Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
47 and ER'd for 2 Yrs. Need to do AA and Inv Plan
Old 12-18-2010, 05:21 PM   #1
Confused about dryer sheets
 
Join Date: Dec 2010
Posts: 3
47 and ER'd for 2 Yrs. Need to do AA and Inv Plan

Hi to all. Been reading the forum for a few months, and have enjoyed the topics and posts.

As background, I ER'd in early 09, after 20+ years in consulting and various megacorp jobs. DW, also 47, "ER'd" as we had our first of 2 kids (now 16,14). Much of our investable assets were gained through company stock, via an IPO. Sold off large company stock position over last 15 months, and am sitting at almost 85% Cash, 15% Equity. Glad to be out of the large stock position in my former company, and purposely kept the rest in cash to minimize risks. Now feel like we can sleep well at night.

It's time to get serious about investing for the next stage. Have run FireCALC and other retirements models. Looks like we can live on about 2.5% SWR. Expenses are pretty well managed, with no debt.

I'm in the process of doing a Vanguard "free" financial plan with one of their CFPs. Their prelim results maps us into a 3 fund approach (Boglehead model?) with Total Stock Market, Total Int'l Market, and Total Bond Market. I like the simple, low-cost approach. Have been with VG for 20 years. They also target us at either 50/50 or 40/60 Stock/Bond allocation.

I don't know if I need this kind of risk in my portfolio, given that I only need 2.5% SWR. Looking at 45+ year time horizon. Have considered SPIA, but at our age and current interest rates, it probably makes sense to wait several years.

Any thoughts on AA balance? Are we nuts for going lower than 40/60 at our age? Am I missing anything in discussions with VG? Does this 3 fund approach seem to basic? Thanks and look forward to your posts.
__________________

__________________
tennistime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-18-2010, 06:33 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,160
Welcome and congrats!

50/50 or 40/60 seems like very low risk to me at your age. In my opinion, you probably have more risk that you'd have some major event where you might like or need more money (that having 40-50% equities gives you a better chance of accumlating) than there would be risk of running out of money due to a collapse of stock values.

Those 3 funds are very basic but those are fine as your core or even your only stock/bond holdings. I wouldn't argue if someone said you should further diversify with precious metals or real estate but I've done very little of that myself other than my house (had 2 for awhile, now 1) and a very small precious metals fund.
__________________
RunningBum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
New here, 47 with 8 yrs to go. (I hope) almost there Hi, I am... 23 07-08-2013 06:19 AM
35 year old looking to ER in 10 yrs gomo Hi, I am... 6 01-15-2010 02:10 PM
Girlfriend of 8 yrs wants to get married...and I don't thefed Other topics 167 06-17-2008 01:03 AM
Forever Stocks - or at least 20 yrs? unclemick Stock Picking and Market Strategy 32 11-07-2007 02:59 PM
My Retirement Situation (38 yrs old) Shabber FIRE and Money 23 09-03-2006 03:17 AM

 

 
All times are GMT -6. The time now is 07:37 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.