Hello from Tokyo, Japan….
I would not say that I am planning “early” retirement since I am 67 and already past retirement age -- at least the retirement age here in Japan. I have resided in Japan for 30 years. I first came to Japan as an US government employee and spent 20 years here on assignment. After 20 years, I had mandatory retirement from the federal government. For the past ten years I have been employed by a large global corporation here in Tokyo. My contract ends with the company at the end of September of this year, after which I will rely on my federal retirement. My retirement consists of my federal pension, Social Security, and the federal government Thrift Savings Plan (TSP). I also have three Vanguard IRA’s. My TSP savings are currently all in the L-2020 fund; however, since I am retiring this year, I am thinking of moving it to the L-Income fund, and also transfer my Vanguard IRA’s into the L-Income fund as well. My assets total $880,000 (TSP, 73.9%; Vanguard Long Term Bond, 7.5%; Wellesley Admiral, 9.2%; and REIT Index Admiral, 9.4%). The L-Income fund has an average annual return of 4.54% (0.38% per month). At that rate I figure that if I withdraw $6,875 per month that my combined TSP L-Income fund should last me until about 2029, at which time, if I am still around, I will be able to live comfortably off my pension and social security for the duration. Of course, I am affected by the yen to dollar exchange rate – which is an unknown variable. (I plan to remain in Japan with my family.)
I look forward to participating in the forums, which I just recently discovered, and welcome any comments or advice regarding my retirement plan.