cfran
Dryer sheet aficionado
1st time poster here! Really enjoy this forum (been lurking for awhile now!) and wish to get some input on my personal financial situation.
I am 41 years old, happily married with two kids - 9 & 6. In an ideal world I would like the flexibility to achieve financial freedom by age 45, not sure if I would retire or just find another profession. Regardless, I’m fortunate enough to be in a great paying job now and probably wouldn’t be able to replicate my compensation immediately should I choose to shift gears. Basically I want to see if I can have the flexibility to retire in 3 full years, the end of 2012, here are my details . . .
$1.1m in brokerage account (50% equities / 40% bonds / 10% cash)
$265k in 401k – I add annually about $20k to this including match
$110k in college savings – VUL and 529’s
Due to our company sale I still have 2 installments of cash coming to me in the next 3 years, $330k each, of which I will invest about $500k. These dollars are a long term capital gains taxed, so I just pay 15% plus State taxes.
By my projections by age 45 I’ll have about $2m in the brokerage account, about $400k in my 401k and $160k saved for my children’s education. In an ideal world I’d like the brokerage account dollars to bridge the gap (retirement date to the date I can start collecting qualified dollars) until I can draw upon my 401k, SS, pension (about $1200/mo). For what it’s worth my annual comp. is about $350k of which I save about 20% on a gross basis.
My question is do you think $125k - $150k withdrawal is feasible during the 15 year period prior to age 60? But furthermore and probably more importantly, can I get this kind of withdrawl rate for the next 35 years. I probably didn't write things as accurately as I should have but clearly I don't want to chew up the entire brokerage account by age 60, it'll need in some way to supplement the retirement dollars (qualified money).
Also, any thoughts relative to converting my current 401k into a Roth early in 2010? I ask that question as I’d be converting it in a year which I’m taxed at a high bracket, I’m still not sure on this one . . .
Almost forgot, we live a pretty conservative lifestyle, home mortgage is about $1400/mo, will have it paid for in about 8 years and don’t have any other debt. Our annual expenses are likely about 75k – but college for our children is going to play a big role in our future considerations.
Any thoughts would be appreciated.
I am 41 years old, happily married with two kids - 9 & 6. In an ideal world I would like the flexibility to achieve financial freedom by age 45, not sure if I would retire or just find another profession. Regardless, I’m fortunate enough to be in a great paying job now and probably wouldn’t be able to replicate my compensation immediately should I choose to shift gears. Basically I want to see if I can have the flexibility to retire in 3 full years, the end of 2012, here are my details . . .
$1.1m in brokerage account (50% equities / 40% bonds / 10% cash)
$265k in 401k – I add annually about $20k to this including match
$110k in college savings – VUL and 529’s
Due to our company sale I still have 2 installments of cash coming to me in the next 3 years, $330k each, of which I will invest about $500k. These dollars are a long term capital gains taxed, so I just pay 15% plus State taxes.
By my projections by age 45 I’ll have about $2m in the brokerage account, about $400k in my 401k and $160k saved for my children’s education. In an ideal world I’d like the brokerage account dollars to bridge the gap (retirement date to the date I can start collecting qualified dollars) until I can draw upon my 401k, SS, pension (about $1200/mo). For what it’s worth my annual comp. is about $350k of which I save about 20% on a gross basis.
My question is do you think $125k - $150k withdrawal is feasible during the 15 year period prior to age 60? But furthermore and probably more importantly, can I get this kind of withdrawl rate for the next 35 years. I probably didn't write things as accurately as I should have but clearly I don't want to chew up the entire brokerage account by age 60, it'll need in some way to supplement the retirement dollars (qualified money).
Also, any thoughts relative to converting my current 401k into a Roth early in 2010? I ask that question as I’d be converting it in a year which I’m taxed at a high bracket, I’m still not sure on this one . . .
Almost forgot, we live a pretty conservative lifestyle, home mortgage is about $1400/mo, will have it paid for in about 8 years and don’t have any other debt. Our annual expenses are likely about 75k – but college for our children is going to play a big role in our future considerations.
Any thoughts would be appreciated.