Hope2Retire
Confused about dryer sheets
- Joined
- Dec 6, 2005
- Messages
- 1
Hi folks,
I am looking to answer the following questions and get a sanity check
1. What is a reasonable target "number" and age to reasonably consider cutting lose? Given the 4% rule, if my expenses are 35k a year (plus lets say 10k a year for health insurance and unknowns) - I come out to 1.2 million. If I am saving 75-80k a year, I figure I could pull this off conceivably by age 39 barring any bear markets. Is it crazy to think that I can retire NOW (or soon) drawing 20-25k out of my investments and then working part time?
2. What do I need to tweak in my portfolio given #1 in order to get there?
I understand that a 75% Diversified stock index to 25% High returning Bonds, CDs, etc, is a reasonably safe portfolio to have with good upside returns - and is the basis of the 4% withdrawel rate.
3. Based on my expenses, salary, etc. - how am I doing compared to other retire early types?
4. What am I missing?
Some basics:
I am 32 years old. I have a 550k portfolio. I have a girlfriend - no plans to have kids, potential plans to marry. Current income at job is 150k as a technology consultant and project manager. I spend roughly 35k a year on expenses and have done so for about 10 years. I save roughly 75-80k a year. I plan to stay in an apartment.
Monthly Expenses:
Rent: 650
Utilities: 200
Health Related: 100
Entertainment/Eating Out: 1000
Car expenses (Gas, Repairs, Maintanence, Replacement Costs): 250
Misc: 200
Groceries: 250/Month
Clothing, Toiletries, Etc. 50
------------
Total: 2650/Month
Portfolio:
120k in 401k - S&P 500
40k company stock
125k IBonds
125k 5.25% CDs
125k Stock portfolio (1/3 International Index, 1/3 Large Cap, 1/3 Small Cap)
20k Stock
Thanks - and I am glad you folks exist!
I am looking to answer the following questions and get a sanity check
1. What is a reasonable target "number" and age to reasonably consider cutting lose? Given the 4% rule, if my expenses are 35k a year (plus lets say 10k a year for health insurance and unknowns) - I come out to 1.2 million. If I am saving 75-80k a year, I figure I could pull this off conceivably by age 39 barring any bear markets. Is it crazy to think that I can retire NOW (or soon) drawing 20-25k out of my investments and then working part time?
2. What do I need to tweak in my portfolio given #1 in order to get there?
I understand that a 75% Diversified stock index to 25% High returning Bonds, CDs, etc, is a reasonably safe portfolio to have with good upside returns - and is the basis of the 4% withdrawel rate.
3. Based on my expenses, salary, etc. - how am I doing compared to other retire early types?
4. What am I missing?
Some basics:
I am 32 years old. I have a 550k portfolio. I have a girlfriend - no plans to have kids, potential plans to marry. Current income at job is 150k as a technology consultant and project manager. I spend roughly 35k a year on expenses and have done so for about 10 years. I save roughly 75-80k a year. I plan to stay in an apartment.
Monthly Expenses:
Rent: 650
Utilities: 200
Health Related: 100
Entertainment/Eating Out: 1000
Car expenses (Gas, Repairs, Maintanence, Replacement Costs): 250
Misc: 200
Groceries: 250/Month
Clothing, Toiletries, Etc. 50
------------
Total: 2650/Month
Portfolio:
120k in 401k - S&P 500
40k company stock
125k IBonds
125k 5.25% CDs
125k Stock portfolio (1/3 International Index, 1/3 Large Cap, 1/3 Small Cap)
20k Stock
Thanks - and I am glad you folks exist!