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Old 04-11-2019, 08:24 AM   #1
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WWYD?

Single male. Sold my house, sold most equities.

$600k cash, most in short term CDs
$800k in govt TSP / Roth
expected: $60k/yr in pension/SS offset

2 years from retirement @56.
Hate winter. Hate humidity.

No close family ties.
What would be your plan from this point forward,
with long-awaited traveling forecast for the future?
I have one in mind, but I'm looking at other options.
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Old 04-11-2019, 08:48 AM   #2
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We don't know what your spending will be, so what does https://firecalc.com/ say?
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Old 04-11-2019, 08:53 AM   #3
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What are your spending goals? My DBI went to Europe for a summer with a backpack, 4 pairs of underwear, a couple of changes of cloths and had a ball! He went to Monte Carlo, took trains and hitchhiked all over Europe. Met lots of people. The world is your oyster. You're single.

Ha, my DH said if I died he'd get a trailer down by the river (taken from Saturday Night Live) and travel all over like a vagabond.
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Old 04-11-2019, 08:54 AM   #4
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Do you want a permanent home base, or are you planning to travel around for a while? If home base, then since you do not like humidity or winter, you are looking at the southwest to move and settle in. If traveling around, have you thought about full timing RV life? Follow your travel desires around the country. Don't know your expected budget, but having the $60K coming in without any savings withdrawal is a nice position to be in.



As for your money, if your conservative CD's and TSP/Roth can provide for your needs, then it might work. My concern would be for inflation protection, but with your pension there may not be any real requirement for inflation protection.
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Old 04-11-2019, 09:09 AM   #5
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Between your pension and your savings you will have the ability to spend at least $100K/yr. With that much money I would by a nice condo in Southern California. I say condo rather than house because it's easier to leave a condo unattended for extended travel times.
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Old 04-11-2019, 09:33 AM   #6
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Feel free to live out my fantasy; just remember to post a vlog

If I were in your situation, I'd downsize like crazy the next 2 years, hook up with a similarly solvent GF who wants to go halfsies in a live-aboard sailboat, and cruise up and down both coasts of the Americas.

Of course, I'm not remotely in your situation. I'm extremely Married With Dogs, slowly transitioning between two houses, I like winter, and I'm reluctant to travel too far since we're eagerly awaiting the birth of our first grandchild. So maybe I'm probably not the best person to offer advice.

Looking forward to your future posts,

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Old 04-11-2019, 09:55 AM   #7
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If I was in your position and was looking at extended travel, then I would pair down any physical belongings to a point that any remaining stuff could be taken with me, or stored at a reasonable cost. I wouldn't see the need to buy housing (condo or otherwise) and if my travel would be 6 months out or more...just rent an apartment. Less than that, it would be a hotel or a extended stay type situation. Then...I would hit the road. Where? Well, that is *very* dependent on what you want to see and do.
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Old 04-11-2019, 10:00 AM   #8
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YNAB. You need a budget.
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Old 04-11-2019, 10:45 AM   #9
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Why did you sell off all equities and get interest bearing things.
Is your TSP also all interest bearing ?

What is your hedge for the recession/depression or Apocalypse not happening ?

Skipping all that, I'd go visit some counties for a few years, see the world.
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Old 04-11-2019, 10:52 AM   #10
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Originally Posted by roadyrunner View Post
WWYD?
Well, the first thing I would do is to repent, and buy back the equities up to an AA of 60-80%.
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Old 04-11-2019, 11:11 AM   #11
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Originally Posted by roadyrunner View Post
Single male. Sold my house, sold most equities.

$600k cash, most in short term CDs
$800k in govt TSP / Roth
expected: $60k/yr in pension/SS offset

2 years from retirement @56.
Hate winter. Hate humidity.

No close family ties.
What would be your plan from this point forward,
with long-awaited traveling forecast for the future?
I have one in mind, but I'm looking at other options.
600k would should last you 10 years @60k COL. Withdraw from cash until you run out, then withdraw from Roth, File SS as late as possible if you are healthy.

