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Old 05-12-2012, 11:08 AM   #21
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Oh, stuff it. This guy is on the wrong forum.
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Old 05-12-2012, 12:58 PM   #22
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Really great feedback. Thanks so much to all of you wise people. Very helpful.

I figure another year or two and I will be set

Thanks again for all your advice

Seattle
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Old 05-12-2012, 01:10 PM   #23
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But then 3% annual inflation would reduce the purchasing power of that $63K to under $30K by the time the annuitant was 87...

No thanks.
Umm, you forgot about the other few million that were NOT annuitized and grew larger in the interim due to the annuity cashflow paying most of the bills...
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Old 05-12-2012, 01:32 PM   #24
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Congrats Seattle. My two cents: see if you can live on $140,000 per year (4% of 3.5M).If you think you can do it, then go ahead. Agree with all of the previous posts about the difficulty of earning 5% in munis. My guess is you are going to wind up doing something that generates income after you leave this job. 48 is very young to sit back on the porch in your rocker.
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Old 05-12-2012, 01:35 PM   #25
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I was in a similar work stress situation with no where near your net worth or income and negotiated an exit. Heck, just planning to leave removed a boat load of stress. Just about the time I was getting bored I was recruited back into the workforce, subsequently I did consulting for several years.

Your current employer must treasure your skills, faced with the possibility of your quitting they may be willing to find another role for you. You may be a key executive and your departure newsworthy, they may choose a lower profile role for you to facilitate the transition. Alternately there are consulting and temp jobs you could take on just to keep yourself busy. I know a Starbucks executive who did the latter under similar circumstances.

When you are in your early 50s work is both an economic and a social activity. I don't recommend moving beyond your social circle or professional network. Don't sell your house unless you intend to move out of the area, you are at a good valuation point for Seattle metro professionals/executives and know your neighbors.

I lived on Bainbridge Island during the consulting phase of my life. If you are likely to travel by air regularly be mindful of access to SEA.
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Old 05-12-2012, 03:40 PM   #26
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Congrats Seattle. My two cents: see if you can live on $140,000 per year (4% of 3.5M).If you think you can do it, then go ahead. Agree with all of the previous posts about the difficulty of earning 5% in munis. My guess is you are going to wind up doing something that generates income after you leave this job. 48 is very young to sit back on the porch in your rocker.
If you can't live on $140,000 a year, send it to me and I'll give it a try.

And it's never to young to sit on your porch and watch the world go by. I'm on my way out right now. Even if you do wind up engaging in some income generating activity, it will be because you want to. Some people don't call that retirement, but it is FI and it's a nice problem to have.
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Old 05-12-2012, 10:15 PM   #27
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Oh, stuff it. This guy is on the wrong forum.
Rude.
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Old 05-13-2012, 02:44 AM   #28
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Welcome to the forum.
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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.
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Old 05-13-2012, 06:24 AM   #29
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Oh, stuff it. This guy is on the wrong forum.
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Rude.
The principles of FI and early retirement are pretty universal whether you retire with $450K or $4.5M and commensurate spending, so I couldn't figure out what "wrong forum" meant. I'm sure we have active members retired and not who fall above and below that range...
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Old 05-13-2012, 06:32 AM   #30
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The principles of FI and early retirement are pretty universal whether you retire with $450K or $4.5M and commensurate spending, so I couldn't figure out what "wrong forum" meant. I'm sure we have active members retired and not who fall above and below that range...
+1 There is no need to be jealous of others success. Let's be happy for them.
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Old 05-13-2012, 06:57 AM   #31
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I just wanted to write that it looks like Seattle's portfolio is not set up to be particular tax-efficient and they are paying much more in income taxes than they need to be. For example, the 401(k) could be all bonds and some of the bonds in taxable could be tax-efficient stock index funds.

If Seattle hasn't been over to the bogleheads site for advice, I would suggest they go over there for awhile and see if those folks can be helpful.
http://www.bogleheads.org/wiki/Getting_Started
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Old 05-13-2012, 10:34 AM   #32
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Blue sky's in Seattle, you must have been there Sept 3, 2003 after 2 PM.
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Old 05-13-2012, 09:32 PM   #33
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Blue sky's in Seattle, you must have been there Sept 3, 2003 after 2 PM.
Last year Summer fell on a weekend in Seattle and more people were able to enjoy the occasion.
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Old 05-13-2012, 09:41 PM   #34
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If we didn't have a moist maritime climate west of the Cascade Mountains both Oregon and Washington would be... overwhelmed.
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Old 05-14-2012, 04:15 AM   #35
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I just wanted to write that it looks like Seattle's portfolio is not set up to be particular tax-efficient and they are paying much more in income taxes than they need to be. For example, the 401(k) could be all bonds and some of the bonds in taxable could be tax-efficient stock index funds.

