Mechanics of actual money after official "retirement" - Asset Allocation

[dinkhelpneeded]

Assumptions:

Age: 35, married 2 kids
Net worth (not including primary house): $700K
Total cost of living: 28K/yr (technically @ 4% withdrawal, this is possible)

I consider my 401k money, dead, because there's a long way from 34 to 60-62 when that money is actually available. How is it that people are so quick to say stach * @4% withdrawal will get you what you need. Allocation seems to be a BIG part of it, and I need to get that RIGHT.

Can someone walk me through the mechanics of how this 700K would be allocated, ideally? Assuming you are moderate-risk and reasonably diversified and dont want to erode your principal.

My apologies if this has been discussed before, please feel free to point me to the right threads.

[Frankies Girl]

First, 401K/IRA money is not locked out until 59.5.... there are many, many, many threads discussing this. SEPP/72t or Roth pipeline are two of the most common methods of accessing. Do a search on here for either of those terms and you should come up with dozens of threads.

http://www.madfientist.com/traditional-ira-vs-roth-ira/
^good source for the Roth pipeline method - and rest of his site is awesome too

Second, you need an investment policy statement:
http://www.bogleheads.org/wiki/Investment_policy_statement

Third, you need to get caught up (if you aren't already) on index investing. Once you figure out what your risk level is, the actual asset allocation (for a basic passive/index portfolio) is really quite easy - can be 2-3 funds over all of your accounts.

http://jlcollinsnh.com/stock-series/
^super place to start - and lots of great info here as well

http://www.bogleheads.org/wiki/Lazy_portfolios
^great example portfolios



And I'm confused on your name... I thought a DINK was "dual income, no kids" and you say you have 2?
:)

[dinkhelpneeded]

And I'm confused on your name... I thought a DINK was "dual income, no kids" and you say you have 2?
:)

I will eventually have them! Still DINK for now. :P

[trixs]

If you want to see how various allocations have performed you can play around at: http://www.portfoliovisualizer.com/