help in planing

[ed teach]

I would like some opinions to use as a sounding board. I have been a lurker here for a while.
Myself and my wife are 42, we have been married for 24 years, and both worked from the day we got married.
I have worked in construction and she in different jobs up to 9 years ago, she had an opertunity to be trained on the job in title closing,escrow,ect.
My back and knees are starting to show my work choice. I have been a floorcovering installer, and we owned our own store for 7 of the 22 years that I have been doing this type of work. she was given a management posistion of an office, but a rival company asked her to work for them, we talked about it, and decided that she would ask for 3 months off in the winter.
We live in the north and want to move south, but we are not quite ready financialy.
they gave her a raise so she will make aprox. what she made in 12 months,agreed to let her take out insurance pre tax to pay for the 3 months she is gone.
I had a partner till 4 years ago, that I worked with in instalations.
We borke up, and I have taken on smaller jobs to keep some money coming in.
togeather we have saved 835k cash, mostly kept in cd's of that appx. 45k is in stocks and mut. funds, 15k is cash another 5 in ee savings. I deposit 6k a year to ira's to get the tax write off. this year will be 8k.
As my income is speratic. I started to draw 1k a month from the cd intrest, my wife pays most of the bills from her income, and I save what I make in cd's, [some goes to my gun colection, as it stands now I have 99 firearms]
We have one rental that brings in 500 a month, we own it free and clear same with our house.
the rental is not pure profit, taxes,insurance, ect.
My idea was to keep doing what we are for 4 to 5 years. we are dinks, we were not able to have kids. this has been very good for saving money and doing what we want, we have been all over europe 2 times, and traveled all over the us. but we have not had the joy of watching children grow up. If it has not happened by now it will not, most likely.
My question is what do I need to do to get to a point of retireing early.
I got my realestate lice. and worked for an agency for appx 3 months, just before it went belly up. did not loose any money, but did not make any, not to bad as it is a great write off. millage on the car.
the company was purchased and is supposed to reopen this march, and my old broker wants me to join the team.
The problem is that realestate is not doing so good, at least in my area.
some parts of the country it may be but not here.
any way opinions are welcome. thanks

 

[Shredder]

Sounds like your shopping for a plan. You need to come up with a plan of your own, everyone here who is retirered did it different ways. Reading past posts here will give you lots of ideas. First you may want to get up on your finiacials, probably best to read some good books, like "The Four Pillars of Investing" by Berstein maybe some books by L. Swedroe, maybe "The Coffeehouse Invester". Then set down with your wife and decide how much you need, what kind of lifestyle you want, and how you will get there. Also what do you want to do? Travel? Fish? whatever you decide that will factor into your plan. Take your time, read, learn, plan, and make your dream come true. Best of luck...Shredder

 

[haha]

The problem is that realestate is not doing so good, at least in my area.
some parts of the country it may be but not here.
any way opinions are welcome. thanks

You guys have put together a lot of savings. Congratulations to both of you. As for work going forward, you have the kind of background that places like Home Depot want in their sales associates. Still a pretty active job, walking around all day. But at least you are walking, not crawling!

Whatever you do, I would be inclined to go slow about making any big changes, especially in the investment area. You 've done well.

Mikey

 

[ed teach]

I totaly agree with you on going slow, that is why I like the idea of going south for three months a year for a while.
That way I can find a town that we feel comfortable in, and we dont rush to make a move before our time.
I just need to get out of the snow and cold, it makes my body ache.
I can still keep some contacts here to do some small jobs to support my hobbies.
And I really do love my home, we live on 80 acres and I have my own shooting range. nothing super but a nice little shooting booth and a 50 and 100 yd back stop.
but it is all to cold in the great white north in the winter. even though it is nothing like when I was a kid, global warming is coming way to slow for me, I will be 98 when the temps get nice enough to live here year round. lol

 

[Sparky]

It sounds like you are there already. At 4% yearly withdrawal, if you can live on $33,400, you've made it.

DH and I are 44 and 45, retired a little over one year. We were DINKS too - now just NKS, I guess. We own our home outright. A big stickler was health insurance. We got a $5,000 deductible policy for $193 per month for both. We are on high blood pressure and high cholesterol meds that we pay for outrigth.

 

[Hyperborea]

It sounds like you are there already.  At 4% yearly withdrawal, if you can live on $33,400, you've made it.

