Yesterday, thanks to the stock market rally, my NW reached the $2M mark. Normally, I only calculate my NW about every couple of months, but I knew I was close, so I totaled it this morning. I was just as excited as when I passed the $1M. Now, if the market does not give back the gains today.... We'll see.
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 Early-Retirement.org 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!
Yes I am. Sometimes I wonder why. In about 2 years, I will be eligible for health insurance if I can retire early. So the cost of health insurance is the main thing keeping me from FIRE-ing now. Longevity runs in my family - most of my ancestors lived to their late 80s to late 90s - so I may need the money to last a long time.
If you had 1.5 Million and free health insurance, would you retire now?
It's hard to say. At 4% withdrawal, that would allow me $60k to live off of. Might be do-able but I'd like to have a little more cushion. Plus, I want to be able to enjoy my life and travel more if I want to.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 9,537
Quote:
Originally Posted by David1961
It is just investments. I actually don't own a house. - looking back maybe that was a mistake, but my investments have been very good to me
I'm willing to guess you adopted the LBYM lifestyle??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
Yes I am. Sometimes I wonder why. In about 2 years, I will be eligible for health insurance if I can retire early. So the cost of health insurance is the main thing keeping me from FIRE-ing now. Longevity runs in my family - most of my ancestors lived to their late 80s to late 90s - so I may need the money to last a long time.
Well that's prudent. Health insurance is extremely valuable. 2 years is not so long.
If you don't mind me asking what is your asset allocation? I'm still struggling to get to the 1 mil mark. I think early 2008. I think it's taking me a while because
I'm around 35-40% equities. Health care is a concern.
If you don't mind me asking what is your asset allocation? I'm still struggling to get to the 1 mil mark. I think early 2008. I think it's taking me a while because
I'm around 35-40% equities. Health care is a concern.
Most of my equities are in large cap. I'm trying to gradually put more in small and mid-cap funds and stocks. I'm also not one to buy and sell stocks and/or funds often. And I do periodically put money into my investments. In some ways, being 45, I think I may have too much in equities, but equities have done so well in the past 20 years it's hard to take that money out and put into bonds.
I'm not sure of your age, but 35-40% in equities seems low. Maybe others can chime in with their thoughts.
75% equities is aggressive, but if you can tolerate the volatility, it's a good ratio for long term portfolio survivability. Especially since you are currently working. You can always drop the ratio a little once you retire and need to draw on your portfolio.
35-40% in equities is indeed way too long for someone in their 40s who might be retired for a looooong time. 50% is probably a minimum.
Most of my equities are in large cap. I'm trying to gradually put more in small and mid-cap funds and stocks. I'm also not one to buy and sell stocks and/or funds often. And I do periodically put money into my investments. In some ways, being 45, I think I may have too much in equities, but equities have done so well in the past 20 years it's hard to take that money out and put into bonds.
I'm not sure of your age, but 35-40% in equities seems low. Maybe others can chime in with their thoughts.
A good rule of thumb that I've heard of is to subtract the age of the person from 100.
Since Mountaintosea is 52 years old, 100 - 52 = 48%.
A good rule of thumb that I've heard of is to subtract the age of the person from 100.
Since Mountaintosea is 52 years old, 100 - 52 = 48%.
I don't know if I would call that a "good" rule of thumb. Some people subtract their age from 110 or 120 to get their bond allocation. The 100 rule is very conservative.
Quote:
Linear Mode
