ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
Hi,
my name is Steve.
I discovered this sight last week & I'm very impressed.
Thanks to all those responsible.
Here's my situation.
My job is taking a huge physical & mental toll on me.
More specifically, it's the hours I work. (I'd rather not be anymore specific than that)
My investing background/experience:
I started an IRA in 1986 & added to it in 87-88-90
For whatever reason, I never added anymore after 1990.
In 1994, I opened an account at small brokerage firm in a bank in my hometown. I did alright there, but by 1998 was fed up with the ridiculous commission amounts & the fact that half the time I'd call 'my guy' was out of the office, or away for one reason or another.
I transferred the account to Fidelity & have been there ever since.
On January 1st 1995, I began contributing 5.00% each to my Employee Stock Purchase Program & 401-k. In early 2000 I upped it to 10.00% each, & in 2003 upped it to 15.00% each, where it remains today.
Current Assets:
Fidelity brokerage account: $ 314,000.00 **Taxable**
Vanguard 401-k $ 177,000.00
ESPP $ 79,000.00
IRA $ 15,000.00
Checking Account $ 15,000.00
Total: $600,000.00
Current Debt: Owe 10k on my home that's worth around 130k
The 1st part of my plan covers the 3.5 year period beginning July 1st 2013, & ending January 1st 2017 when I will begin collecting a pension.
My plan: Quit job & gradually sell all of my company stock & other non-income producing investments.
Take proceeds & add as evenly as possible to my basket of 16 dividend paying stocks.
Roll my 401-k into an IRA & begin the 72(t) SEPP program.
Write 'out of the money' covered calls on my stocks for extra income.
(I've been writing calls on my holdings since September 2010 & have done very well)
My (Approximate) monthly income would be as follows:
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment $ 700.00
$3,095.00 Per Month $37,140.00 Per Year
This is not a lot of money, but I live a very simple life & I've ran monthly budgets that show I could do it.
My biggest expense will be the COBRA insurance of $581.00 per month.
It's a very good plan & covers medical, dental, & vision.
I can carry this for 18 months after I quit, which would take me to January 1st 2015.
Hopefully by that time the 'Affordable Care Act' will have 'some' of the bugs worked out & I'll be able to buy a decent plan. I'm in reasonably good health & I'm almost positive I'll improve on that if/when I quit.
**Quit smoking 3 years ago**
Now we can fast forward to January 2017. God willing, I'll be 55 & eligible to begin collecting approximately $1,800.00 per month from a pension.
Assuming the 'powers that be' haven't destroyed the world by this this time, my income would look like this:
Pension: $ 1,800.00
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment $ 700.00
$4,895.00 Per Month $58,740.00 Per Year
If I'm still around five years later in 2022, (Age 60) I'll begin collecting another smaller pension of about $280.00 per month.
**I may or may not still be participating in the 72(t) program at this time**
As I understand it, once started, it must be continued for 5 years, or until you turn 59.5 whichever is last. This could effect the following income numbers.
Pension: $ 1,800.00
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment: $ 700.00
Pension B $ 280.00
$5,175.00 Per Month $62,100.00 Per Year
Finally, In 2024 I'll turn 62 & hopefully be able to begin drawing social security.
I realize a lot can happen between now and 2024. I may not even be allowed to draw @ that time, or could be 'means tested' heavily if I can.
I'll just have to wait & see.
At this point I'd be a couple years away from being medicare eligible.
Many questions about this program also.
I'll be glad to list the the stocks in my portfolio, or go into more detail about the covered calls if the questions arise, but I don't want my 1st post to be any more drawn out than it already is
Thanks for taking the time
Steve
my name is Steve.
I discovered this sight last week & I'm very impressed.
Thanks to all those responsible.
Here's my situation.
My job is taking a huge physical & mental toll on me.
More specifically, it's the hours I work. (I'd rather not be anymore specific than that)
My investing background/experience:
I started an IRA in 1986 & added to it in 87-88-90
For whatever reason, I never added anymore after 1990.
In 1994, I opened an account at small brokerage firm in a bank in my hometown. I did alright there, but by 1998 was fed up with the ridiculous commission amounts & the fact that half the time I'd call 'my guy' was out of the office, or away for one reason or another.
I transferred the account to Fidelity & have been there ever since.
On January 1st 1995, I began contributing 5.00% each to my Employee Stock Purchase Program & 401-k. In early 2000 I upped it to 10.00% each, & in 2003 upped it to 15.00% each, where it remains today.
Current Assets:
Fidelity brokerage account: $ 314,000.00 **Taxable**
Vanguard 401-k $ 177,000.00
ESPP $ 79,000.00
IRA $ 15,000.00
Checking Account $ 15,000.00
Total: $600,000.00
Current Debt: Owe 10k on my home that's worth around 130k
The 1st part of my plan covers the 3.5 year period beginning July 1st 2013, & ending January 1st 2017 when I will begin collecting a pension.
My plan: Quit job & gradually sell all of my company stock & other non-income producing investments.
Take proceeds & add as evenly as possible to my basket of 16 dividend paying stocks.
Roll my 401-k into an IRA & begin the 72(t) SEPP program.
Write 'out of the money' covered calls on my stocks for extra income.
(I've been writing calls on my holdings since September 2010 & have done very well)
My (Approximate) monthly income would be as follows:
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment $ 700.00
$3,095.00 Per Month $37,140.00 Per Year
This is not a lot of money, but I live a very simple life & I've ran monthly budgets that show I could do it.
My biggest expense will be the COBRA insurance of $581.00 per month.
It's a very good plan & covers medical, dental, & vision.
I can carry this for 18 months after I quit, which would take me to January 1st 2015.
Hopefully by that time the 'Affordable Care Act' will have 'some' of the bugs worked out & I'll be able to buy a decent plan. I'm in reasonably good health & I'm almost positive I'll improve on that if/when I quit.
**Quit smoking 3 years ago**
Now we can fast forward to January 2017. God willing, I'll be 55 & eligible to begin collecting approximately $1,800.00 per month from a pension.
Assuming the 'powers that be' haven't destroyed the world by this this time, my income would look like this:
Pension: $ 1,800.00
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment $ 700.00
$4,895.00 Per Month $58,740.00 Per Year
If I'm still around five years later in 2022, (Age 60) I'll begin collecting another smaller pension of about $280.00 per month.
**I may or may not still be participating in the 72(t) program at this time**
As I understand it, once started, it must be continued for 5 years, or until you turn 59.5 whichever is last. This could effect the following income numbers.
Pension: $ 1,800.00
Dividends: $ 1,518.00
Call Premiums: $ 877.00
SEPP payment: $ 700.00
Pension B $ 280.00
$5,175.00 Per Month $62,100.00 Per Year
Finally, In 2024 I'll turn 62 & hopefully be able to begin drawing social security.
I realize a lot can happen between now and 2024. I may not even be allowed to draw @ that time, or could be 'means tested' heavily if I can.
I'll just have to wait & see.
At this point I'd be a couple years away from being medicare eligible.
Many questions about this program also.
I'll be glad to list the the stocks in my portfolio, or go into more detail about the covered calls if the questions arise, but I don't want my 1st post to be any more drawn out than it already is
Thanks for taking the time
Steve