Enjoyed reading this forum for a few years now. I'm 57 and DW is 56. I "stopped working" last summer and my wife just completed an early retirement deal from mega-corp. I say "stopped working" because it's been bothering me not working of late, but it bothers me more to work so something of a purgatory that hasn't played out yet. It bothers me to be idle and it bothers me to pull from savings to buy day to day stuff. Anyone have this problem? Maybe I'll do something very part time. Anyway, here's our numbers:
Total NW of $5.0MM as:
> $1.80MM Retirement accounts, mid to large cap Funds, stocks, ETF's.
> $2.30MM Investment accounts, ETF's, mid/large stocks, one mutual fund.
> $300k SFR, owned for 30 years, no mortgage.
> $600k Residence, no mortgage.
The investment accounts pay $70k dividends and net rent income after tax is $12k. I will be able to draw on the retirement accounts in two years but likely won't for awhile. We'll probably get $40k SS or less if taken early. Our biggest expense is my son's college, two more years at $25k/yr, then our medical subsidy ends, so we'll be paying out of pocket ~$15k/yr until medicare. We're likely to move to AZ in a couple years too.
I only invest in dividend paying mid and large caps that are growing earnings, growing the dividend and are highly unlikely to halt or even cut the dividend during times of crisis. This considered, I still think an overall reduction of dividends for my portfolio would be likely within my lifetime so we plan to be able to live on <2% WR, but plan on pulling 3% and maybe go to 4% once in awhile.
No LTC insurance, no bond allocation, no annuities, no pensions, no life insurance. My thinking is that if the SHTF to the point that the S&P tanks beyond recovery, then bonds, etc won't be far behind and our biggest problems will be elsewhere.
Btw, I'm an ex-CPA, preferring to manage companies operations. I spend ~1 hour a day on my investments with particular attention to diversification and minimizing taxes. Thanks for reading and commenting.
Total NW of $5.0MM as:
> $1.80MM Retirement accounts, mid to large cap Funds, stocks, ETF's.
> $2.30MM Investment accounts, ETF's, mid/large stocks, one mutual fund.
> $300k SFR, owned for 30 years, no mortgage.
> $600k Residence, no mortgage.
The investment accounts pay $70k dividends and net rent income after tax is $12k. I will be able to draw on the retirement accounts in two years but likely won't for awhile. We'll probably get $40k SS or less if taken early. Our biggest expense is my son's college, two more years at $25k/yr, then our medical subsidy ends, so we'll be paying out of pocket ~$15k/yr until medicare. We're likely to move to AZ in a couple years too.
I only invest in dividend paying mid and large caps that are growing earnings, growing the dividend and are highly unlikely to halt or even cut the dividend during times of crisis. This considered, I still think an overall reduction of dividends for my portfolio would be likely within my lifetime so we plan to be able to live on <2% WR, but plan on pulling 3% and maybe go to 4% once in awhile.
No LTC insurance, no bond allocation, no annuities, no pensions, no life insurance. My thinking is that if the SHTF to the point that the S&P tanks beyond recovery, then bonds, etc won't be far behind and our biggest problems will be elsewhere.
Btw, I'm an ex-CPA, preferring to manage companies operations. I spend ~1 hour a day on my investments with particular attention to diversification and minimizing taxes. Thanks for reading and commenting.