I’m 49, and considering retiring from full-time work in about year. I was originally planning to continue to work until I hit 1 million in net worth (and I still may do so). But I’m so burned out on corporate work these days that the idea of retiring sooner is very appealing.
My net worth is currently 745k, not counting the value of my co-op apartment, which would probably fetch 100k (after 5-7k worth of repainting, small bathroom tile repair, new carpet/floor refinishing, etc). I have no debt.
I haven’t decided yet whether I’ll retire earlier than planned, but I’d like to hear how best to prepare for the earlier retirement time frame in case I do. Any suggestions for how to better allocate and invest money, any income options to consider, any advice that I ought to start thinking about? My investment asset allocation is about 70% stocks (~90% domestic, 10% foreign), 25% bonds, and 5% cash. What asset allocation might I consider if I’m a year or so away from retirement? Throughout retirement?
My live-in BF isn’t ready to retire yet (net worth $250k, no debt), so it’d just be me for the next number of years.
Thanks much in advance.
Assets:
Roth IRA = $247,000
3 former 401ks (one rolled over into Vanguard IRA) = $253,695
Cash/Emergency Fund = $4,000
Checking Account: $5,400
Current 401K = $65,000
Stock Brokerage Account = $9,000
Extra cash slated to invest = $3,000
S&P500 Fund = $70,000
Pension from one employer (one lump sum, not yearly sum) = $22,700
Stock Holdings: $66,000
Small co-op apartment = @$100,000
Car = $1,200 (an oldie but goldie Honda Civic!)
Debt = $0 paid off my mortgage, no car payment, no credit card debt.
Budget:
Take Home Pay Per Month (minus maxing out my 401(k), health/dental deductions, and taxes): $3700
Current expenses per month (My BF splits the apartment-related expenses with me):
Co-op Building Maintenance - $540
Internet & Landline Phone - $85
Electric - $80
Cell Phone- pay-as-you-go plan works out to about $30
Car Gas/maintenance (car burns oil so I replace pretty often)- $95
Car insurance: $50
Co-op insurance: $11
Netflix: $9
Food - $250
Gym Membership - $30
Medical Expenses (Rxs) - $20
Roth IRA (for 2014 max out): $639
S&500 contribution: $1400
Money Market (to build up Emergency Fund a bit): $400
Total Payments per Month: $3,639