Taxman59
Full time employment: Posting here.
- Joined
- Sep 15, 2014
- Messages
- 645
I am a CPA who has worked for a family office for 22 years. I have helped the owners plan their estates, plan for their retirement, get through divorce, buy property and financially educate their children (as one client put it "He will give you 'THE TALK' (not THAT talk!)"). I was pushed by a former boss to set up a plan to be able to retire at 55. At that point, I will choose my terms for leaving. That point came last summer when a variety of health and other issues came together to say enough is enough!
I have lived well below my means for many years, but that didn't mean we skimped on the vacations. Coworkers think I should have bought new cars or bigger homes, but we are happy with what we have. I am married (28 years and very happy with each other) three sons. One is on his own (and starting to think about his early retirement at 55-60!!), one will graduate this summer and the youngest is completing his first year of college (the rest of his college $ is set aside to cover 4 years).
For about 10 years, I maintained a spreadsheet focused on the potential earnings during retirement, and compared that to my then current salary. Then I switched to using the Fidelity RIP with detailed expense #s. When the RIP success was consistently successful, I tried the FIRECALC. I am at 100%.
Question for the Forum: I was asked what I have done to my portfolio to protect it now that I am able to retire. I replied that if I am retiring at 56, I "protect the nut", but I have to plan for the next 35-40 years. Growth and income are necessary (though I am a firm believer in total return). Was I wrong? Should I go conservative in my AA to protect what I have, or plan for long term growth over the next 35-40 years?
I currently have:
401K $770K (22% ROTH)
Roth IRA $70K
Annuity (7% annual guarantee growth) $260K
Def Comp Plan (lump sum) $100K
DW has:
After tax portfolio $340K
IRA $66K
Savings bonds $80K
Joint funds $60K
The annuity and SSI will provide 95% of the projected expenses starting at 70 so the remaining portfolio needs to get me from now to then (14 years).
There are three inheritances that will come in over time (somewhere between now and 10 years), two are guaranteed, and the third only if there is $ left over and SIL doesn't take (long story, not relevant here).
Overall asset allocation is 69% equity/ 25% Fixed income / 6% cash The deferred comp plan will pay out in after tax cash which I plan to use to increase our cash balance. Monthly expenses are $7K which is higher than I have been spending for the past year, so there is plenty of cushion to cut back if needed.
I have lived well below my means for many years, but that didn't mean we skimped on the vacations. Coworkers think I should have bought new cars or bigger homes, but we are happy with what we have. I am married (28 years and very happy with each other) three sons. One is on his own (and starting to think about his early retirement at 55-60!!), one will graduate this summer and the youngest is completing his first year of college (the rest of his college $ is set aside to cover 4 years).
For about 10 years, I maintained a spreadsheet focused on the potential earnings during retirement, and compared that to my then current salary. Then I switched to using the Fidelity RIP with detailed expense #s. When the RIP success was consistently successful, I tried the FIRECALC. I am at 100%.
Question for the Forum: I was asked what I have done to my portfolio to protect it now that I am able to retire. I replied that if I am retiring at 56, I "protect the nut", but I have to plan for the next 35-40 years. Growth and income are necessary (though I am a firm believer in total return). Was I wrong? Should I go conservative in my AA to protect what I have, or plan for long term growth over the next 35-40 years?
I currently have:
401K $770K (22% ROTH)
Roth IRA $70K
Annuity (7% annual guarantee growth) $260K
Def Comp Plan (lump sum) $100K
DW has:
After tax portfolio $340K
IRA $66K
Savings bonds $80K
Joint funds $60K
The annuity and SSI will provide 95% of the projected expenses starting at 70 so the remaining portfolio needs to get me from now to then (14 years).
There are three inheritances that will come in over time (somewhere between now and 10 years), two are guaranteed, and the third only if there is $ left over and SIL doesn't take (long story, not relevant here).
Overall asset allocation is 69% equity/ 25% Fixed income / 6% cash The deferred comp plan will pay out in after tax cash which I plan to use to increase our cash balance. Monthly expenses are $7K which is higher than I have been spending for the past year, so there is plenty of cushion to cut back if needed.