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Path for Semi-Retirement
Old 01-08-2005, 10:19 AM   #1
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Path for Semi-Retirement

Age 52, have 200k in fixed income investments @3.5-4%, want to cont working 10-15 hrs / week(for travel money and IRA) and withdraw from the fixed income acct $2,200/ month for living expenses for 8 years til age 60.
Have 500K in long-term IRA monies 1/2 Vanguard (stocks 75%/bonds 25%) and 1/2 in Annuity (stocks 80%/bonds 20%) that should grow nicely over 8-9 years to a little over a million and then begin to draw down starting at age 60 (full retirement) at 4K per month. I'm assuming a modest/conservative 6-7% after expense return on the long-term IRA monies.
Any ideas / opinions on the plan.
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Re: Path for Semi-Retirement
Old 01-08-2005, 11:32 AM   #2
 
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Re: Path for Semi-Retirement

Looks good to me.
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Re: Path for Semi-Retirement
Old 01-08-2005, 06:33 PM   #3
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Re: Path for Semi-Retirement

Have you tried FIREcalc? It might give a good idea whether you have enough. It seems that you have sufficient saving since you are only withdraw less than 4% out of your portfolio (2200/(200000+500000)). You may not even have to work part time. Good luck.

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Re: Path for Semi-Retirement
Old 01-08-2005, 07:21 PM   #4
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Re: Path for Semi-Retirement

Quote:
Have 500K in long-term IRA monies 1/2 Vanguard (stocks 75%/bonds 25%) and 1/2 in Annuity (stocks 80%/bonds 20%) that should grow nicely over 8-9 years to a little over a million
Ferco, one thing jumped out at me - that your $500,000 will double in 8-9 years. That would require a return of 8-9% (rule of 72). Maybe, but I wouldn't bank on it. If you're planning to pull $48,000/year out of that starting in 8 years, you may encounter problems if you're starting with $700K or $800K instead of a million. *Also, you didn't say whether you will need $48,000 in today's dollars in 8-9 years. If that's the case, I think you'll encounter difficulties.

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Age 52, have 200k in fixed income investments @3.5-4%.
You can get 5.25% on a five year CD at PenFed right now.
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