Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
After all these years, I'm OUT
Old 08-06-2013, 10:06 PM   #1
Confused about dryer sheets
 
Join Date: Aug 2013
Posts: 6
After all these years, I'm OUT

Greetings to all who read this forum almost daily, as I have for past several years, dreaming of the day when I could sleep in and do whatever I wanted to do each day. Finally posting today. I want your opinions. I think I'm a-ok, but want the wisdom of this forum, as I respect those who have followed a similar path regarding their personal finances, or who are following the path towards the goal of FI.

At age 54 I have accepted a downsizing offer from the company--its complicated, but lets just say, I'm gone, left with a big smile, as the corporate gig, with the flights & travel, the boring meetings, politics, BS, personnel issues, etc. got the best of me for the past 30+ years. I have been a high earner and top performer in my field, and lucky with some company stock options.

DW is a homemaker, 1 child in last yr of college, 1 in technical school. Live in Tennessee.

We have always lived frugally, way below our means, for many years, as our parents grew up in the depression, and we were raised in frugal homes, those habits stuck, even though I had gross earnings in the mid 6 digits for a several years. We do enjoy treating ourselves to 2-3 vacations per year costing maybe 10k total, we go out to eat x 2 per week,(inexpensively) we enjoy concerts and sporting events, etc. We can easily live on approximately 85k per year including a 10k allowance for healthcare. Mortgage payoff is in a separate account, not yet pulled the payoff trigger, but money is there, ready when I am, which should be soon, as we just downsized.

Investment portfolio is at $3.8M (does not include mortgage payoff account)with 90% in taxable. Majority of it at Vanguard, at approximately 43% stock, 57% in bonds, CD's, cash.
I get nervous when the market drops, but I'm learning to not look at portfolio when market drops...it helps me stay calm, as I worked my rear off my entire life, saved diligently and don't want to mess up at this point.

OK...questions....am I A-OK?
how do I not mess it up? ..just allocate it as I'm comfortable (at less than 50% equities as I feel I won the game and don't want to take any more equity risk than necessary) and not look at except to rebalance annually?

what kind of withdrawal methodology is suggested?

need suggestions re non stock component as I currently have a lot in cash, suggestions on bond allocation?

brand new to the retirement game, like it so far but its only been 2 months, ....any tips on how to have a successful transition?

Thanks to all

I value your thoughts and opinions, glad, no thrilled, to be in the class of 2013.

Time4brake
__________________

__________________
Time4brake 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 08-06-2013, 11:03 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,424
You're golden. 85/3800 = 2.2% WR. Congratulations!

Vanguard's CFP's will do a retirement plan for you for free and will make recommendations on how to invest your stash.

Bonds are a real tough area right now as many feel interest rates will rise in the near term and bonds will get hammered. In response, many of us are staying in shorter term maturities and hope to redeploy at higher rates later. If Mega had a 401k with a stable value fund that offers decent returns it would be good to stay there for now.

For cash, I like online savings accounts currently paying 0.8-1.0%.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 08-07-2013, 05:45 AM   #3
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 92
Time4brake, congratulations. You are more than set financially.
__________________
Unpaintedhuffhines is offline   Reply With Quote
Old 08-07-2013, 06:11 AM   #4
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Congratulations!
__________________
5971 is offline   Reply With Quote
Old 08-07-2013, 07:09 AM   #5
Full time employment: Posting here.
Badger's Avatar
 
Join Date: Nov 2008
Posts: 825
You made it with room to spare. Congratulations!
__________________
Badger is offline   Reply With Quote
Old 08-07-2013, 08:31 AM   #6
Recycles dryer sheets
 
Join Date: Jun 2002
Posts: 367
Ya you are all done, congrats! Your withdrawal rate is below what a sane AA will pay out. You could design a very simple and conservative portfolio that would kick off income without touching principal of about 2.5% which is about $10k more (before taxes) than the $85k you say you need. You have won the game!
__________________
When you walk in the shadow of insanity, the presence of another mind that thinks and acts as yours does is something close to a blessed event. -Robert Pirsig, Zen and the Art of Motorcycle Maintenance
panhead is offline   Reply With Quote
Old 08-07-2013, 09:23 AM   #7
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 1,823
Quote:
Originally Posted by Time4brake View Post
OK...questions....am I A-OK?
I'm guessing there are a lot of forum members reading this and asking themselves "if he has to ask, where does that leave me?"

