I've been pondering a significant shift in assets in preparation for ER in about 10 months. I would appreciate any comments. I'll be 52 when I leave the job, with 7 years before I can tap retirement funds. I have enough taxable money to carry me the distance without SEPP. I've examined cash flow over a 40 year period using Quicken Financial Planner based on a 6% return and 3.5% inflation, and that checks out OK. FIRECalc checks out OK too - although I used 35% stocks and 65% TIPS, which isn't quite what I plan to have, and I don't know how to work around the two-asset limit. So does anyone see any problems with this allocation going into the first year of ER? Thanks.
..................... The Three Major Asset Classes ..........................
7% - Cash
58% - Bonds
35% - Stocks
............................ Broken Down This Way .................................
CASH:
7% - Vanguard Prime MM Fund
BONDS:
13% - Vanguard Short Term Corp. Fund
11% - 6 - 10 YR TIPS
34% - 25-27 year TIPS - (I'm waiting for 2.5%)
STOCKS:
27% - Vanguard Total Stock Mkt. Fund
8% - Vanguard International Growth Fund
............................ Breakdown By Account Type .................................
TAXABLE ACCOUNT:
7% - Vanguard Prime MM Fund
13% - Vanguard Short Term Corp. Fund
(These two provide approx. 6 years of liquidity for withdrawals)
11% - 6 - 10 YR TIPS
12% - Vanguard Total Stock Mkt. Fund
RETIREMENT ACCOUNTS:
15% - Vanguard Total Stock Mkt. Fund
8% - Vanguard International Growth Fund
34% - 25-27 year TIPS (I'm waiting for 2.5%)
..................... The Three Major Asset Classes ..........................
7% - Cash
58% - Bonds
35% - Stocks
............................ Broken Down This Way .................................
CASH:
7% - Vanguard Prime MM Fund
BONDS:
13% - Vanguard Short Term Corp. Fund
11% - 6 - 10 YR TIPS
34% - 25-27 year TIPS - (I'm waiting for 2.5%)
STOCKS:
27% - Vanguard Total Stock Mkt. Fund
8% - Vanguard International Growth Fund
............................ Breakdown By Account Type .................................
TAXABLE ACCOUNT:
7% - Vanguard Prime MM Fund
13% - Vanguard Short Term Corp. Fund
(These two provide approx. 6 years of liquidity for withdrawals)
11% - 6 - 10 YR TIPS
12% - Vanguard Total Stock Mkt. Fund
RETIREMENT ACCOUNTS:
15% - Vanguard Total Stock Mkt. Fund
8% - Vanguard International Growth Fund
34% - 25-27 year TIPS (I'm waiting for 2.5%)