Hello all, I've been lurking here for a while now and have learned a great deal. Thanks you all very much for you knowledgeable posts.
First a little about me, then a question or two. Single, no dependents (unless 2 cats count) hit 59.5 last week and am still working full time but looking forward
to retirement in the near future. There's a rumor running around my company that an early retirement offer will be made soon. If that turns out to be true I could be gone in a few months. Otherwise I intend to milk a large amount of saved vacation hours and become semi-retired, working 25-30 hours a week for perhaps another year or so. I'd reach 25 years July 1 2005 and at that point will get a better break on health
insurance so it's tempting to hang around at least that long.
My nest egg is about $875k in savings, IRAs, company stock, 401k and retirement plan. Based on past early retirement offers I expect I'd clear somewhere around another $100K or if I work another 15 months would be able to save that amount. The house is paid off and after retirement I'll probably sell it (it's way bigger than I need) and get a less expensive home. This should get me into the $1.2-1.3 mil range. Everything I've been reading here says that should be plenty for my lifetime. I don't have an extravagant lifestyle - I could live comfortably on 3% and get by on 2% if I had to - so if I manage it right I should be fine. Right?
After paying off the house a few years ago I started accumulating a lot of cash so I think I need to do some rebalancing. The 401K is in an S&P500 index fund and so are the IRAs. Until I retire I can't do anything about the company retirement plan money but when the happy day comes I'll put it in the S&P500 too. That leaves mostly cash which is in savings accounts right now. I'd like to get most of that into bonds but know very little about how to judge that market. Normally I'd never try to time the stock market much less the bond market but with interests rates so low I wonder if
an investment at this time in say the Vanguard Total Bond Market Index Fund isn't asking for trouble once interest rates start to rise. My goal is to have about 75% in the S&P500, maybe 20% in a bond fund and 5% in cash. If any of you could help me understand the bond fund part I'd sure appreciate it.
Haven't seen this discussed but for those of you collecting or expecting to collect SS how do you manage it? I figure that it will about cover future taxes so I plan to set up a separate account for SS deposits and use that to pay Federal taxes and hopefully property tax and auto registration. (I Live in Nevada so no state income tax.)
Thanks for any ideas you have and hope I'll be able to contribute a thought now and then.
Peter
First a little about me, then a question or two. Single, no dependents (unless 2 cats count) hit 59.5 last week and am still working full time but looking forward
to retirement in the near future. There's a rumor running around my company that an early retirement offer will be made soon. If that turns out to be true I could be gone in a few months. Otherwise I intend to milk a large amount of saved vacation hours and become semi-retired, working 25-30 hours a week for perhaps another year or so. I'd reach 25 years July 1 2005 and at that point will get a better break on health
insurance so it's tempting to hang around at least that long.
My nest egg is about $875k in savings, IRAs, company stock, 401k and retirement plan. Based on past early retirement offers I expect I'd clear somewhere around another $100K or if I work another 15 months would be able to save that amount. The house is paid off and after retirement I'll probably sell it (it's way bigger than I need) and get a less expensive home. This should get me into the $1.2-1.3 mil range. Everything I've been reading here says that should be plenty for my lifetime. I don't have an extravagant lifestyle - I could live comfortably on 3% and get by on 2% if I had to - so if I manage it right I should be fine. Right?
After paying off the house a few years ago I started accumulating a lot of cash so I think I need to do some rebalancing. The 401K is in an S&P500 index fund and so are the IRAs. Until I retire I can't do anything about the company retirement plan money but when the happy day comes I'll put it in the S&P500 too. That leaves mostly cash which is in savings accounts right now. I'd like to get most of that into bonds but know very little about how to judge that market. Normally I'd never try to time the stock market much less the bond market but with interests rates so low I wonder if
an investment at this time in say the Vanguard Total Bond Market Index Fund isn't asking for trouble once interest rates start to rise. My goal is to have about 75% in the S&P500, maybe 20% in a bond fund and 5% in cash. If any of you could help me understand the bond fund part I'd sure appreciate it.
Haven't seen this discussed but for those of you collecting or expecting to collect SS how do you manage it? I figure that it will about cover future taxes so I plan to set up a separate account for SS deposits and use that to pay Federal taxes and hopefully property tax and auto registration. (I Live in Nevada so no state income tax.)
Thanks for any ideas you have and hope I'll be able to contribute a thought now and then.
Peter