Hi,
I just started looking at FI and ER information a few weeks ago when I got fed up with worrying about the deteriorating situation at my job. I have been working in software for 25 years, at current position for 12. There are continual layoffs at my company, my product got canceled, and I no longer feel secure. At my age (49) and salary ($160k) I don't think I could easily find another position without a long search, relocation, or both. Relocation is not an appealing option since my house is paid for and my fiance is tied to his job in this area with a plan to work another 5-10 years.
Psychologically I'm just fed up with the stress and long hours, and the idea of retiring or semi-retiring and living frugally is so much more appealing than starting over in a new job. I wish I could retire now, but due to health insurance I probably have to wait until at least 2014 when the pre-existing condition discrimination is supposed to end (or until I get laid off, whichever comes first.)
I have a $660k nest egg and really need some help figuring out an investment strategy. I've been lazy about this and scared to invest, so have a lot of money that has been sitting un-invested since about 2001. I just started moving into Vanguard, so far with a mix of 50% total stock market index and 50% bonds, split between total bond market index and inflation-protected securities (I think it's a TIPS fund). I am already anxious about whether I should have moved lump sums like I did or done dollar cost averaging, whether I should use a different strategy, and whether to pick different allocations for the different pots of money (IRA, Roth, taxable). I'm pretty uninformed about investing except for having read a few articles about couch potato strategy and low cost index investing. This is what I have currently:
$96k employer 401k, S&P 500 index (limited options in this plan)
$58k Rollover IRA, 50 % Vanguard Total Stock Market Index, 50% Vanguard Total Bond Market Index
$17k Roth, also 50% Vanguard Total Stock Market, 50% Vanguard Total Bond Market
$80k taxable, 50% Vanguard Total Stock Market, 50% Vanguard Inflation Protected Securities
$162k old employer 401k, I plan to move this to Rollover IRA, it's now 67% bond fund, 31% tech stock fund
$67k old self-employed 401k, un-invested, I plan to move this to Rollover IRA
$184k taxable, un-invested.
How do I start learning about this stuff and gain some confidence? I was considering reading the Four Pillars of Investing, and All About Asset Allocation. I also have some old Motley Fool books that I bought and didn't read: the Motley Fool Investment Guide, The Million Dollar Portfolio. I'm also going through the FAQ's and old threads here. Somehow I was hoping to find a big sticky in the FIRE and Money section that would tell me exactly what to do, but I guess it's not that simple, huh?
Any pointers for general learning or my particular situation would be appreciated.
I just started looking at FI and ER information a few weeks ago when I got fed up with worrying about the deteriorating situation at my job. I have been working in software for 25 years, at current position for 12. There are continual layoffs at my company, my product got canceled, and I no longer feel secure. At my age (49) and salary ($160k) I don't think I could easily find another position without a long search, relocation, or both. Relocation is not an appealing option since my house is paid for and my fiance is tied to his job in this area with a plan to work another 5-10 years.
Psychologically I'm just fed up with the stress and long hours, and the idea of retiring or semi-retiring and living frugally is so much more appealing than starting over in a new job. I wish I could retire now, but due to health insurance I probably have to wait until at least 2014 when the pre-existing condition discrimination is supposed to end (or until I get laid off, whichever comes first.)
I have a $660k nest egg and really need some help figuring out an investment strategy. I've been lazy about this and scared to invest, so have a lot of money that has been sitting un-invested since about 2001. I just started moving into Vanguard, so far with a mix of 50% total stock market index and 50% bonds, split between total bond market index and inflation-protected securities (I think it's a TIPS fund). I am already anxious about whether I should have moved lump sums like I did or done dollar cost averaging, whether I should use a different strategy, and whether to pick different allocations for the different pots of money (IRA, Roth, taxable). I'm pretty uninformed about investing except for having read a few articles about couch potato strategy and low cost index investing. This is what I have currently:
$96k employer 401k, S&P 500 index (limited options in this plan)
$58k Rollover IRA, 50 % Vanguard Total Stock Market Index, 50% Vanguard Total Bond Market Index
$17k Roth, also 50% Vanguard Total Stock Market, 50% Vanguard Total Bond Market
$80k taxable, 50% Vanguard Total Stock Market, 50% Vanguard Inflation Protected Securities
$162k old employer 401k, I plan to move this to Rollover IRA, it's now 67% bond fund, 31% tech stock fund
$67k old self-employed 401k, un-invested, I plan to move this to Rollover IRA
$184k taxable, un-invested.
How do I start learning about this stuff and gain some confidence? I was considering reading the Four Pillars of Investing, and All About Asset Allocation. I also have some old Motley Fool books that I bought and didn't read: the Motley Fool Investment Guide, The Million Dollar Portfolio. I'm also going through the FAQ's and old threads here. Somehow I was hoping to find a big sticky in the FIRE and Money section that would tell me exactly what to do, but I guess it's not that simple, huh?
Any pointers for general learning or my particular situation would be appreciated.