GOJAGATORS
Dryer sheet wannabe
- Joined
- Oct 9, 2006
- Messages
- 16
What a great site. I've spent the last month searching a lot of old threads and found a tremendous amount of practical (as opposed to the usual 70-80% of pre-retirement income regardless of spending bologna) advice. Thanks for confirming my belief that its spending, not income, that determines retirement income needs.
Some background info first. I'm 50 and am a solo practicing Dentist. DW is about to celebrate her 21st anniversary of her 29th birthday and is ERed now. We got married(2nd time for both of us) and built our dream retirement house just over 2 years ago. DW's 2 sons are grown and on their own. I have a daughter in college and a son who is in his senior year of high school. College money is already saved in a seperate account. Our cars are paid for and we have no debt other than a 40K mortgage. We live very well on less than 50% of take home pay. I make about 230K/ yr. and we are very firmly in the 33% tax bracket.
Currently, we have 300K in our IRAs -80% stocks (mostly index funds and ETFs) and 20% fixed income. Outside the IRAs we have 50K in cash(emergency fund and money being saved toward a new car/major expenses), 70K in muni bonds and 40K in stocks in an investment club. No pensions or other tax deferred plans, since my staff at work unanimously preferes annual raises and fully paid health insurance to a retirement plan.
I love what I do, but I would like to do a little less of it by age 58/59 and would like to fund the possibility of quitting entirely by 62/63.
We are tracking our expenses now, to seperate out all the new home expenses from our actual living expenses.
So here is our preliminary plan. Fully fund IRAs yearly and:
2007(age 51) Child support ends (8 pmts to go, but who's counting??) and pay off the mortgage. We could argue the mortgage payoff versus investment options, but this is DWs #1 priority and I want her fully onboard the plan. Finish tracking actual living expenses and finish tweeking/ rethinking the rest of the plan.
2008(52) - 2014(58) buy enough(maturity value) zero muni bonds each year to meet about half the inflation adjusted retirement income we antipate needing for one of the years in 2020(64) through 2026(70). Based on current interest rates(yep- they'll change!!) this is about 1/3 of the after tax money we anticipate having available. Use the other 2/3, to buy stocks and/or muni bonds to maintain a roughly 75/25 stock/bond allocation including our Iras. Basically, my intention here is to have my personal version of an annuity stream available to meet lifes absolute expenses and to allow the market to provide the rest via dividends/ interest/ cap gains. It will also allow the tax defered money to grow until RMDs are required.
2015(59) - 2018/2019(62/63) Work enough to fund IRAs(possibly could do Roths then), provide health insurance and accumulate money for the dream vacation trips.
Well thats the basics of my plan for now. There are lots of little details also, but this has been a long post already. I've got plenty of time to play with the ideas and would appreciate any inputs you might have. Thanks again for a fabulous forum.
Some background info first. I'm 50 and am a solo practicing Dentist. DW is about to celebrate her 21st anniversary of her 29th birthday and is ERed now. We got married(2nd time for both of us) and built our dream retirement house just over 2 years ago. DW's 2 sons are grown and on their own. I have a daughter in college and a son who is in his senior year of high school. College money is already saved in a seperate account. Our cars are paid for and we have no debt other than a 40K mortgage. We live very well on less than 50% of take home pay. I make about 230K/ yr. and we are very firmly in the 33% tax bracket.
Currently, we have 300K in our IRAs -80% stocks (mostly index funds and ETFs) and 20% fixed income. Outside the IRAs we have 50K in cash(emergency fund and money being saved toward a new car/major expenses), 70K in muni bonds and 40K in stocks in an investment club. No pensions or other tax deferred plans, since my staff at work unanimously preferes annual raises and fully paid health insurance to a retirement plan.
I love what I do, but I would like to do a little less of it by age 58/59 and would like to fund the possibility of quitting entirely by 62/63.
We are tracking our expenses now, to seperate out all the new home expenses from our actual living expenses.
So here is our preliminary plan. Fully fund IRAs yearly and:
2007(age 51) Child support ends (8 pmts to go, but who's counting??) and pay off the mortgage. We could argue the mortgage payoff versus investment options, but this is DWs #1 priority and I want her fully onboard the plan. Finish tracking actual living expenses and finish tweeking/ rethinking the rest of the plan.
2008(52) - 2014(58) buy enough(maturity value) zero muni bonds each year to meet about half the inflation adjusted retirement income we antipate needing for one of the years in 2020(64) through 2026(70). Based on current interest rates(yep- they'll change!!) this is about 1/3 of the after tax money we anticipate having available. Use the other 2/3, to buy stocks and/or muni bonds to maintain a roughly 75/25 stock/bond allocation including our Iras. Basically, my intention here is to have my personal version of an annuity stream available to meet lifes absolute expenses and to allow the market to provide the rest via dividends/ interest/ cap gains. It will also allow the tax defered money to grow until RMDs are required.
2015(59) - 2018/2019(62/63) Work enough to fund IRAs(possibly could do Roths then), provide health insurance and accumulate money for the dream vacation trips.
Well thats the basics of my plan for now. There are lots of little details also, but this has been a long post already. I've got plenty of time to play with the ideas and would appreciate any inputs you might have. Thanks again for a fabulous forum.
