nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
I posted this over at Bogleheads, so I'm interested to see the ER.org resposes.
My question is pretty open ended. How to arrange $500k in tax deferred funds and $100k in taxable accounts so that I can ER.
I'm 50, my mortgage is paid off, I get $1200 a month from rent, I've done my budgeting, planned for healthcare, decide what I want to do after work and to make early retirement a reality all I need to do is generate $24k in the first year from my capital and then keep up with inflation.
I plan to account for the variation in return by using a cash/short bond
buffer that I will replenish from dividends and gains in the good years and draw down in the bad years to avoid selling at a loss or if income and dividends are off.
I will have to do a 72t to bridge the years between 50 and 59.5.
As things stand now I'll get a $5k/year COLA pension at 59, $15k/year US SS and $15k UK SS at 66, but I don't want to consume principal between 50 and 66 so the that's why I'd like to gear the portfolio to produce $24k the first year and increase it by 3% inflation annually. Here's my portfolio plan.
Taxable
$25k cash
$75k International Admiral
Tax Deferred
$200k Total Stock Market Admiral
$75k Wellesley Admiral
$75k Short Term Bond Admiral
$75k Total Bond Market Admiral
$75k Inflation Protected Securities Admiral.
My question is pretty open ended. How to arrange $500k in tax deferred funds and $100k in taxable accounts so that I can ER.
I'm 50, my mortgage is paid off, I get $1200 a month from rent, I've done my budgeting, planned for healthcare, decide what I want to do after work and to make early retirement a reality all I need to do is generate $24k in the first year from my capital and then keep up with inflation.
I plan to account for the variation in return by using a cash/short bond
buffer that I will replenish from dividends and gains in the good years and draw down in the bad years to avoid selling at a loss or if income and dividends are off.
I will have to do a 72t to bridge the years between 50 and 59.5.
As things stand now I'll get a $5k/year COLA pension at 59, $15k/year US SS and $15k UK SS at 66, but I don't want to consume principal between 50 and 66 so the that's why I'd like to gear the portfolio to produce $24k the first year and increase it by 3% inflation annually. Here's my portfolio plan.
Taxable
$25k cash
$75k International Admiral
Tax Deferred
$200k Total Stock Market Admiral
$75k Wellesley Admiral
$75k Short Term Bond Admiral
$75k Total Bond Market Admiral
$75k Inflation Protected Securities Admiral.