I'm not sure that's so. With such a low allocation to equities the survival of the portfolio would be questionable. And that's for 30 years never mind a possible 50 years of retirement. I would suggest that the current 5% allocation to equities is far too low. The OP may not feel comfortable with 50-80% equities but 20% should probably be a bare minimum with 40-50% well diversified a much safer alternative.

 

[unclemick]

Take a hard look at Vanguard Target Retirement Series - it can be that simple - i.e. one fund.

taxable versus tax deferred issues? - check out the REHP here on any 72t issues you might have.

 

[ed teach]

I am puting in the 8k a year into our Ira [4 each account] If for nothing else a tax deduction as I am not using the income from the cd's at this time.
I have been puting it into the one fund from chase. it is a no load fund. that is a value index fund. so it fits well with my conservitive investments, that I feel comfortable with.

 

[John Galt]

I'm thinking of starting a new topic.....................................
"Stocks in ER, why bother?"

JG

 

[Hyperborea]

I'm thinking of starting a new topic.....................................
"Stocks in ER, why bother?"  

JG

In which you will explain what asset allocation should be used by a 35 to 45 year old retiree without a working wife (who also doesn't want to work in "retirement" themselves) and who will want more than their social security may bring in 20 to 30 years. Note that even if they get SS it will be much reduced because of the low number of contribution years and with the current administration the odds of getting it are reduced . I'm waiting with anticipation for your "system".

 

[unclemick]

Since I know some of those cats - from raw land only buyers to small apartments only - I curious also, since in the past we can't seem to transend the "location, location, location" thing.

The best I know was back in Littleton, CO - my apartment building owner was an ex salesman for an aerospace company, had quit due to nerves, high BP.

Had eight apartment buildings at that time and gave his son one for his twenty first birthday.

His idea of work was to putz with laundry room machines - to keep busy. Hired out everything else. Talkative fella - almost convinced me. Stocks were trash in the early 70's.

 

[Sparky]

We own a 2 bedroom condo outright less than 1 hour from Manhattan. We've done well on our investment. We can always move to a less expensive area if needed.

We're about 75% stocks, 25% bonds/cash. Pension and, hopefully, SS in about 21-23 years.

We've taken care of heath insurance, fixed expenses. It's been scary doing this on our own - we're not from rich families. We read Your Money or Your Life in 1997 and started saving like crazy.

I was in Manhattan on 9/11 - this changed everything - it seemed very important to stop doing our stupid jobs.

So far so good. We're a little over one year into this and doing okay.

Sparky

 

[JOhn Galt]

Hello Hyperborea! If I was young (which I am not)
my "system" would be "real estate, real estate, real
estate". No stocks! But, that's just me. I understand
all of the "pro equities" arguments and if I was
younger (which I am not), I might have gone that way myself. But, once I saw the Pot of Gold at the end
of the RE rainbow....................that was all she wrote,
equities-wise. The bottom line is that those who are
relying on equities to fund their retirement are relying
on a lot of "history". That's okay, but I don't have time to wait.

JG

 

[Sparky]

Hey John, correct me if I'm wrong - you are over 60, have $200K and a working wife, yes?

This is a far cry from a 40 year old doing ER.

Do you have a pension and SS as well as a working wife?

It's kindof unfair for you to be consistently omitting these facts - you make it sound as if anybody can RE on $200 at 40 - really not at all the case.

 

[John Galt]

I confess to omitting some facts as I am uncomfortable
sharing every detail of my life, even anonymously. If anyone thinks that is "unfair", I apologize. Unless I was
just screwing around, everything I have posted is as true as I could make it. I'm afraid that's the best I can do.

JG

 

[Mike G.]

Hey, Mr Ayn Rand! As the previous poster said, stop dispensing your peter-pan advice to the whole world.

From what you have said about your age, etc and your WIFE STILL WORKING, guess what....you ain't E.R., you're just plain "R"!

 

[JOhn Galt]

You're right. I am no longer "ERed", I am just plain "R".
I'm afraid I won't be able to comply with your request to stop dispensing "advice" though. That trait is hardwired

JG

 

[haha]

We own a 2 bedroom condo outright less than 1 hour from Manhattan.

Sparky, can you reach Manhatten on a subway, or would you need a train or car? I turn over in my mind returning to NYC for a while. I would rent apt, but couldn't handle Manhatten rents.

