Can I financially retire when I turn 57?

[Fermion]

Honestly Firecalc results above 90% are probably good enough considering how many other things may change in 9 years. ACA might change, taxes might change, SS might change. That remaining 10% I figure is just an unknowable. We may all be under robot overlords by 2035.

 

[Dtail]

Honestly Firecalc results above 90% are probably good enough considering how many other things may change in 9 years. ACA might change, taxes might change, SS might change. That remaining 10% I figure is just an unknowable. We may all be under robot overlords by 2035.

Nevertheless, still figuring out when to take SS.

 

[F.I.R.E User]

See my edited post above.

Also, those SS # assume I work till 70 which is incorrect.

95% is the enough right?

 

[Dtail]

Also, those SS # assume I work till 70 which is incorrect.

95% is the enough right?

95% is good enough for most. Everyone is different.
As was mentioned, go to the SS site with its calculator and input when you intend to stop working, so there will be zeros from 57 to 70.

 

[F.I.R.E User]

95% is good enough for most. Everyone is different.
As was mentioned, go to the SS site with its calculator and input when you intend to stop working, so there will be zeros from 57 to 70.

That % also takes a Depression like 1929 crash event?

 

[Dtail]

That % also takes a Depression like 1929 crash event?

Yes.

 

[F.I.R.E User]

Yes.

That’s impossible to happen again. 08-09 and 2020 sure but not 1929. So maybe 90% is good too?

 

[Dtail]

That’s impossible to happen again. 08-09 and 2020 sure but not 1929. So maybe 90% is good too?

Mathematically, one reduced failure would not equal a 5% difference.
You have to decide for yourself what a good success rate is acceptable.

 

[F.I.R.E User]

Can someone suggest if I should have any international fund in my portfolio?

 

[RetiredHappy]

Can someone suggest if I should have any international fund in my portfolio?

If we have a crystal ball that can see what happens into the future, we can and we will make lots of money.

Having international fund in one's portfolio is a form of diversification and may under perform, as it had in the past up until last year.

 

[Al18]

FSPSX and FSGGX are two broad based international index funds that have performed very well and have expenses of .03% and .05%

 

[F.I.R.E User]

If we have a crystal ball that can see what happens into the future, we can and we will make lots of money.

Having international fun in one's portfolio is a form of diversification and may under perform, as it had in the past up until last year.

What do you think of the funds I am invested in now?

 

[F.I.R.E User]

FSPSX and FSGGX are two broad based international index funds that have performed very well and have expenses of .03% and .05%

Is that part of the 2 or 3 fund Boglehead strategy?

 

[RetiredHappy]

What do you think of the funds I am invested in now?

I think what you have invested is just fine. I like stock/equities myself, and I like total market as well as S&P 500. You had asked if in the last 5 years before you retire if you should move some (20%?) to fixed income type investments and you probably should if you want to avoid SORR at some point before or immediately after you retire. We like MYGAs because they are easy to understand and purchase. Individual bonds are too much of a hassle and inflexible.

 

[Al18]

I'm not a Boglehead - don't know. FSPSX is all developed international fund, while FSGGX is 28% emerging market which can have better returns, but is usually more volatile. Here's a link from PortfolioVisualizer comparing both to a SP500 Index fund https://www.portfoliovisualizer.com/fund-performance?s=y&sl=43FBkLZ3PaaBMq6EfBcVUT

 

[Finance Dave]

Can someone suggest if I should have any international fund in my portfolio?

I recommend some international, as if things go south in the U.S., the int'l stocks may fare better...thus providing some diversification. Although I don't have any data, it seems to me that int'l ETFs/funds tend to be more volatile than U.S. based funds. I keep about 15% of my equities in int'l, but then I'm only about 25% equities all told...so that means only 3-4% of my total is int'l.

If you buy int'l, check out the composition. I like more "developed" country risk, so I find funds with Europe, Japan, Taiwan, South Korea, etc. For example, I would not invest in something like GQGIX, which has 30% of it's holdings in India and 14% in Brazil...or any fund with a lot of exposure in Africa.

 

[F.I.R.E User]

I recommend some international, as if things go south in the U.S., the int'l stocks may fare better...thus providing some diversification. Although I don't have any data, it seems to me that int'l ETFs/funds tend to be more volatile than U.S. based funds. I keep about 15% of my equities in int'l, but then I'm only about 25% equities all told...so that means only 3-4% of my total is int'l.

If you buy int'l, check out the composition. I like more "developed" country risk, so I find funds with Europe, Japan, Taiwan, South Korea, etc. For example, I would not invest in something like GQGIX, which has 30% of it's holdings in India and 14% in Brazil...or any fund with a lot of exposure in Africa.

Or 100% exposure in Venezuela?

 

[TickTock]

Can someone suggest if I should have any international fund in my portfolio?

Based on ~50 years, I suggest yes. US and international equities, over that period, are almost equal in return and volatility, but there are long periods (10+ years) when one outperforms the other. Blending in international is a diversification / risk reduction play.

 

[F.I.R.E User]

Based on ~50 years, I suggest yes. US and international equities, over that period, are almost equal in return and volatility, but there are long periods (10+ years) when one outperforms the other. Blending in international is a diversification / risk reduction play.

JL Collins recommends VTSAX. Not sure why he doesn’t mention international.

 

[TickTock]

Some folks like international, some don't. You'll find strong opinions pro and con on these boards.

FWIW, we own both VTSAX, VTIAX and VTMGX. The tax-managed international fund is in taxable funds, the other one in tax-deferred funds.

 

[F.I.R.E User]

Some folks like international, some don't. You'll find strong opinions pro and con on these boards.

FWIW, we own both VTSAX, VTIAX and VTMGX. The tax-managed international fund is in taxable funds, the other one in tax-deferred funds.

How old are you and do you have bonds?

 

[TickTock]

I'm 58. Our portfolio includes bonds, CDs, money markets, and MYGAs.

 

[F.I.R.E User]

I'm 58. Our portfolio includes bonds, CDs, money markets, and MYGAs.

I am 48 but no Bonds yet. ChatGPT says wait 5 years before retirement to go down the glide path.