. Certainly better than no HC assist but depending on the situation, that might only amount to, say, 4 years of premiums.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Sandtrap
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Re: Retiring in early 2019

Post by Sandtrap » Sat Jul 14, 2018 4:31 pm

Streamer wrote:
Sat Jul 14, 2018 3:54 pm
Need some advice.

I am retiring in early 2019.
Below is what I have and how it is invested, needed income at retirement and retirement income and projected expenses. Please bear in mind I am a conservative investor as you will notice. The conservative position is influenced heavily by the thought of having to go back to work if I lose this nest egg to the market via an overly aggressive approach while I am in retirement. I have a small sum in a Fidelity Go account though I am considering an adviser through Fidelity or Vanguard. Not sure if an annuity is right or not, though is still an option if I have to.

Single and have significant other who is retired now.

[u]Healthcare is paid by employer throughout retirement with approximately $100,000 credited to me at retirement to pay for employer coverage or buy the Healthcare coverage elsewhere if I choose.
[/u]
I have no debt. 100% equity in home. 50% share of equity = $200,000

Current income $93,000/yr

Cash $500,000 (CDs)
Cash Management Acct. $187,000 (Brokered CDs)
401K through employer $202,000 in a 2020 Mutual Fund
IRA $487,000 (Brokered CDs)
Roth $110,000 (Brokered CDs)
Fidelity Go $11,000 +6.0% past 12 months (Moderate w/ Income 30/66 This is a test to see if I like the Go Account)

Need $5,000/month for living expenses (discretionary and non discretionary)
Early Social Security (Widower) $1,380/Month
Employer annuity of $350/Month or $66,000 lump sum. (No survivor benefit.)

I will need to produce approximately $3300/month to make up the difference.

I have read most of the Boglehead WIKI advice but am wondering if I need more granular advice. Comments welcome. Thanks
Welcome.
What funds are available to you in the IRA and Roth?
What is the expense ratio of the 2020 Mutual Fund and what other funds are available to you there?
What does "50% share of equity" mean?
Can you clarify the terms of the $100k employee health care coverage?

Here are some tools to enter your assets and project what it might be able to provide for you going forward, and so forth.
ONLINE FINANCIAL TOOLS
PORFOLIO VISUALIZERS, PROJECTIONS, AND ANALYSIS
https://www.portfoliovisualizer.com
Firecalc. Retirement. How long will your money last?
https://www.firecalc.com
Morningstar Instant Xray
http://www.morningstar.com/portfolio.ht ... Entry.aspx
Optimal Retirement Planner (I-ORP)
https://www.i-orp.com/paper/index.html
http://www.calculator.net/investment-calculator.html

A "back of the envelope with a dull pencil" calc. would produce approx. $3300 x 12 = 39,600 annual expense and approx. $40k annual expense "X" 25 (25 times expenses) = 1 mil. at a withdrawal rate of 4%.
Would your CD's and conservative approach yield this?

That said, perhaps a "Bogle path/portfolio" may fit your needs. You can consider a partial or laddered SPIA with COLA but more on that later.
Start here for some reading:
Bogle Philosophy
https://www.bogleheads.org/wiki/Bogleh ... hilosophy
Here are links to the wiki's "Getting Started" and "Investing Startup Kit" pages:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Bogleh ... rt-up_kit
Define General Investment Goals and Objectives (what is your plan?)
https://www.bogleheads.org/wiki/Invest ... statement
Funding Priority (what do I do first?)
https://www.bogleheads.org/wiki/Priori ... vestments
Tax Efficient Fund Placement
https://www.bogleheads.org/wiki/Tax-ef ... _placement
Asset allocation in multiple accounts
https://www.bogleheads.org/wiki/Asset ... accounts
Risk Tolerance (what is your "sleep factor"?)
https://www.bogleheads.org/wiki/Risk_tolerance
Asset Allocation (what is right for you?)
https://www.bogleheads.org/wiki/Asset_allocation
Emergency Fund
https://www.bogleheads.org/wiki/Emergency_fund

And, read this.

Bogle 3 Fund Portfolio Basics and Beyond
https://www.bogleheads.org/wiki/Three- ... _portfolio

Suggested Reading List
https://www.bogleheads.org/RecommendedReading.php
Forum Library of Investing Advice with links
https://www.bogleheads.org/wiki/Main_Page

Outstanding write up on the 64/40 allocation by Bernstein.
http://web.archive.org/web/20061214061 ... in6040.pdf
R. Ferri on Bernstein's 60/40
http://www.etf.com/sections/index-inve ... nopaging=1

If you are going to pursue the conservative path after reading the above, then as one of many options, consider a partial or laddered SPIA (annuity). You can get quotes and projections here.
https://www.immediateannuities.com/a/in ... gIqFfD_BwE
You can do this while retaining a certain percentage of your assets in fixed (CD's, MM, Treasuries, etc) and also perhaps a comfortable percentage in indexed equities which would still be a very conservative and diversified approach.
aloha,
j :happy

Streamer
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Re: Retiring in early 2019

Post by Streamer » Sat Jul 14, 2018 5:06 pm

jebmke wrote:
Sat Jul 14, 2018 4:19 pm
OnTrack2020 wrote:
Sat Jul 14, 2018 4:13 pm
That's a nice employer benefit for healthcare. Do you know how much the employer is paying on your behalf?
Perhaps I misread it but it sounded like there is a 100K lump sum health care settlement. With that, OP is on his own. Certainly better than no HC assist but depending on the situation, that might only amount to, say, 4 years of premiums.
Age =61
Healthcare premium through employer plan is $950/month. I'll use approximately 50% of the 100K before Medicare eligibility. I would go Medicare route after 48 months. Then premium would likely go down at that point. I still get the remaining balance at that time when I go on Medicare.