So, to answer your question...um, yes! You are more than OK! Don't do one more day of work unless it's something you absolutely love to do! You've earned it.

Congratulations and welcome to the forum!
__________________
Ready is offline   Reply With Quote
Old 08-07-2013, 01:40 PM   #8
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 609
Now that you've made all that money, don't risk it. Go with Vanguard or Fidelity and don't let them move you in and out of any investment. Go index funds and just enjoy life. If you are new to investing, a good resource would be Lazy Portfolios - Bogleheads. Keep it simple. As previously stated, "you've won!"
__________________
NanoSour is offline   Reply With Quote
Old 08-07-2013, 02:26 PM   #9
Recycles dryer sheets
Lagniappe's Avatar
 
Join Date: Mar 2006
Posts: 207
Time4brake,


I have similar assets and spending. My allocation is closer to 60/40 vs your 47/53, but I think this is just a reflection of risk tolerance. After reading the recent thread about increasing equity allocations with age, I may go even higher on the equity over the next several years.

As far as withdrawal strategies, since my spending is fairly flexible, I chose to go with what I need that year vs percent of remaining portfolio, whichever is lower. Right now I am using 2.5%; in my mid 50's I will go to 3% or 3.5%. This year I am tracking at well under 2% spending, at see no need to spend any more than that.

I too am struggling with the fixed income allocation. I have way too much in cash, sitting and waiting for the correction. My old company just added a GIC to their 401k offerings so I may shift a bit in that direction.
__________________
Lagniappe is offline   Reply With Quote
Old 08-07-2013, 05:04 PM   #10
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,152
Congratulations!

If you have any stock options that you will be forced to exercise upon your departure, that's one way to set up a cash buffer for the first months (or years, depending on the amount) while you work out a withdrawal strategy. And in your taxable accounts, switch over to taking all dividends and cap gains in cash rather than reinvesting. That also reduces the need to rebalance.

Enjoy!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 08-07-2013, 05:15 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,597
Quote:
Originally Posted by Time4brake View Post
less than 50% equities as I feel I won the game and don't want to take any more equity risk than necessary
You're in great shape, but the quoted section set my spidey sense tingling.

As you do some more research and read about what is likely to work and what isn't, you will probably come to the conclusion that this conventional wisdom is not as wise as it once was.
__________________
braumeister is offline   Reply With Quote
Old 08-07-2013, 05:36 PM   #12
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 269
Wow. Impressive in both accumulation and lifestyle (keeping it modest). Enjoy it.
__________________
Sesq is offline   Reply With Quote
Old 08-07-2013, 06:46 PM   #13
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
I agree you are golden. Congratulations.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 08-07-2013, 06:58 PM   #14
Recycles dryer sheets
 
Join Date: May 2012
Posts: 355
Keep the wife happy, that's the only thing that could mess you up!
__________________
Throwdownmyaceinthehole is offline   Reply With Quote
Old 08-07-2013, 08:14 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,424
He'll be home full-time, that should keep her happy.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 08-09-2013, 06:15 AM   #16
Recycles dryer sheets
racy's Avatar
 
Join Date: May 2007
Posts: 481
Quote:
Originally Posted by pb4uski View Post
He'll be home full-time, that should keep her happy.
... or not!
__________________

__________________
The Big Lebowski: Are you employed, sir?
The Dude: Employed?
racy 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


 

 
All times are GMT -6. The time now is 04:23 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.