Rocket_J_Squirrel
Dryer sheet wannabe
- Joined
- Oct 14, 2007
- Messages
- 16
I've watched the Retire Early forums for the past few years and have finally decided to post. Hi there!
I took ER a year ago from super-mega corp and received a nice package to say 'good-bye' - which was very nice. I have a great deal of experience in managing large budgets for super-mega corp and have been very fortunate in assembling a nice nest egg for my family and myself. I have analyzed, projected, and pro-forma'd, my expenses so I have a very firm handle on knowledge of my family operating expenses and have not cut back on anything from when I was employed full time. Medical is provided at a subsidized rate by super-mega corp.
DW is ten years younger than me and plans to work until 55 with a $50k income. Super-mega corp asked me back to work projects so I work about half-time and earn about $100k for this part time work (I could work more but do not want to). None of my income is used for living expenses - I'm funding my chilrens gratuate eduction or paying down the mortgage with this money - after taxes are taken - and the government takes a lot! Since I ER'd before age 55 I am not eligible to withdraw from a 401k so I rolled into an IRA where I take a SEPP withdrawal each year to cover living expenses. No debt except the mortgage, two of three kids through college and the third will begin next year and money has been saved to cover tuition/room & board/books/etc., for four years. I also have plenty of nice toys that I purchased before I ER'd so no real need to buy anything for a while.
So things are good...
The question I have is to find out if any others out there have as big of risk aversion as I do. My current overall asset allocation for me and DW is 75% cash, 4% fixed income, 1% REIT, 14% domestic equity, and 6% foreign equity. Most of the cash is with Vanguard and the other investments are with either, Vanguard, Fidelity, broker, banks, etc.
This combination throws off more than enough funding to cover my annual SEPP withdrawal - the SEPP withdrawal will take two-thirds of this year's earnings and the remaining one-third will be reimvested to grow the nest egg.
I can't see taking a big equity risk when I really don't have to.
I look forward to hearing from the board members from their experience and expertise with finance and life.
Thoughts?
RJS
I took ER a year ago from super-mega corp and received a nice package to say 'good-bye' - which was very nice. I have a great deal of experience in managing large budgets for super-mega corp and have been very fortunate in assembling a nice nest egg for my family and myself. I have analyzed, projected, and pro-forma'd, my expenses so I have a very firm handle on knowledge of my family operating expenses and have not cut back on anything from when I was employed full time. Medical is provided at a subsidized rate by super-mega corp.
DW is ten years younger than me and plans to work until 55 with a $50k income. Super-mega corp asked me back to work projects so I work about half-time and earn about $100k for this part time work (I could work more but do not want to). None of my income is used for living expenses - I'm funding my chilrens gratuate eduction or paying down the mortgage with this money - after taxes are taken - and the government takes a lot! Since I ER'd before age 55 I am not eligible to withdraw from a 401k so I rolled into an IRA where I take a SEPP withdrawal each year to cover living expenses. No debt except the mortgage, two of three kids through college and the third will begin next year and money has been saved to cover tuition/room & board/books/etc., for four years. I also have plenty of nice toys that I purchased before I ER'd so no real need to buy anything for a while.
So things are good...
The question I have is to find out if any others out there have as big of risk aversion as I do. My current overall asset allocation for me and DW is 75% cash, 4% fixed income, 1% REIT, 14% domestic equity, and 6% foreign equity. Most of the cash is with Vanguard and the other investments are with either, Vanguard, Fidelity, broker, banks, etc.
This combination throws off more than enough funding to cover my annual SEPP withdrawal - the SEPP withdrawal will take two-thirds of this year's earnings and the remaining one-third will be reimvested to grow the nest egg.
I can't see taking a big equity risk when I really don't have to.
I look forward to hearing from the board members from their experience and expertise with finance and life.
Thoughts?
RJS