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How's this plan?
Old 03-03-2014, 04:54 PM   #1
Dryer sheet wannabe
Join Date: Jan 2014
Posts: 22
How's this plan?

Hi Everyone,
DW and I are 32. We wish to RE at 50. I will be fortunate enough to have a pension of $120,000 when I reach 55. My plan is to fund age 50-60 with taxable brokerage account (and the pension when it kicks in at 55). Then, fund 60-death with retirement accounts and pension.
We are both working VERY hard and staying VERY frugal as we advance in our careers. I'd like to be able to budget $200,000/year in retirement. We would probably never spend that much, but it would be nice to know that amount is available for travels and hobbies.
Here's where we are so far...
Brokerage: $60K
Retirement accounts: $300K
We are putting ~40K away every year. As we advance in careers, we plan to put even more away towards our goal.

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Old 03-03-2014, 05:06 PM   #2
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Is that 120K COLA'd?
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Old 03-03-2014, 05:33 PM   #3
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Sounds good. I suggest that you put away each year now at least 50% of what you expect to withdraw each year from your portfolio. So $200,000 - $120,000 = $80,000 and 50% of that is $40,000.
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Old 03-03-2014, 05:48 PM   #4
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While it is great to have a plan and a focus, don't deprive yourselves - balance planning and saving for the future with living for today.

I suggest that you put you plan into Quicken Lifetime Planner and see how it looks.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 65/35/0 AA TBD
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Old 03-03-2014, 06:04 PM   #5
Dryer sheet wannabe
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@sengsational, yes it is COLA'd, but only at 1/2 CPI
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