I'll start with a quick summary:
Age: 38, single, tall, handsome...oh nevermind
Goals and assumptions:
- Retire by: 50 (year 2025) with a possible part-time gig at Starbucks if needed. I figure at the 4% withdrawl rate I need a minimum of $1M, perhaps $1.5-2M. If my house is paid off I should be able to live off of 40-50k/yr.
- Put my kid through college (10 years to go). I figure I'd need $90k min?
- If possible, leave something behind for the loved ones (kid, gf)
Current status:
401k: $85k (Target Retirement Fund 2025)
IRA: $105k (currently cash)
Roth: $11k (currently cash)
Brokerage: $30k (12k cash, rest includes: AEP, BRK/B, KO, O, PAYX, PG)
Cash/savings: $20k (emergency fund)
House: $310k left on mortgage, about $100k equity.
Kid's college fund: $6k (VTI at Sharebuilder)
Current savings, going as far as I can stretch my savings:
$17k/yr into 401k
$300/mo into brokerage
$300/mo into college fund
$300/mo addl towards mortgage
The big question I'm trying to answer is how to invest the money above where it says "currently cash" including the future proceeds to them. Here's what I was thinking:
1. Equally divide the IRA+Roth money to buy these 10 dividend stocks (with div reinvestment): ABT, CVX, D, JNJ, MO, PEP, PG, PM, WMT, XOM
2. In my brokerage account buy VTI and VEU/VFWIX with div reinvestment?
3. Should I consider adding bonds or CDs or Munis? which ones?
4. What about the popular Wellengton and Wellesley funds? do I need them? why, where and how much?
I think I've provided as much info without reading like a boring book but if I missed anything please let me know. I'm looking for ideas and criticism on both my strategies as well as my assumptions. I realize that I may have to extend my working years to reach the ambitious goals...it is what it is.
Age: 38, single, tall, handsome...oh nevermind
Goals and assumptions:
- Retire by: 50 (year 2025) with a possible part-time gig at Starbucks if needed. I figure at the 4% withdrawl rate I need a minimum of $1M, perhaps $1.5-2M. If my house is paid off I should be able to live off of 40-50k/yr.
- Put my kid through college (10 years to go). I figure I'd need $90k min?
- If possible, leave something behind for the loved ones (kid, gf)
Current status:
401k: $85k (Target Retirement Fund 2025)
IRA: $105k (currently cash)
Roth: $11k (currently cash)
Brokerage: $30k (12k cash, rest includes: AEP, BRK/B, KO, O, PAYX, PG)
Cash/savings: $20k (emergency fund)
House: $310k left on mortgage, about $100k equity.
Kid's college fund: $6k (VTI at Sharebuilder)
Current savings, going as far as I can stretch my savings:
$17k/yr into 401k
$300/mo into brokerage
$300/mo into college fund
$300/mo addl towards mortgage
The big question I'm trying to answer is how to invest the money above where it says "currently cash" including the future proceeds to them. Here's what I was thinking:
1. Equally divide the IRA+Roth money to buy these 10 dividend stocks (with div reinvestment): ABT, CVX, D, JNJ, MO, PEP, PG, PM, WMT, XOM
2. In my brokerage account buy VTI and VEU/VFWIX with div reinvestment?
3. Should I consider adding bonds or CDs or Munis? which ones?
4. What about the popular Wellengton and Wellesley funds? do I need them? why, where and how much?
I think I've provided as much info without reading like a boring book but if I missed anything please let me know. I'm looking for ideas and criticism on both my strategies as well as my assumptions. I realize that I may have to extend my working years to reach the ambitious goals...it is what it is.