Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Help! 18 more years to go
Old 01-14-2020, 07:33 AM   #1
Confused about dryer sheets
 
Join Date: Jan 2020
Posts: 3
Help! 18 more years to go

Good Morning All,

I stumbled on this great site and now Iím looking for some much needed help.

Background: 18 years till retirement. Emergency fund is at Max. Wife and I bring home roughly $200k per year. She just started her career. 20 years left on 4% int. rate mortgage. (Owe $240k/worth $475). Both will have SS.

Current Assets:
$290k in a rolled over 401k to a IRA
$44k in Roth
$6k in a Union Annuity (13k per year added)

Non active assets:
$95k in a old company annuity that pays out over 10 years. 9 more years of payouts coming.

Future assets:
Defined Pension: for every year I work I get $245/month into a pension fund. Collectible at 20 years service or sooner at a deduction. Should get 18 years in.

I feel my asset classes are all over the place and possibly over lapping a lot.

IRA (Fidelity) = FBGRX 30%, FCNTX 30%, FOCPX 20% and FXAIX 20%.

Roth (Fidelity) = FBGRX 100%

Annuity (John Hancock) = VFIAX 50% and VIGAX 50%.

Itís very simple....I want to go all in and be 100% growth for now. What would you change if this was your portfolio and had 18 years left to get it right?

Thanks you!!
__________________

Helpmeretireearly is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

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!

Old 01-14-2020, 10:00 AM   #2
Dryer sheet wannabe
 
Join Date: Sep 2019
Location: Austin
Posts: 17
Are you actively contributing to your Roth or tIRA? I would consolidate all of your investments in tIRA to FXAIX to lower expenses. Target growth in your Roth and max that with contributions if not already doing so.
__________________

ATXFIRE2034 is offline   Reply With Quote
Old 01-14-2020, 12:16 PM   #3
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 5,576
Welcome, Helpme!

18 years is a long time in investment terms. I'll let folks familiar with Fido funds comment on your specifics, but personally even 18 years out I was 10-20% in fixed income. Since your wife just started her career, I assume you were living on one income, so the key is to keep doing that and invest all of her income, as much in tax-advantaged accounts as possible.

Keeping your spending in check with the higher income is tough for some people, but if you can do that you should be in great shape in 18 years.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 01-14-2020, 12:20 PM   #4
Recycles dryer sheets
 
Join Date: Jun 2017
Posts: 397
Careful about relying on pension. Thatís a large sum - ripe for cuts/bankruptcy.. also many people at my old company banked on their pension - few stay long enough to reach max benefits.
pj.mask is offline   Reply With Quote
Old 01-14-2020, 12:48 PM   #5
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 2,306
Quote:
Originally Posted by pj.mask View Post
Careful about relying on pension. Thatís a large sum - ripe for cuts/bankruptcy.. also many people at my old company banked on their pension - few stay long enough to reach max benefits.

+1

18 years before I was eligible for retirement I had a great pension. Ten years before my retirement eligibility Megacorp changed the rules and my projected pension was reduced by 1/3. I was one of the lucky ones as those under a certain age and years of service lost them completely. 2 years before I was eligible for retirement Megacorp froze the pension so no more growth. So consider modelling your retirement without the pension and plan accordingly.
__________________
FIREd date: June 26, 2018 - wwwwwwhat a rush!
jollystomper is offline   Reply With Quote
Old 01-14-2020, 01:38 PM   #6
Confused about dryer sheets
 
Join Date: Jan 2020
Posts: 3
Yes any pension is on risky ground that’s why I’m here asking how to accumulate as much net worth I can in the next 18 years. On another note it would take the NY state to file bankruptcy and re-write contracts for the pension I have to become solvent.

Anyways yes I still plan to find the Roth to the Max and also fund the IRA for $5200 per year.

I was looking for more detailed funds or classes that you guys feel I should be in. I have a meeting with a Fidelity advisor next week also but wanted some other non biased opinions.

Thanks!
Helpmeretireearly is offline   Reply With Quote
Old 01-14-2020, 02:34 PM   #7
Dryer sheet wannabe
 
Join Date: Sep 2019
Location: Austin
Posts: 17
FSPTX...I just put $105k in yesterday but I'm extremely bullish on the tech sector and similar to yourself I have time on my side so I can afford the risk.
ATXFIRE2034 is offline   Reply With Quote
Old 01-14-2020, 03:38 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,965
Quote:
Originally Posted by jollystomper View Post
+1

18 years before I was eligible for retirement I had a great pension. Ten years before my retirement eligibility Megacorp changed the rules and my projected pension was reduced by 1/3. I was one of the lucky ones as those under a certain age and years of service lost them completely. 2 years before I was eligible for retirement Megacorp froze the pension so no more growth. So consider modelling your retirement without the pension and plan accordingly.
Yup.
That is why hopefully I will take my small pension as a lump sum in 2025.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 01-14-2020, 04:18 PM   #9
Thinks s/he gets paid by the post
HNL Bill's Avatar
 
Join Date: Dec 2017
Posts: 1,723
Welcome! A whole lot can change in 18 years. Since different asset classes outperform each year, or at least each several years, being wholly in growth stocks may drag your returns down, especially from where we sit now.

