Hi, I'm 48 years old wishing to retire but scared to. I am single, never married, and currently in a career that is very unfulfilling. I have the "golden handcuffs". Job pays 160K. Assets include a fully paid off home worth at least 500K. 401(k) contains 230K and rollover IRA another 130K. I have a muni-bond portfolio worth 265K wich generates a little over 1000/month of tax free income, a little over 200K in cash giving me CD rates of about 4%, and individual stocks worth around 250K. I am in the money with stock options for about 300K and sell 50-60K blocks every January. My 401k and IRA are split about 60% stock mutual fund and 40% cash and bond equivalents. The stock mutual funds are split among large cap, mid cap and small cap with a little company stock and a very small portion (<10%) assigned to aggressive growth. I contribute about 25K a year to the 401K split 55/45 in favor of stocks vs bonds/cash. I don't dabble in foreign investments. I am able to save nearly 60K a year in cash.
Sounds good but I was burned in 2000 and live on pins and needles hoping that I don't take a hit again. My recovery has been supurb. There is an early retirement option at 55 where I could get about 2000/month, but will remain constant after SS kicks in (company reduces amount allocated by SS). I really don't know if I can stay in my present job for 7 more years and feel as though life is passing me by. Family members have advised me not to quit (a layoff and severence would be another matter). Being single I would have too much free time on my hands and get bored is what I am told. I do have a hobby but too much of that with no people interaction is not a good thing.
If I was to put all assests into tax free munis (not including 401k and IRA) I could get 3000/month triple tax free. I guess I could live on that. But you have to think about medical insurance.
Problem is I do not have a plan so I keep trodding along. Regardless of assets you need a plan. I am afraid to take the plunge now.
Sounds good but I was burned in 2000 and live on pins and needles hoping that I don't take a hit again. My recovery has been supurb. There is an early retirement option at 55 where I could get about 2000/month, but will remain constant after SS kicks in (company reduces amount allocated by SS). I really don't know if I can stay in my present job for 7 more years and feel as though life is passing me by. Family members have advised me not to quit (a layoff and severence would be another matter). Being single I would have too much free time on my hands and get bored is what I am told. I do have a hobby but too much of that with no people interaction is not a good thing.
If I was to put all assests into tax free munis (not including 401k and IRA) I could get 3000/month triple tax free. I guess I could live on that. But you have to think about medical insurance.
Problem is I do not have a plan so I keep trodding along. Regardless of assets you need a plan. I am afraid to take the plunge now.