I plan to retire next year (2024) and I need at least $55K per year from my portfolio to bridge the gap for 4 years until other income sources kick in. Currently, I have allocated a portion ($220k) of my 401k portfolio investment in the Interest Income fund with a rate of return around 3%. The Interest Income fund is the safest investment fund in our 401k. I will be using the Rule of 55 to drawn down on these dollars in my 401k. At age 59 ½ (2 yrs. from now), I could move these funds to a TIRA.
Over the next 4 years, how should I invest the $220K to achieve my goal. I would like to get some annual return (at least 6%) on my money as well.
For example, would this strategy work.
1. Year 1 – Leave $55K in Interest Income Fund. Invest the remaining $165K in 100% equity.
2. Year 2 – Leave $55K in Interest Income Fund. Invest the remaining $110K in 100% equity.
3. Year 3 – Leave $55K in Interest Income Fund. Invest the remaining $55K in 100% equity.
4. Year 4 – Invest $55K in Interest Income Fund. Leave the remaining balance in the Equity fund to grow.
The investment options in our 401k are limited. Would love to hear your approach and strategy.
Over the next 4 years, how should I invest the $220K to achieve my goal. I would like to get some annual return (at least 6%) on my money as well.
For example, would this strategy work.
1. Year 1 – Leave $55K in Interest Income Fund. Invest the remaining $165K in 100% equity.
2. Year 2 – Leave $55K in Interest Income Fund. Invest the remaining $110K in 100% equity.
3. Year 3 – Leave $55K in Interest Income Fund. Invest the remaining $55K in 100% equity.
4. Year 4 – Invest $55K in Interest Income Fund. Leave the remaining balance in the Equity fund to grow.
The investment options in our 401k are limited. Would love to hear your approach and strategy.