Mikey

 

[Sparky]

There is only train service to Grand Central Terminal, no bus. We are in CT - you could drive but it's a bitch.

Sparky

 

[haha]

And I really do love my home, we live on 80 acres and I have my own shooting range. nothing super but a nice little shooting booth and a 50 and 100 yd back stop.l

ed teach, this sounds very nice. I have a 25 yd pistol range. I have a nice backstop made from 1/2" plate. Nothing but woods behind for at least a mile. I kick myself because I had a chance to buy an adjoining piece with a canyon and a nice natural backstop. I was too cheap, and it has gotten real expensive recently.

Mostly I just shoot my old Colt Officer's Model .22 revolver. Sometimes my Sig or HK P-7 (9s).

Mikey

 

[Sparky]

Sorry - subway is only in the Manhattan and boroughs of Queens, Brookyn & Bronx - NJ, Westchester County, NY and Fairfield County, CT - only train.

Further out - you can take the bus - but it takes at least 1 and 1/2 hours each way.

NYC is still a beautiful lady and misses you!

We're going to see "Who's Afraid of Virginia Woolf" on Broadway in May. For us, it's 50 minutes by train each way.

Sparky

 

[Sparky]

Mikey!

Holy cow! You guys have a lot of acres! I am jealous! Where do you live with so much elbow room? Here on the East Coast, its wall to wall people! If I started shooting my Charter Arms Bulldog .44 I would be in trouble right quick.

btw...if you visit NYC anytime soon, leave the H-K home and put your trust in the machine-gun (H-K's also) weilding cops all over the city now.

 

[haha]

Holy cow!  You guys have a lot of acres!

Haha, I wish! It just happens that there is large plot of state land right behind me. So with a very good backstop, and umpteen thousand trees, and essentially no people anyway, I feel safe enough. Still with I had bought the piece alongside with a deep canyon.

Mikey

 

[haha]

NYC is still a beautiful lady and misses you!
We're going to see "Who's Afraid of Virginia Woolf" on Broadway in May.  For us, it's 50 minutes by train each way.Sparky

Sparky, that sounds perfect. My son just got back from a couple of weeks in NY, and he really has me fantasizing. Last time I lived there was summer 1965. I sublet a place on Bleeker Street from a friend who went to Europe.

I saw "Who's Afraid" in Boston in fall of '64 I think. I was coming to the end of a love and an older women in my building offered to take me. (She would seem wonderfully young to me now!) Anyway, listening to George and Martha bicker for 2 hours almost did me in. I still remember that it gave me an awful stomach ache. When I saw the movie later it wasn't nearly as powerful. Or maybe I just remembered to have a drink before I went.

Anyhow, have fun and thanks for the info re subways.

Mikey

 

[ed teach]

I live in north Michigan, I made my back stops when I built my house, when I rented the bobcat to landscape, I ran it to the field I shoot in and mounded up some dirt, then stacked some railroad ties in front.
then built a 8x8 roofed shooters shack,
with bench and deck.
nice when it is raining.
I have to many guns, but cant get rid of any. my newest is a Sauer 38h Nazi marked, and a Beretta 92fs
it came with 2 high cap mags.
I have a Taurus 92 stainless steel but it just was not a Beretta. lol
I have been collecting guns [my main hobbies] since I was 14 yo. I just gave up radio controlled flying and sold all my planes. to focus on the guns aspect.
I also reload my own ammo. I enjoy that as much as shooting.
We also have had for a few years now in Michigan, a shall issue ccw. I just renewed my lic. and now it is good for 5 years.
I have taken my gun on planes [stowaway only] and carried in states that rec. my ccw. key west, George, Louisiana, now I can drive all the way to fla. with out unstraping.
my carry gun is a firestorm 380, these little guns are very high quality, = to a walther/hsc that they copy. and all for 198, I use an under the arm shoulder holster.
I never thought we would get the law through here. being a liberal Mecca in Wayne county, Oakland, and the like run the state. you get past sag. and bay city, and it is all red baby. btw, john gault,, I am with you, even though I am an atheist, I still go repub. just cant stand the we know best what is good for you, don't cut trees,don't eat meat or wear fur, hunting is bad, and if some one want to rape you call the cops you cant protect yourself, among other crap liberal ideas.