Rent for a while in some warmer climate that has things you desire and access to airports your travel requires. Then, travel, VRBO, cruise, guided tours etc. If you find you miss where Home base is, then buy a house with some of your roth balance...
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FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 04-11-2019, 11:52 AM   #12
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I'm not sure what the question is here, but I'll bite.

First, invest - that's way too much cash on hand. Keep 2-3 year of expenses in CD's, but find a better home for the rest.

You're relatively young with no family, no spouse, no kids. For many, that would get lonely after a while so changing that would be part of a plan for me.

Besides traveling, what do you want to do?
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Old 04-11-2019, 11:55 AM   #13
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If you anticipate spending less than about $100k yearly in retirement, then you should be in pretty good shape. You don't say whether you enjoy frequent travel, or if you are looking for more of a stable home base? Your dislike of winter and humidity would probably point you toward the US Southwest, as others have said. I would suggest visiting a few places that seem to fit the bill for you, and then renting in your chosen spot for a while to make sure you like it (in all seasons), before you buy anything.
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Old 04-11-2019, 12:30 PM   #14
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Oh. yeah, you crazy having 42% cash/cd asset allocation. Take 32% of that and invest it in VTI. Keep 3months in MM 30k, and the rest in CDs, 110k if it helps you sleep. Build a 6month CD ladder so every 6months you have the option to buy more CDs or replenish your depleted cash. Buy low, sell high. Always beat inflation at 3%.
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AA (Stock/Bond/Cash ): 96.5/0/3.5% MIX (Small/Mid/Large): 25/25/50% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): ~50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 04-11-2019, 12:34 PM   #15
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Vegas baby!!!
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Old 04-11-2019, 12:58 PM   #16
Confused about dryer sheets
 
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Would have already pulled the trigger and retired. You can't get back that 2 years. I retired at 56 and have never looked back. Control your spending and you have the finances beat.
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Old 04-11-2019, 07:57 PM   #17
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Quote:
Originally Posted by roadyrunner View Post
Single male. Sold my house, sold most equities.

$600k cash, most in short term CDs
$800k in govt TSP / Roth
expected: $60k/yr in pension/SS offset

2 years from retirement @56.
Hate winter. Hate humidity.

No close family ties.
What would be your plan from this point forward,
with long-awaited traveling forecast for the future?
I have one in mind, but I'm looking at other options.
I'd buy an inexpensive condo (~$300K) in Hawaii after retirement. No winter in Hawaii, well we do call it winter, but it's still 75-80 degrees in the daytime, and humidity's generally low. Only problem is, it's expensive to go anywhere from here. Other idea is to buy an RV and travel the US and Canada. Not sure what kind of travel you want to do, or what's your budget. A little sparse on details.
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Old 04-12-2019, 06:02 AM   #18
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Originally Posted by roadyrunner View Post
Single male. Sold my house, sold most equities.

What would be your plan from this point forward,
Find a place to live?
That would be high on my list, but then I wouldn't enjoy being homeless.
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Old 04-12-2019, 06:05 AM   #19
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Well, the first thing I would do is to repent, and buy back the equities up to an AA of 60-80%.
+1.
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Old 04-12-2019, 06:21 AM   #20
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I have a friend who RVs full time. He and his DW spend summers in Oregon and winters in Arizona. They have talked about traveling more, but have not gone elsewhere. If you hate humidity, you need to live out West.

What you haven't said is what do you enjoy doing with your time. To me that is a bigger question if you are single. If you love to garden, then RVing doesn't work. If you like to travel, then become a true vagabond for awhile.

I'm also in the camp of wondering why you sold most of your equities. Our money hopefully will need to last us 30 years. That is equal to the time I have been an investor. If you are in cash only, then you will end up much worse off. Your $600K cash now will likely be worth $400K or less in 20 years, and $200K in 40 years.

If you take that same $600K and keep it in equities, with an average growth rate of 7% (over inflation), you will have $2.4 million.

Your biggest risk is inflation risk in your present situation. It feels good to have all that cash, but it will feel better to have access to more funds 20-30 years from now, rather than much less.
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