bfrank12
Dryer sheet wannabe
- Joined
- Apr 16, 2018
- Messages
- 16
Hello, I am 52 and planning for early retirement after 2019. There are so much information about it and it can be overwhelming to determine what to do. The plan for full retirement for my spouse is 2024. In have determine the income need for each year and estimated that it should be okay to retire.
We plan to use taxable account to meet income need for few year and then at spouse 67yr withdraw from 401k. Estimation included less than 3% withdrawal yearly and 75% Social security income at 70 years. Return for 401k are 4%. Perhaps I should use a lower return number. The questions that I have are the mechanics.
1)How to handle sequence of return risk before retiring and the first decade.
2) the bucket approach vs rebalancing. Kitces article said yearly rebalance may be better.
3) The value of cash in low bond and low equity market. I plan to us I-Series US treasury and US Bill and ladder these. Since the yield curve is flattening is this a better source on fixed income investment to avoid sequence return risk?
4) I am thinking about Roth conversion after 2024 from 401k to avoid tax for later year when RMD increase income for both spouses.
I have 2 children. One has graduated and another has 2 more years in college. I have been working 29 years since graduation from college. I am not sure that retiring early will create a stigma for me for "not working." Reading the website have been very helpful to understand the many issues of early retirement. Thanks.
We plan to use taxable account to meet income need for few year and then at spouse 67yr withdraw from 401k. Estimation included less than 3% withdrawal yearly and 75% Social security income at 70 years. Return for 401k are 4%. Perhaps I should use a lower return number. The questions that I have are the mechanics.
1)How to handle sequence of return risk before retiring and the first decade.
2) the bucket approach vs rebalancing. Kitces article said yearly rebalance may be better.
3) The value of cash in low bond and low equity market. I plan to us I-Series US treasury and US Bill and ladder these. Since the yield curve is flattening is this a better source on fixed income investment to avoid sequence return risk?
4) I am thinking about Roth conversion after 2024 from 401k to avoid tax for later year when RMD increase income for both spouses.
I have 2 children. One has graduated and another has 2 more years in college. I have been working 29 years since graduation from college. I am not sure that retiring early will create a stigma for me for "not working." Reading the website have been very helpful to understand the many issues of early retirement. Thanks.