Most of the following information came from my previous thread. What I am trying to do is illustrate how I am planning to set up my portfolio for drawdown. I've added some notes as well as some options. I would be very interested to see what other people are living on (total $$) how their portfolios are structured, how long they have been retired (I'm working part time right now, but could pull the trigger at any time and want the portfolio ready to go), how old you were when you retired, and any other information that might be relevant such as changes in withdrawal amounts, kids, rent vs own, etc.
That being said, here's mine
I'm 41 years old
Still working part time and setting things up
Not married (tried it once, lol)
I've lived on this amount of $$ for 16 months and it was easy!
No kids
Assume a 750k portfolio and a 50 year payout
70/30 stock/bonds&cash mix
750 * 0.3 = 225k in cash/bonds
750k - 225k = 525k stock funds
475k in S&P 500/total stock market fund
50k in global/emerging markets high risk own picks etc. (appx 10%)
assume 30k/year for living expenses
(with changes could get as low as 20k living expenses pretty comfortably)
5 years living expenses in a ladder or decent interest bearing cash vehicle
5 * 30k = 150k for 5 years living expenses in some laddered investments or anything with decent interest rate
225k - 150k(from 5 yr ladder) = 75k to be put into bond fund
Other information:
Firecalc gives me 100% survival rating even when no SS is assumed and interest rate is at 4%
I have a paid off house that I rent out which nets me about $6000/yr, house value is about 130k.
This will eventually be sold and proceeds added to portfolio.
I own half of a 2 family which flows cash but all monies are currently reinvested to fix it up.
Current value of 2 family is about 160k. Balance of loan is 140k and loan matures in 25 yrs.
This would either be sold eventually and proceeds added to the portfolio, or once paid off use
the rents to lower withdrawals from portfolio
The house I live in I owe 130k on and is worth about 250-270k. I could sell this house
and buy a nice house for about 150-170k loan free with lower taxes.
I will likely do this if my work dries up.
In my current house, I would need to withdraw 26k annually, so I have 4k wiggle room
If I were to sell this house and buy the cheaper one, I would have to withdraw about 20k/annually so I would have
about 10k wiggle room
I plan on adding modestly to my portfolio while I contract part time, and not withdrawing anything from it unless work dries up.
Questions:
Is this a reasonable allocation for the cash portion given the real estate holdings?
Is this in general how some people are structuring their portfolios during deaccumulation phase?
Is the portfolio diversified enough or should I add more small cap/foreign exposure?
Where do I park the 150k living expenses where i get a decent interest rate? CDs are terrible now?
Any other comments?
That being said, here's mine
I'm 41 years old
Still working part time and setting things up
Not married (tried it once, lol)
I've lived on this amount of $$ for 16 months and it was easy!
No kids
Assume a 750k portfolio and a 50 year payout
70/30 stock/bonds&cash mix
750 * 0.3 = 225k in cash/bonds
750k - 225k = 525k stock funds
475k in S&P 500/total stock market fund
50k in global/emerging markets high risk own picks etc. (appx 10%)
assume 30k/year for living expenses
(with changes could get as low as 20k living expenses pretty comfortably)
5 years living expenses in a ladder or decent interest bearing cash vehicle
5 * 30k = 150k for 5 years living expenses in some laddered investments or anything with decent interest rate
225k - 150k(from 5 yr ladder) = 75k to be put into bond fund
Other information:
Firecalc gives me 100% survival rating even when no SS is assumed and interest rate is at 4%
I have a paid off house that I rent out which nets me about $6000/yr, house value is about 130k.
This will eventually be sold and proceeds added to portfolio.
I own half of a 2 family which flows cash but all monies are currently reinvested to fix it up.
Current value of 2 family is about 160k. Balance of loan is 140k and loan matures in 25 yrs.
This would either be sold eventually and proceeds added to the portfolio, or once paid off use
the rents to lower withdrawals from portfolio
The house I live in I owe 130k on and is worth about 250-270k. I could sell this house
and buy a nice house for about 150-170k loan free with lower taxes.
I will likely do this if my work dries up.
In my current house, I would need to withdraw 26k annually, so I have 4k wiggle room
If I were to sell this house and buy the cheaper one, I would have to withdraw about 20k/annually so I would have
about 10k wiggle room
I plan on adding modestly to my portfolio while I contract part time, and not withdrawing anything from it unless work dries up.
Questions:
Is this a reasonable allocation for the cash portion given the real estate holdings?
Is this in general how some people are structuring their portfolios during deaccumulation phase?
Is the portfolio diversified enough or should I add more small cap/foreign exposure?
Where do I park the 150k living expenses where i get a decent interest rate? CDs are terrible now?
Any other comments?