I am 49, married, have 2 in-college sons and have no debts save for PLUS loans for my sons (24K). My current net worth is 1.3 M and I would like to retire in 5 years. I am the only employee of my S-Corp business. My wife is a public school employee. I have estimated our annual retirement costs of 40K.
I have laddered CDs of 280K for the first seven years of retirement. These are also used for our emergency fund.
We have 400K in IRAs (trad, Roth, and SIMPLE) that I plan to gradually convert to All-Roth and invest in Vanguard Target Retirement 2015.
We have another 100K in IRAs that I plan to gradually convert to All-Roths and invest in Vanguard Target Retirement 2025, with plans to invest at least 400K eventually here also.
Other funds will eventually be placed in a Target 2035 fund. Etc, etc.
I am keeping my income low so I can top off my tax bracket with annual traditional to Roth IRA conversions. This also helps us our sons receive college scholarship monies.
Our retirement income stream will also be supplemented (a little) by my wife's state retirement income, as well as her 3 tax-deferred annuities. Oh, yeah, and possibly SS payments.
Is this plan just way too simple?