Thinking of of Pulling the ER Trigger......


Bill Gates

I have been thinking about this and am a bit nervous. I am starting to burn out and my job is becoming too stressful. I have been a lurker on this board for awhile and am thinking about ER. I wanted to run this by the ER experts on this forum and see what they thought.

Here is my sitiuation: I currently have about $49 Billion in equities in my Taxable Account. I also have about $3.8 Million in my 401K. My checking account has about $2K in it right now. I am currently debt free. Including my home - No Mortgage - currently worth about $67 Million.

I ran FIRECalc and it says my plan works, even though I won't start drawing my Social Security until another 12 years! Actually I can actually increase my current spending substantially and not endanger my portfolio.

My wife is now a stay at home raising our 2 children. She is also eligible for SS, as she put in her 40 credits before we were married. Currently my health care insurance is provided by my employer, but I will have to go it alone when I quit my job.

I know that I probably overweighted in equities and after reading Bernstein (which you guys recommend) I am thinking about a 60/40 stock/ bond split. That way if we have another Dot Com Bust, I won't end up eating Dog Food in my Older years. :-/

Please feel free to comment on my plan. - Thanks in advance :)


I think your plan might work - provided you watch your e-mails. Remember what happened last time? Unless you like spending your ER in court - we all have interesting hobbies.
Actually I think the biggest impediment to his ER is paying for tracking all of those emails that need to be forwarded to as many friends as possible.
As long as your $49 billion in stock is well diversified, you're fine. With a 60/40 split on that alone you should be able to withraw $1.96 billion each year safely over a 30-year span (based on historical comparisons). And if the year has high returns, go ahead and withdraw a couple hundred million extra for a special night out on the deserve it.

On the other hand, if you did something crazy like had only one stock holding making up 99% of your portfolio and you're the founder of the company your nest egg could fall drastically after your retirement and regular withdrawals. That's why you should diversify.

Oh, and move to Iowa. That $67 million home could probably be bought for $20k in Iowa, and you'd still have enough land to build the airport (if it's a good returns year) for your private jet.
Well, I can tell you EXACTLY how to work out your portfolio for the retirement of your dreams, and it'll only cost you 1% !
Let's not forget...

... that Melinda French's last accomplishment before leaving Microsoft was that helpful assistant "Bob".

And I'd sure hate to see a kid raised with the name "Longhorn"!

I'd recommend splitting that checking account up into 76 accounts of $50k. I'd hate to see your local bank go belly up and you to not have the $3.8mil federally insured. Maybe move some to another bank too, if this one goes belly up, it may take some time for the FDIC to reimburse you the money. Then you may have to tap into that taxable account at the wrong time.


...Oh, and move to Iowa. That $67 million home could probably be bought for $20k in Iowa, and you'd still have enough land to build the airport (if it's a good returns year)  for your private jet.

Sorry, there's no vacancy in Iowa. All filled up.
Top Bottom