RetirementColdHardTruth
Recycles dryer sheets
I am sure this has been discussed over and over. I am 40 yo now and have about 1.2 million in assets in the stock market with a AA utilizing Coffee House style. I am far ahead of where I need to be at my age, and even though I planned on retiring in a few years, I have now been promoted at my job and actually like going to work again. I currently sock away the max to my 401k's and save about 20k extra externally as well. I don't really need any gains anymore and am thinking of just cashing out. My current living expenses are around 38k including taxes. I have 2 years aside from that in cash and can continue to live the same lifestyle that I am happy with. I am seriously thinking that it is time to call the market quits and move to 100% cash and wait for CD's to start to return to the averages again at some point in the future. I plan on working another 10 or so years now given my current job that is very stable and easily transferable to another company in the event of a job loss. I work in high tech field as lead programmer so the ongoing demand is expected to be strong.
My thought is once you have won the game why continue any risk? I understand loss of principal due to inflation, but it looks on paper right now that I could retire with a 3.2% withdrawal rate. Given another 10 years in the industry I my projections will be a 2,144,050.46 ending balance given $45k additions and 3% growth. I know cashing out now will only give 1% growth if I am lucky. But eventually we have to return to the norm.
Thought and Comments?
My thought is once you have won the game why continue any risk? I understand loss of principal due to inflation, but it looks on paper right now that I could retire with a 3.2% withdrawal rate. Given another 10 years in the industry I my projections will be a 2,144,050.46 ending balance given $45k additions and 3% growth. I know cashing out now will only give 1% growth if I am lucky. But eventually we have to return to the norm.
Thought and Comments?