If Seattle hasn't been over to the bogleheads site for advice, I would suggest they go over there for awhile and see if those folks can be helpful.
Getting Started - Bogleheads

The reason my 401K is 100% in stocks is because of the long term aspect of the 401K. I wont be accessing it until I am at least 65 years old so I thought that stocks over the long term posed the best investment strategy for growth. Thats 17 years for me.

But, I will absolutely look at your recommendations to move my 401K to bonds and figure it out. I see the sense in it.

Just know that when I wrote my original post, my portfolio was not set up to retire in the next year or two. It was a longer term investment strategy. But I fully realize that I am going to have to make alot of changes to my entire investment strategy once I make the decision to hang it up.

Also, got a laugh out of alot of the responses about me "sitting in my rocking chair at 48"...Once I retire early, I will stay very active...I would actually look forward to doing alot of charity work as well as the possibility of teaching. Consulting is an option but that may require travel and once I hang it up, I honestly dont want to see an airport, or the inside of a hotel room again unless it is on Maui on vacation

Thanks again to all who have responded and helped. I greatly appreciate the help. I have worked my entire life to get to where I am at today and I have learned a very important lesson about getting what you ask for and there is absolutely a cost for added responsibility. I see alot of ambition in the younger people coming up in my industry and I try to help them see what it is really about. I love what I do, but unfortunately the cost to health, family and life is more then I personally want to take on...
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Old 05-14-2012, 06:34 AM   #36
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Group: Does this thread tell you-all something about Seattle?
What are you trying to say?
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Old 05-14-2012, 08:49 AM   #37
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You want to ER on only $6MM? You might want to wait until you've built your nest egg up to $10MM. That's pretty much considered the minimum around here.
Are you serious? I'm new here, so maybe this is just a joke. If a person has $6 million dollars, they can take 4% of that a year and have a salary of $240,000. If a person (even a couple) can't retire early on that, then they've got some splainin' to do. I always assume a person doesn't retire unless they are debt free including owning their home outright (if they want to sell a paid for house and put that money in a fund that will then handle rent until death, then ok).

If you're retiring REALLY early like before age 50, then taking just 2% of that for a while would give you $120,000 a year and allow your money to significantly grow still over time. Only but in the most expensive areas of the country would it it tough to live on $120,000 assuming you had a paid for home and no debt whatsoever.
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Old 05-14-2012, 09:18 AM   #38
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Leaving, I suspect that 2B was being snarky. Lots of that around here - you'll get used to it.
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Old 05-14-2012, 09:46 AM   #39
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Leaving, I suspect that 2B was being snarky. Lots of that around here - you'll get used to it.
I was definitely being snarky. I find it amazing someone making $500K is as clueless as portrayed in their post. This is also significantly outside our typical "Hi, I am..." type posts. My initial thought (and possibly Ed's) is that this guy is possibly trolling. However, I haven't seen any signs to indicate this so I am probably wrong on this point.

If a true post, the OP needs to get a solid handle on his lifestyle costs and learn about asset allocation. He may actually be one of the few people I would actually recommend that they should see a fee only financial adviser. Before he does this, he needs to read William Bernstein's The Investor's Manifesto and understand where his expenses are. If he truly can't see how he can get by on "only" $240K/yr, he definitely needs to work until he dies.
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Old 05-14-2012, 09:54 AM   #40
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Are you serious? I'm new here, so maybe this is just a joke. If a person has $6 million dollars, they can take 4% of that a year and have a salary of $240,000. If a person (even a couple) can't retire early on that, then they've got some splainin' to do. I always assume a person doesn't retire unless they are debt free including owning their home outright (if they want to sell a paid for house and put that money in a fund that will then handle rent until death, then ok).

If you're retiring REALLY early like before age 50, then taking just 2% of that for a while would give you $120,000 a year and allow your money to significantly grow still over time. Only but in the most expensive areas of the country would it it tough to live on $120,000 assuming you had a paid for home and no debt whatsoever.
Yes grasshopper, you get it. Even with your low number of posts, you qualify as a forum expert. Unfortunately, the moderators reguarly rain on my parade so I doubt my recommendation will speed your "promotion" up the forum heirarchy.

You will find those that disagree with the need to have a paid for house. I personally have a 3.875% 30 yr mortgage but I also have a small pension that will cover the payments until my death. Since both are non-COLA'd, I decided that was a better use of my limited non-tax deferred cash and it certainly isn't worth tapping my IRA earlier than planned.
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