Could you please take a look at my plan and let me know what you think?
I am 56 and feel retired even though I haven't officially pulled the plug.
I have income from 2 businesses that are winding down that I expect to see me through until I'm 60. When the businesses end my retirement will be official.
I don't have a pension but do have some real estate related guaranteed income streams that together will generate about $12,000 a year for the next 22 years.
I have $2 million total broken down with $1 million in IRA, $260k in Roth, $740k in taxable and $75k in HSA. Estimated Yearly Spending is $80k.
My plan is to build a tips ladder in the IRA ($770k) for the 11 years between ages 60 and when I claim Social Security at age 70. Each rung will have the $70k or so more per year I need for that year plus years 12-15 ($99k) to fund the difference that Social security won't cover when it starts. I will reinvest any interest earned into future tips years in the IRA as long as there are funds to do so.
The taxable fund, Roth IRA and rest of the IRA will be in stock funds with the most in VTSAX and the rest in the international stock fund VIDGX. I will keep a small amount of cash in taxable as well.
This makes the AA: 50/44/6
If I'm still around when I'm 85, I have a QLAC that starts then that will provide $144k per year which I'm treating as my long term care insurance.
What do you think? Anything that could be better or might trip me up?
Thank you.
I am 56 and feel retired even though I haven't officially pulled the plug.
I have income from 2 businesses that are winding down that I expect to see me through until I'm 60. When the businesses end my retirement will be official.
I don't have a pension but do have some real estate related guaranteed income streams that together will generate about $12,000 a year for the next 22 years.
I have $2 million total broken down with $1 million in IRA, $260k in Roth, $740k in taxable and $75k in HSA. Estimated Yearly Spending is $80k.
My plan is to build a tips ladder in the IRA ($770k) for the 11 years between ages 60 and when I claim Social Security at age 70. Each rung will have the $70k or so more per year I need for that year plus years 12-15 ($99k) to fund the difference that Social security won't cover when it starts. I will reinvest any interest earned into future tips years in the IRA as long as there are funds to do so.
The taxable fund, Roth IRA and rest of the IRA will be in stock funds with the most in VTSAX and the rest in the international stock fund VIDGX. I will keep a small amount of cash in taxable as well.
This makes the AA: 50/44/6
If I'm still around when I'm 85, I have a QLAC that starts then that will provide $144k per year which I'm treating as my long term care insurance.
What do you think? Anything that could be better or might trip me up?
Thank you.