nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
Like many potential ER'ers I have most of my money tied up in tax deferred retirement accounts that aren't easily accessible until 59.5. So my ER schedule is driven by not wanting to do a 72t and saving enough into accounts that I can get at without penalty before 59.5. Early next year I'm going to ER , but I wanted to see what you make of my AA and strategy for the years up to 59.5
I have $775k in retirement accounts that I don't want to touch until 59.5 and $230k in funds that I can access with no penalty.
I own a two family, have no debt or mortgage and get $1200/month in rent. My monthly expenses are $3k so I have to produce $1800/month from a combo of principal and gains from the following:
Cash
$20k
Taxable equities
$30k in Vanguard Total Stock Market
$30k in Vanguard International Stock market
457 funds (tax deferred and available with no penalty, but withdrawals taxed as income)
$30k stable value fund
$40k US equity index
$40k International equity index
$40k REIT
assuming 3% inflation, 2% return from the stable value fund and 5% from the equities and REIT things look good on my spreadsheet. I plan to spend from the cash account and whenever it gets down to $10k sweep gains and some principal from my taxable equities into my cash account. Once the taxable equities are down to $20k I'll do the same using the 457 equities. If there is a market down turn and I don't want to sell equities I'll use the stable value fund.
My emergency fall back position would be to move into the downstairs apartment I currently rent out for $1200/month and rent out the larger upstairs apartment I live in now for $1800/month, I could always use my ROTH which has $50k in it, 72t some funds and lastly there's always part time w*rk.
I have $775k in retirement accounts that I don't want to touch until 59.5 and $230k in funds that I can access with no penalty.
I own a two family, have no debt or mortgage and get $1200/month in rent. My monthly expenses are $3k so I have to produce $1800/month from a combo of principal and gains from the following:
Cash
$20k
Taxable equities
$30k in Vanguard Total Stock Market
$30k in Vanguard International Stock market
457 funds (tax deferred and available with no penalty, but withdrawals taxed as income)
$30k stable value fund
$40k US equity index
$40k International equity index
$40k REIT
assuming 3% inflation, 2% return from the stable value fund and 5% from the equities and REIT things look good on my spreadsheet. I plan to spend from the cash account and whenever it gets down to $10k sweep gains and some principal from my taxable equities into my cash account. Once the taxable equities are down to $20k I'll do the same using the 457 equities. If there is a market down turn and I don't want to sell equities I'll use the stable value fund.
My emergency fall back position would be to move into the downstairs apartment I currently rent out for $1200/month and rent out the larger upstairs apartment I live in now for $1800/month, I could always use my ROTH which has $50k in it, 72t some funds and lastly there's always part time w*rk.
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