Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 06-10-2016, 08:03 AM   #21
Recycles dryer sheets
BeachOrCity's Avatar
Join Date: Jun 2016
Posts: 115
Originally Posted by deskpilot View Post
Hi all,

My wife and I are 50.
Income: 280K - but our jobs will be off-shored within 1-5 years
Cash: $1M
401k: $1.7M
Pension: none
Retiree Medical: none
No Debt
House $400K, no mortgage
Spending range in retirement: $80K to $120K
Kids: 3 grown

If I am using the various retirement planners correctly, we need to earn 3-4% and we'll be ok if we stop work in the next few years.
Does that sound right?
I'm not looking to get super rich. I am looking for the absolutely safest way to get 3-4%

I'm terrified of putting a large chunk of my wealth into stocks.
I've tried some mutual funds and never did well.

Is there a very safe way to earn 3-4%?
Should I get an advisor?

I would suggest you sign up for mint and track all your existingg expenses over time. Then export the data to create a spreadsheet where you can adjust for items like taxes and healthcare that will change in retiremenet.
This will give you the data you need to be confident about spending.

On the safe returns subject. Bottom line is to be able to withdraw 3-4 percent and adjust for inflation you have to have some equity exposure and yes a bear market will scare you and at some pointwill happen. You could set aside a cash or money market reserve to mentally help you with this but it will be a small drag on returns but the peace of mind would be worth it.

BeachOrCity is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-10-2016, 01:16 PM   #22
Thinks s/he gets paid by the post
Sunset's Avatar
Join Date: Jul 2014
Location: Chicago
Posts: 4,753
Originally Posted by Walt34 View Post
Welcome to the forum!

There is no absolutely safe way to earn 3-4% (that anyone knows of). That said, you should be okay with a WD rate of 3 to 3.5%, that grosses you $94,500/year at 3.5%

That said, here are some questions you will want to have solid answers to: Some Important Questions to Answer Before Asking - Can I Retire?
It's true, nothing is safe.
  • Cash will be eaten up by inflation.
  • CD's, bonds, by a company are worthless if company goes bankrupt.
  • Bonds, CD's , bank accounts insured by FDIC are worthless if gov't collapses or changes the law.
  • Stocks are worthless if company goes bankrupt.
  • Gold and silver are worthless once someone figures out how to extract it from the ocean waters or people stop believing in it, and there is not enough of it to be useful for exchange anyway, which is why platinum is never talked about as a currency.
  • Land becomes worthless once a super dump is created/found next door, or neighborhood becomes a crime hotspot, or drilling for oil ruins the drinking water.
So you best bet is simply read a lot , and diversify so not all your eggs are in 1 basket.

Sunset is offline   Reply With Quote
Old 06-10-2016, 03:15 PM   #23
Recycles dryer sheets
OrcasIslandBound's Avatar
Join Date: Mar 2010
Location: Poway, CA
Posts: 441
Deskpilot hasn't been back to this thread for some time, so we appear to be just talking to ourselves.

Anyway, I suspect that the 3 - 4% withdrawal rate applies in a reasonable investment pool, not an all cash portfolio.

Sent from my iPhone using Early Retirement Forum
OrcasIslandBound is offline   Reply With Quote
Old 06-10-2016, 03:39 PM   #24
Recycles dryer sheets
Join Date: Apr 2016
Posts: 192
Most people on this board are opposed to using financial advisors, preferring to do it themselves. But, just so you do not think that is a universally held view, there are some of us (including me) who think a financial advisor can be worthwhile. Of course, you want to get a good and honest financial advisor. (Just as you want a good and honest doctor, plumber, electrician, auto mechanic, etc.). You could learn to do any of those things yourself, I suppose, or you can elect to hire someone who you trust. Your call. Really depends on whether you want to take the time to get educated about investments, and whether you trust yourself to do it well, or you would prefer to pay for expertise. By the way, if you do decide to hire an advisor, I don't think you need to pay one percent of AUM. There are several services now that do this for much less than that, or you could hire someone for an hourly rate or a flat fee to help you make a plan that you are comfortable with, and then you could implement it on your own.

I am not opposed to the idea of doing it yourself. That is a fine way to proceed, if you want to. But I just did not want you to think that everyone on this Board thinks using advisors is a bad idea.
medved is offline   Reply With Quote
Old 06-10-2016, 03:55 PM   #25
Dryer sheet wannabe
Join Date: Jun 2016
Posts: 10
Originally Posted by OrcasIslandBound View Post
Deskpilot hasn't been back to this thread for some time, so we appear to be just talking to ourselves.
I'm Here! I'm Here! Been perusing the other boards for a few days. Lots of good threads about folks getting decent returns over time if you can ignore the ups and downs.

Almost all of the advice in this thread points to educating myself so that I can manage my own investments. I'll take that to heart and stop being a procrastinator about learning this stuff.

The idea of keeping my taxable income very low and getting ACA subsidies was interesting. I guess that translates to being more aggressive with my deferred-tax investments and very conservative with my cash until I turn 65.

thanks for all the good advice.

deskpilot is offline   Reply With Quote
Old 06-10-2016, 05:22 PM   #26
MBAustin's Avatar
Join Date: Jul 2010
Posts: 4,166
Excellent, Mike! Check back in after you've done some reading and started putting together your plan. We won't charge 1% for our opinions!

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Adult Child is Hoarder in Parents' House LauAnn Other topics 31 11-24-2012 09:35 PM
How can I become an un-hoarder? GoodSense Other topics 88 01-04-2011 10:14 AM
Early retirement on the horizon ultimo Hi, I am... 9 11-21-2009 10:37 AM
Food: are you a hoarder/stocker-upper or a daily shopper? ladelfina Other topics 50 03-19-2008 08:26 AM
Forced very early retirement? Whakamole FIRE and Money 7 08-26-2003 09:11 AM


All times are GMT -6. The time now is 02:42 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.