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Feeling stumped
Old 03-24-2011, 06:50 PM   #1
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Feeling stumped

I'm sure this has probably been discussed to death, but I'm having a difficult time even determining what terms to search on.

My problem: DW and I would like to retire in 10-12 years or so, when I'm about ~55 and she'll be ~53. I've run various calcs and it seems like we're on track, but I'm not sure how to set up accounts to cover us for the 8-10 years until we can begin drawing from our 401Ks and collect SS.

What types of investments are most common to cover this "bridge" gap? Could someone point me to some threads and/or books that provide strategies in this regard?

Thanks.
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Old 03-24-2011, 06:54 PM   #2
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Check out Fidelity's mutual fund called the income replacement fund(s).

They will work pretty well to bridge a 10 year or so gap to cover income that SS will cover.

Fidelity Investments

Also if you call just about any mutual fund company, or investment house they can help you set up a fund(s) to span those years before SS kicks in and also for after that.
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Old 03-24-2011, 07:11 PM   #3
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You might find this worth a read.

Amazon.com: The Bogleheads' Guide to Retirement Planning (9780470919019): Taylor Larimore, Mel Lindauer, Richard A. Ferri, Laura F. Dogu, John C. Bogle: Books

The short answer is that you don't need a special account or investment for that time period. You take out more yearly to cover your expenses until SS kicks in, but you maintain a constant asset allocation. You can withdraw from your 401(k) when you are 55 and retired or use a 72(t) to tap IRAs before you are 59 1/2 without penalty.
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Old 03-25-2011, 08:18 AM   #4
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Quote:
Originally Posted by travelover View Post
You might find this worth a read.

Amazon.com: The Bogleheads' Guide to Retirement Planning (9780470919019): Taylor Larimore, Mel Lindauer, Richard A. Ferri, Laura F. Dogu, John C. Bogle: Books

The short answer is that you don't need a special account or investment for that time period. You take out more yearly to cover your expenses until SS kicks in, but you maintain a constant asset allocation. You can withdraw from your 401(k) when you are 55 and retired or use a 72(t) to tap IRAs before you are 59 1/2 without penalty.
Thanks, I'll give the book a read.
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Old 03-25-2011, 10:54 AM   #5
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This is very useful information. Thank you all, I think everyone should take a look into this.
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