Believe we are on the way, but....

[pb4uski]

Quote:

Originally Posted by BaseballCoach ....I want to do what I can to invest for retirement, but don't want to miss out on these years by being so focused on "the number." Thank you again.

You're welcome. You are spot on... it is a delicate balance between living life for today while at the same time saving for a secure future.

[The Cosmic Avenger]

Quote:

Originally Posted by BaseballCoach Thank you Mr. Ed. I need to re-read this when that downturn does happen. Growing 10xs to $6M is very impressive. I believe as I get closer to retirement I will scale back my equity exposure as well. How soon should I do that 5 years out, 10 years out? Thanks again.

IMO that depends on your plan. If you start accruing cash for the first year or two of living expenses AND you have a lot of flexibility to scale back your retirement spending, I would wait until a year or two before retiring to pull back. Some people use this type of strategy to stay heavily in equities in retirement, figuring that the growth outweighs the volatility, and they can wait out any 3-5 year drop in favor of higher returns in the long term.

If you prefer a more cautious approach, 5 years is usually a fairly conservative time span historically to recover from a depression, so I wouldn't shift to your "retirement allocation" more than 5 years out, although a gradual shift in AA is very common.

[BaseballCoach]

Quote:

Originally Posted by The Cosmic Avenger IMO that depends on your plan. If you start accruing cash for the first year or two of living expenses AND you have a lot of flexibility to scale back your retirement spending, I would wait until a year or two before retiring to pull back. Some people use this type of strategy to stay heavily in equities in retirement, figuring that the growth outweighs the volatility, and they can wait out any 3-5 year drop in favor of higher returns in the long term. If you prefer a more cautious approach, 5 years is usually a fairly conservative time span historically to recover from a depression, so I wouldn't shift to your "retirement allocation" more than 5 years out, although a gradual shift in AA is very common.

Thank you. I have looked at that as well. Also, my side business has grown well. Will it still be around in 20 years? Who knows. I know I enjoy the entrepreneurial side of things so I figure I will be tinkering with some business at that time. Then I could pull out 5 years or so of living expenses and still keep my exposure to equities. My risk tolerance at this time in my life says this will be my plan, but I will see how I feel at 50 or 55 years old.

Thanks again.

[retire202052]

What about your teacher pension?

[BaseballCoach]

Quote:

Originally Posted by retire202052 What about your teacher pension?

Thank you for the question. I am a college instructor and have a more portable retirement than the typical - rule of 80 teacher pension. Basically they put in 7% and I put in 7% and I can invest it anyway I would like. This will continue to be funded until I retire. Around 10k per year until I retire.

[kgtest]

Good to go. Waay ahead of me, in terms of annual spend, and your nest egg. I still owe 300k on my home and am not nearly as well off as you. Good luck!

[BaseballCoach]

Quote:

Originally Posted by kgtest Good to go. Waay ahead of me, in terms of annual spend, and your nest egg. I still owe 300k on my home and am not nearly as well off as you. Good luck!

Thank you very much. It sounds like you are doing very well yourself based on the info. at the bottom of your profile. I wish you the best of luck as well.