Islandtraveler
Recycles dryer sheets
Hello all,
I have been a member for some time now, but have rarely posted. I am very appreciative of the wealth great information freely exchanged by like minded individuals. The information obtained on this site is far superior to that of most financial planners. I am getting my ducks in a row preparing for retirement in August of 2015 when my current business contract expires. I would leave tomorrow but I would be leaving too much on the table if I do. I recently transferred ½ of my equity portfolio, (approximately 1,250,000) into Vanguard with the intention of eventually transferring the balance before the big day. I plan to avail myself of Vanguards portfolio analysis and structure my long term positions accordingly. I will probably keep my FUNDX portfolio as I do believe in the value of the discipline and feel the long term returns may compliment the Vanguard approach.
Firecalc has confirmed a 100% success probability based on a 3% or $120,000 annual withdrawal rate. (Let’s hope it holds up) The thought is to buffer the withdrawal plan with 3 years of cash and cash equivalents (Short term bond funds) in order to smooth out the volatility of the equity market. All dividends and distributions will be deposited into my cash position to draw upon monthly. 2/3 of my bond positions are in a SEP which I will be putting off distributions on until required. The thought here is to draw down the equity position from 70% to 60% with a half point annual glide path shift toward bonds. Reducing the equity position may or may not reduce my tax rate. I suppose that is anyone’s guess. I haven’t factored in SS as I am sure it will be means tested by then. If not I would postpone filing and hope the good Lord allows me time to enjoy it. I think the plan is fairly comprehensive, but I would love to hear from anyone that may offer any additional insight. Thanks in advance for your thoughts. Additional information:
Age 55 DW 54 ER planned in 24 months
1 Son freshman in college (30 k per year)
60 k living expense although budgeting for 120k
Looking to pull the plug in Aug 2015
$2,500,000 stock funds
$1,157,000 bond funds
$160,000 cash
$150,000 business
$50,000 cash value life insurance
$27,000 LLP
Bonds in SEP
Equity Funds in Scottrade discount brokerage
No debt
Home worth about 650k paid. Upgraded to solar power essentially eliminating electric bill. Converted from oil to gas and replacing roof and septic system. (We plan on sticking around a while)
Investment strategy for equities is split between Vanguard indexing and FUNDX model portfolio. Bond strategy is FUNDX Flexible income model. 1/3 bond investment in individual Non-AMT Muni Bonds. (New York Taxes are killers) Current allocation: 66% equities 30% bonds 4% cash.
I have been a member for some time now, but have rarely posted. I am very appreciative of the wealth great information freely exchanged by like minded individuals. The information obtained on this site is far superior to that of most financial planners. I am getting my ducks in a row preparing for retirement in August of 2015 when my current business contract expires. I would leave tomorrow but I would be leaving too much on the table if I do. I recently transferred ½ of my equity portfolio, (approximately 1,250,000) into Vanguard with the intention of eventually transferring the balance before the big day. I plan to avail myself of Vanguards portfolio analysis and structure my long term positions accordingly. I will probably keep my FUNDX portfolio as I do believe in the value of the discipline and feel the long term returns may compliment the Vanguard approach.
Firecalc has confirmed a 100% success probability based on a 3% or $120,000 annual withdrawal rate. (Let’s hope it holds up) The thought is to buffer the withdrawal plan with 3 years of cash and cash equivalents (Short term bond funds) in order to smooth out the volatility of the equity market. All dividends and distributions will be deposited into my cash position to draw upon monthly. 2/3 of my bond positions are in a SEP which I will be putting off distributions on until required. The thought here is to draw down the equity position from 70% to 60% with a half point annual glide path shift toward bonds. Reducing the equity position may or may not reduce my tax rate. I suppose that is anyone’s guess. I haven’t factored in SS as I am sure it will be means tested by then. If not I would postpone filing and hope the good Lord allows me time to enjoy it. I think the plan is fairly comprehensive, but I would love to hear from anyone that may offer any additional insight. Thanks in advance for your thoughts. Additional information:
Age 55 DW 54 ER planned in 24 months
1 Son freshman in college (30 k per year)
60 k living expense although budgeting for 120k
Looking to pull the plug in Aug 2015
$2,500,000 stock funds
$1,157,000 bond funds
$160,000 cash
$150,000 business
$50,000 cash value life insurance
$27,000 LLP
Bonds in SEP
Equity Funds in Scottrade discount brokerage
No debt
Home worth about 650k paid. Upgraded to solar power essentially eliminating electric bill. Converted from oil to gas and replacing roof and septic system. (We plan on sticking around a while)
Investment strategy for equities is split between Vanguard indexing and FUNDX model portfolio. Bond strategy is FUNDX Flexible income model. 1/3 bond investment in individual Non-AMT Muni Bonds. (New York Taxes are killers) Current allocation: 66% equities 30% bonds 4% cash.