Check out this thread for an idea of how often different asset classes outperform:
Callan Periodic Table 2019

Even if you neglect bonds (which I would with your retirement horizon), having some broad based international exposure might provide some better diversification . Since Large Cap funds / growth funds have had such a run-up recently, small, mid-cap, and value funds may eventually catch up. Or not. Just be ready to stomach a large downturn, for it will eventually occur. Don't panic and sell!

What's your savings rate?
What are your current ages?
Are you maxing out the 401(k), then the ROTH IRA?



Best wishes!
__________________
Balance in everything.
HNL Bill is offline   Reply With Quote
Old 01-14-2020, 06:55 PM   #10
Recycles dryer sheets
SnowballCamper's Avatar
 
Join Date: Aug 2019
Posts: 117
Quote:
Originally Posted by Helpmeretireearly View Post

Itís very simple....I want to go all in and be 100% growth for now. What would you change if this was your portfolio and had 18 years left to get it right?

Thanks you!!
I would do everything in VTI and VXUS (to go all in and be 100% for growth), a bit heavier in VTI. I'm sure fidelity has comparable funds, if you like them.
__________________
--At what age does spending less now in order to have more later stop making sense?
SnowballCamper is offline   Reply With Quote
Old 01-14-2020, 09:44 PM   #11
Confused about dryer sheets
 
Join Date: Jan 2020
Posts: 3
-Savings rate is kinda in limbo right now due to the union job that has a fully funded defined pension plan and an annuity.

-Iím currently funding 1 Roth IRA in full and plan to start the 2nd one next month.

- Age is 43, no 401k available.

- Been thru the dip of 2001 and 2008 and was fine.

Thanks for all the input so far!


Quote:
Originally Posted by HNL Bill View Post
Welcome! A whole lot can change in 18 years. Since different asset classes outperform each year, or at least each several years, being wholly in growth stocks may drag your returns down, especially from where we sit now.

Check out this thread for an idea of how often different asset classes outperform:
Callan Periodic Table 2019

Even if you neglect bonds (which I would with your retirement horizon), having some broad based international exposure might provide some better diversification . Since Large Cap funds / growth funds have had such a run-up recently, small, mid-cap, and value funds may eventually catch up. Or not. Just be ready to stomach a large downturn, for it will eventually occur. Don't panic and sell!

What's your savings rate?
What are your current ages?
Are you maxing out the 401(k), then the ROTH IRA?



Best wishes!
Helpmeretireearly is offline   Reply With Quote
Old 01-15-2020, 11:56 PM   #12
Full time employment: Posting here.
 
Join Date: Nov 2013
Posts: 566
Quote:
Originally Posted by Helpmeretireearly View Post
-Savings rate is kinda in limbo right now due to the union job that has a fully funded defined pension plan and an annuity.


It boils down to income vs expenses. If you have issues with savings now pulling in $200k, you will have to invest very wisely to come out ahead in the long run. If your wife just started her career, you should try to keep living on one salary while banking the second. That is how you truly get ahead. Might seem harsh, but there has to be some pain for some gain unless you are really lucky.
NgineER is offline   Reply With Quote
Old 01-16-2020, 12:48 AM   #13
Recycles dryer sheets
 
Join Date: Apr 2017
Location: SF East Bay
Posts: 69
60% in FSKAX - Total Stock Market Index Fund
15% in FTIHX - Fidelity Total International Stock Index
25% in FXNAX - Fidelity USBond Index Fund

Rebalance back to these ratios once a year. As you get older, consider increasing your bond allocation. Over 18 years, an index fund portfolio will exceed the performance of most actively managed portfolios. Reasons - fund expenses are much less with index funds and likelihood of any actively managed fund exceeding the index decreases the longer the fund is held. Including bonds helps reduce volatility and ensures you have funds to invest when you rebalance and stocks are on sale because prices have dropped.

You might want to look at Bogleheads.org, which has a lot more info on index investing.
__________________

GoBears is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll: 7 more years at high stress job, or 11 years lower stress? MoneyChic Young Dreamers 37 02-12-2019 07:01 AM
Help me get through a couple more years.. CorporateSoldier Young Dreamers 23 08-24-2013 08:02 AM
Income: More is less? Less is more? Sam FIRE and Money 9 08-19-2006 08:01 PM
Are hurricanes more damaging, or is there just more to damage? Nords Other topics 120 07-06-2006 08:47 AM
Help, help, help Lee FIRE and Money 10 02-20-2005 05:47 PM

» Quick Links

 
All times are GMT -6. The time now is 12:36 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×