Silk McCue
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Re: Retiring in early 2019

Post by Silk McCue » Sat Jul 14, 2018 5:13 pm

You already have an open thread with this very same title with additional information and feedback from others. Did you mean to start this new thread?

viewtopic.php?f=1&t=249988

Cheers

Streamer
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Re: Retiring in early 2019

Post by Streamer » Sat Jul 14, 2018 5:14 pm

OnTrack2020 wrote:
Sat Jul 14, 2018 4:13 pm
How much interest are the CD's generating currently per year? >>> About 1% or 15kyr now. Going up as interest rates increase.

How old are you?>>>> currently 60, 61 when I retire

That's a nice employer benefit for healthcare. Do you know how much the employer is paying on your behalf?>>>>>> My share at retirement is approximately $950 / month. Employer share unknown.

Streamer
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Re: Retiring in early 2019

Post by Streamer » Sat Jul 14, 2018 5:17 pm

Silk McCue wrote:
Sat Jul 14, 2018 5:13 pm
You already have an open thread with this very same title with additional information and feedback from others. Did you mean to start this new thread?

viewtopic.php?f=1&t=249988

Cheers
Yes I know. That was my first post here. I tried to include all details here on second post. Not sure how to remove first post.

delamer
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Re: Retiring in early 2019

Post by delamer » Sat Jul 14, 2018 5:30 pm

The rule-of-thumb, for your age, is that you can withdraw 4% (adjusted for inflation each year) of your initial portfolio value and have an extremely low probability of running out of money.

With assets of about $1.5 million, that means you could take $60,000.

HOWEVER, that withdrawal rate/survival probability is based on holding at least 30% of your assets in equities.

You could try entering your data into https://www.i-orp.com/GuarInc/index.html using different levels of equities and see if you could drop the equities percentage and still get the approximately $40,000 you need per year.

But with an all cash portfolio, which very likely won’t keep up with inflation, you can’t get what you need if you are long-lived.

if you aren’t comfortable at all with equities, than you should investigate single premium immediate annuities and see how much you’d have to spend to get $3,300/month.

megabad
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Re: Retiring in early 2019

Post by megabad » Sat Jul 14, 2018 6:29 pm

I assume the $5000 per month needed is after tax. Much of your savings are in tax deferred or taxable accounts so be aware that you will need enough to cover expenses + taxes.

I agree with prior posters that are you fairly light on equities. Even Vanguard Target Retirement Income fund (which I consider to be too conservative for most early retirees) sits at about 30% equities. You are at less than 10%. Unexpected inflation poses a great risk to your current portfolio. If you are averse to more equities, I would at least consider holding a higher TIPS fund allocation in your retirement accounts.

As it is, I could fairly easily envision a scenario where you draw down all of your assets prior to death at your current expense level. This may be ok with you and you are certainly in much better shape than most Americans, but I would be ready to cut back expenses later in life. Even a short stint in a nursing home can be very expensive.

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Sandtrap
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Re: Retiring in early 2019

Post by Sandtrap » Sat Jul 14, 2018 11:32 pm

Streamer wrote:
Sat Jul 14, 2018 5:17 pm
Silk McCue wrote:
Sat Jul 14, 2018 5:13 pm
You already have an open thread with this very same title with additional information and feedback from others. Did you mean to start this new thread?

viewtopic.php?f=1&t=249988

Cheers
Yes I know. That was my first post here. I tried to include all details here on second post. Not sure how to remove first post.
Ask the moderator to merge the 2 threads. It will make for less redundancy and less work from the reviewers.
Just PM the moderator. Easy.
j

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Re: Retiring in early 2019.

Post by LadyGeek » Sun Jul 15, 2018 9:15 am

I merged Streamer's thread into the first one.

Even easier, report the post using the "!" in the top-right corner of the post. One of the reasons is "Duplicate thread". (Thanks to the member who did just that.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

michaeljc70
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Re: Retiring in early 2019.

Post by michaeljc70 » Sun Jul 15, 2018 10:06 am

I agree that the amount in stocks should be increased. You don't have to go crazy and can do it over time. Maybe to 30% since you say you are conservative. You have inflation risk with what you have now. What does the CD pay? You are probably barely keeping up with inflation with that portion which is the bulk of the portfolio.

Streamer
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Joined: Sat Mar 24, 2018 2:59 pm

Re: Retiring in early 2019.

Post by Streamer » Sun Jul 15, 2018 12:55 pm

michaeljc70 wrote:
Sun Jul 15, 2018 10:06 am
I agree that the amount in stocks should be increased. You don't have to go crazy and can do it over time. Maybe to 30% since you say you are conservative. You have inflation risk with what you have now. What does the CD pay? You are probably barely keeping up with inflation with that portion which is the bulk of the portfolio.
I believe the 30% (More or Less) is a good number. I am going to work with the portfolio visualizer to model it later with different AA.
The CDs are all over the place rate wise and all short term. I am trying to get The CDs bunched up into ladders with larger principal amounts then go for the highest % yield.

Anymore thoughts?

Thank you all.

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Hawaiishrimp
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Re: Retiring in early 2019.

Post by Hawaiishrimp » Sun Jul 15, 2018 1:16 pm

Besides emergency fund,
1. 50% in VTSAX
2. 50% in VTBLX
3. Set SWR to 3.5%

Congrats and enjoy your retirement.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

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