Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Path for Semi-Retirement
Old 01-08-2005, 09:19 AM   #1
Recycles dryer sheets
 
Join Date: Sep 2004
Posts: 330
Path for Semi-Retirement

Age 52, have 200k in fixed income investments @3.5-4%, want to cont working 10-15 hrs / week(for travel money and IRA) and withdraw from the fixed income acct $2,200/ month for living expenses for 8 years til age 60.
Have 500K in long-term IRA monies 1/2 Vanguard (stocks 75%/bonds 25%) and 1/2 in Annuity (stocks 80%/bonds 20%) that should grow nicely over 8-9 years to a little over a million and then begin to draw down starting at age 60 (full retirement) at 4K per month. I'm assuming a modest/conservative 6-7% after expense return on the long-term IRA monies.
Any ideas / opinions on the plan.
ferco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Path for Semi-Retirement
Old 01-08-2005, 10:32 AM   #2
 
Posts: n/a
Re: Path for Semi-Retirement

Looks good to me.
  Reply With Quote
Re: Path for Semi-Retirement
Old 01-08-2005, 05:33 PM   #3
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
Re: Path for Semi-Retirement

Have you tried FIREcalc? It might give a good idea whether you have enough. It seems that you have sufficient saving since you are only withdraw less than 4% out of your portfolio (2200/(200000+500000)). You may not even have to work part time. Good luck.

Spanky
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Path for Semi-Retirement
Old 01-08-2005, 06:21 PM   #4
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Path for Semi-Retirement

Quote:
Have 500K in long-term IRA monies 1/2 Vanguard (stocks 75%/bonds 25%) and 1/2 in Annuity (stocks 80%/bonds 20%) that should grow nicely over 8-9 years to a little over a million
Ferco, one thing jumped out at me - that your $500,000 will double in 8-9 years. That would require a return of 8-9% (rule of 72). Maybe, but I wouldn't bank on it. If you're planning to pull $48,000/year out of that starting in 8 years, you may encounter problems if you're starting with $700K or $800K instead of a million. *Also, you didn't say whether you will need $48,000 in today's dollars in 8-9 years. If that's the case, I think you'll encounter difficulties.

Quote:
Age 52, have 200k in fixed income investments @3.5-4%.
You can get 5.25% on a five year CD at PenFed right now.
Bob_Smith is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Policy Promotes "Early" Retirement REWahoo FIRE and Money 19 07-21-2017 02:10 PM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 06:17 PM
Targeted retirement funds - I don't get it. HBH FIRE and Money 7 03-11-2006 01:58 PM
Wondering about Retirement garrynky Hi, I am... 14 07-20-2005 08:34 PM
Scott Burns: Stay safe on retirement spending PL FIRE and Money 49 12-22-2004 10:59 AM

» Quick Links

 
All times are GMT -6. The time now is 04:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.