rheumdoc1977
Confused about dryer sheets
- Joined
- Apr 28, 2008
- Messages
- 8
Age: 35
Married.
Goal: retire by 65.
Income: 150k (me), 50K (DW)
I have put together the following basic plan. I am uninformed on financial matters and frankly not interested in learning about stock picking, optimizing my asset allocation etc. I am not necessarily concerned with if the following plan is best (ie most tax efficient, best "efficient frontier"), just that it is acceptable (ie will get the job done).
Here is the plan:
1. Save 20% of my gross salary automatically into two accounts: a 401K with Merrill Lynch (max contribution) and a taxable account with Vanguard.
2. The Vanguard money will be put into TR2040. The Merrill Lynch money will be put into 3 funds (10% PTRAX, 18% RERFX, and 72% MASRX) to approximate the TR2040 fund.
3. Retire in 30 years, will roll over everything into TR2040 fund, which should have a yield of about 4 % by then. We will live on this and my wife's COLA pension (which should replace her whole salary by then).
By my calculations, if I earn a 7% return of my money, in thirty years my nestegg will be more than 25 times my required investment income adjusted for inflation.
Married.
Goal: retire by 65.
Income: 150k (me), 50K (DW)
I have put together the following basic plan. I am uninformed on financial matters and frankly not interested in learning about stock picking, optimizing my asset allocation etc. I am not necessarily concerned with if the following plan is best (ie most tax efficient, best "efficient frontier"), just that it is acceptable (ie will get the job done).
Here is the plan:
1. Save 20% of my gross salary automatically into two accounts: a 401K with Merrill Lynch (max contribution) and a taxable account with Vanguard.
2. The Vanguard money will be put into TR2040. The Merrill Lynch money will be put into 3 funds (10% PTRAX, 18% RERFX, and 72% MASRX) to approximate the TR2040 fund.
3. Retire in 30 years, will roll over everything into TR2040 fund, which should have a yield of about 4 % by then. We will live on this and my wife's COLA pension (which should replace her whole salary by then).
By my calculations, if I earn a 7% return of my money, in thirty years my nestegg will be more than 25 times my required investment income adjusted for inflation.