LaurenLuna
Dryer sheet wannabe
Good morning - I've been doing a lot of reading about creating bond tents, developing glide paths, etc. for those nearing retirement. I am planning to retire next year, 2019, and I am concerned about any significant market corrections between now and then - when I'll have more a lot more time to refine a withdrawal strategy, fine tune my expenses, etc. Right now, I am busy downsizing, packing, wrapping up my career, etc.
So basically, I am looking for a strategy to protect what I have between now and then and after that, I will work on withdrawals and AA tweaking.
I have been rebalancing from equities to bonds, maybe I have overdone it?
Where I am now:
TAXABLE:
cash - $80K
I-Bonds - $145K
CDs - $60K
International Stock Market Index - $215K
VTSAX (Total Market) - $80K
NON TAXABLE/TAX DEFERRED
Federal Govt TSP Plan:
G Fund (bonds)- $700K
C Fund (broad index) $25K
S Fund (small caps) $25K
Roth IRA - Total Market Index - $75K
REIT Index - $75K
HSA Account - Total Market Index - $20K
I am retiring after only 10 years of federal service at the minimum retirement age - (to get the health insurance), so my pension will be reduced by a 20% discount for retiring before age 62, my annual federal pension will be only about $12K a year. In order to get the health insurance, there is also a requirement to take an immediate pension.
I am eligible, but have not yet begun to draw, another private sector pension, currently worth about $800/month and rising every year until I reach 65. That pension is well funded, secure.
Social Security currently calculated to be about $1,850 when I reach 62 and of course, more if I take it later.
I am anticipating annual expenses of a minimum of $50K - $55K. If it turns out I can spend more, I will be happy to do that LOL. I do not have plans to leave any legacy. I do not own a home, I currently rent, so looking at buying a retirement home somewhere - debating a mortgage versus using assets.
Thanks if you've made it this far in reading, LOL. I would truly appreciate any outside views, recommendations or comments on my situation.
So basically, I am looking for a strategy to protect what I have between now and then and after that, I will work on withdrawals and AA tweaking.
I have been rebalancing from equities to bonds, maybe I have overdone it?
Where I am now:
TAXABLE:
cash - $80K
I-Bonds - $145K
CDs - $60K
International Stock Market Index - $215K
VTSAX (Total Market) - $80K
NON TAXABLE/TAX DEFERRED
Federal Govt TSP Plan:
G Fund (bonds)- $700K
C Fund (broad index) $25K
S Fund (small caps) $25K
Roth IRA - Total Market Index - $75K
REIT Index - $75K
HSA Account - Total Market Index - $20K
I am retiring after only 10 years of federal service at the minimum retirement age - (to get the health insurance), so my pension will be reduced by a 20% discount for retiring before age 62, my annual federal pension will be only about $12K a year. In order to get the health insurance, there is also a requirement to take an immediate pension.
I am eligible, but have not yet begun to draw, another private sector pension, currently worth about $800/month and rising every year until I reach 65. That pension is well funded, secure.
Social Security currently calculated to be about $1,850 when I reach 62 and of course, more if I take it later.
I am anticipating annual expenses of a minimum of $50K - $55K. If it turns out I can spend more, I will be happy to do that LOL. I do not have plans to leave any legacy. I do not own a home, I currently rent, so looking at buying a retirement home somewhere - debating a mortgage versus using assets.
Thanks if you've made it this far in reading, LOL. I would truly appreciate any outside views, recommendations or comments on my situation.