Hello from NoVa - 20 years to go and counting

[DJRR]

Hello everyone.

I was mocked by the header that said I never posted and the bid pipeline at w*rk has dried up, so I have a lot of free time right now.

About Me:
42 years old (D) Married (J) two kids (RR) in No Va
Retirement Savings ~ $300k
Net Worth ~ $550k
Occupation - Financial type with MBA currently doing commercial bid work
Salary ~ low 6 figures + bonus, DW is home with the Kids and my MIL who stays with us 1/2 time
Currently Saving ~ 20% of salary
Investment allocation - 100% stocks

That's the basics. I currently use a mutual fund newsletter that is based on momentum that has earned me 24% compounded over the last 4 years helped by a timely 401k distribution (at the bottom) in 2003. Not to be mistaken for a genius, I lost quite a bit in 2000 - 2001 , but fortunately off a low base. Dollar cost averaging through that downturn in my 401k really made a big impact.

Original plan was to retire at 65 based on earning 8%/year with no further contributions, but as I have continued to contribute and earn more than 8% I have moved up 3 years so far. Hope to eventually cash out at 59 and maybe 55 if we work something out on healthcare.

Other interesting tidbits:
I am a Christian and have always given ~ 11% of my income to charities of my choice.
I love to travel and have been to ~ 17 countries. Did a lot of travel for my work (over 300k flight miles).
Pretty big Sci Fi and alternative history fan.
Went to the College of William & Mary and enjoy Williamsburg and things colonial.
Currently a big Disneyworld nut and go regularly with the family
Not too handy - DW keeps a redneck rolodex to keep the house maintained
Current PTA treasurer - I think I missed the meeting when I was elected.
Big Yankees fan and SU basketball - grew up in Syracuse, not much to do in the snow but watch SU basketball

I can add more if I think of it. Hope to be able to participate and add something to the discussion. Looking forward to talking with you going forward.

_________
David

[bssc]

Welcome to the Boards

It sounds like you are well on your way to retirement. I notice that there is a difference between your retirement savings and net worth. Is this from home equity? I ask that since there are lots of opinions on how home equity should be treated and if a mortgage should be paid off. Also, since you are in NoVa, I will suggest that you can start rooting for the Hoyas.

Welcome

[Donzo]

Welcome and it sounds like you have a good finacial start and a full life going!

Hopefully the market will be kind and you will get free sooner than you expect. The biggest step towards ER is a commitment and you got that!

[DJRR]

Originally Posted by bssc

Also, since you are in NoVa, I will suggest that you can start rooting for the Hoyas.

And I was hoping this was a friendly place I would rather cut off my right arm than root for the Hoyas

I made an exception for the Redskins, but some things just go against nature

On your other question, the rest of my networth is assorted vehicles, college savings, home equity, etc. but I usually do not count it in my retirement plans. More of a plan B if things don't work out.

[tightasadrum]

Originally Posted by DJRR

About Me:
42 years old (D) Married (J) two kids (RR) in No Va
Retirement Savings ~ $300k
Net Worth ~ $550k
Occupation - Financial type with MBA currently doing commercial bid work
Salary ~ low 6 figures + bonus, DW is home with the Kids and my MIL who stays with us 1/2 time
Currently Saving ~ 20% of salary
Investment allocation - 100% stocks

That's the basics. I currently use a mutual fund newsletter that is based on momentum that has earned me 24% compounded over the last 4 years helped by a timely 401k distribution (at the bottom) in 2003.

_________
David

Welcome David,

Not a bad start for 42. I've got a daughter that may also enter the financial field after college, assuming she can find a company that will hire a tall, blue-eyed, blond woman. What was your W&M degree? Have you jumped around companies much?

Also, when I see a 24% annual return in this rising market, I smell a high potential for free-fall when it turns. Roughly listed, what asset allocation are you trying to maintain?

[travelover]

Originally Posted by DJRR

........Not too handy - DW keeps a redneck rolodex to keep the house maintained ..........

That's funny!

[DJRR]

Originally Posted by tightasadrum

Welcome David,

Not a bad start for 42. I've got a daughter that may also enter the financial field after college, assuming she can find a company that will hire a tall, blue-eyed, blond woman. What was your W&M degree? Have you jumped around companies much?

Also, when I see a 24% annual return in this rising market, I smell a high potential for free-fall when it turns. Roughly listed, what asset allocation are you trying to maintain?

My experience is that tall, blue-eyed, blond women make more money in sales than finance but it is a good career if you like it.

W&M degree was in economics, I jumped around a lot before I got my MBA, but have only had two companies in the last 12 years.

My asset allocation is currently:

Large Cap Growth 22%
Large Cap Value 17%
Small Cap Growth 22%
Small Cap Value 17%
International 22%

I hold two of the best performing mutual funds in each category - so 10 funds total and replace them when they fall out of the top quartile for their category. It can be a little bumpy, but I don't worry about it too much. It has been very successful in the 6 years I have been doing it. For example I was up 12% in July then down $26k to about breakeven, but now back up another $29k ~ 15% for the year.