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Hi I am 30 and starting to plan for ER
04-20-2005, 06:40 AM
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#1
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 402
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Hi I am 30 and starting to plan for ER
Hi I am 30 and starting to plan for ER,
I currently have approximately 32,000 in a 401k, 16,000 in a cash value pension, and 1,800 in an IRA. I am also currently paying down non-house debt (Hopefully have that done in 3-4 years.) Mainly I wanted to get people's opinion on the types of investments I have in my 401k:
% of Total FEE Fund
10% .61% Lehman Weighted High Yield/ Emerging Market Index (Bonds)
3% .06% Russell 1000 value index
3% .05% Russell 1000 growth index
20% .15% Morgan Stanley REIT Index
15% .07% Russell 2000 Growth Index
35% .05% Russell 2000 Value Index
6% .25% Morgan Stanley Capital Int. Pacific Free Index
6% .20% Morgan Stanley Capital Int. Europe Index
2% .04% Company Stock
Any comments and suggestions would be appreciated!
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Whatever you do will be insignificant, but it is very important that you do it.
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 07:27 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Hi I am 30 and starting to plan for ER
I'd "lose" the REIT's.... that's about it. Your house is enough real estate exposure IMHO. If you enjoyed the last 5 years of strong REIT returns, congraduations. Its now time to take your profits.
Looks good.
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 07:33 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
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Re: Hi I am 30 and starting to plan for ER
May want to cut back on the REITs. I don't think the index will do well as a whole & only a few small pockets of REITs will do well with rising interest rates. I do like your move towards value.
Expand a little on the non-house debt...
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 07:38 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Hi I am 30 and starting to plan for ER
yeah 60K in non-house debt is quite a bit. If not primarily school loans, then you'll need to do quite a bit of reprioritization to be in the ER league. Heck, that's probably well above typical for just the average person, much less an ER minded-one. Just being honest.
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 07:54 AM
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#5
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 402
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Re: Hi I am 30 and starting to plan for ER
Yes I know it is a lot of debt, that is why we are trying to pay it off aggressively so that we can be in the ER league. Mainly it consists of a timeshare (no way to sell for even a fraction we paid), a car we are upside down in, and some money we borrowed for a downpayment on our home.
Trying to get out of debt is what lead me to find this message board so I at least have my dumb past decisions to thank for that!
Don't worry about offending me, I know that it is above average and I actually like being reminded of the fact. It helps keep me motivated.
__________________
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Whatever you do will be insignificant, but it is very important that you do it.
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 08:00 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Hi I am 30 and starting to plan for ER
Except for matching contributions for your work 401(k), i'd strongly consider redirecting your other monthly savings to exclusively paying on those debts. Do that plus work on a nice emergency fund if you dont already have one (shoot for at least 3 months of expenses worth).
Once those are knocked out, then you'll have quite a bit more money to redirect towards your IRAs and be in a much safer financial position to boot for any unexpected short-term financial emergencies.
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Re: Hi I am 30 and starting to plan for ER
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04-20-2005, 08:35 AM
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#7
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 402
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Re: Hi I am 30 and starting to plan for ER
That is good to hear, that is what I am currently doing.
__________________
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Whatever you do will be insignificant, but it is very important that you do it.
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