Hello Mustachian Community, and thank you in advance for your help and knowledge.
I am 45 years old and ready for retirement as soon as it is feasible, ideally within 5 years. I became concerned about the stability of my job over the last few years and with the market downturn I started thinking about many things and changing many things, just as so many people have.
Here is my current situation. Any advice is greatly appreciated.
-My current annual total expenses are $20,000. This includes everything: housing, utilities, fuel, clothing, food, etc. I am working very diligently to reduce this amount.
-I have no debts of any kind.
-I have no assets other than those listed below.
-I earn $65,000 gross a year.
-I have $173,000 in a 401k account. This account has no company matching, but is obviously pre-tax. I currently contribute $7,800 per year to the account. Currently weighted pretty heavy in bonds, but I'm not certain of the actual allocation.
-I have $72,000 in an ING savings account earning next to nothing.
-I have $9,500 dollars in an ING ShareBuilder Roth IRA account, full amount is held in SDY.
How I got here: I felt I was doing really well over the years. Contributed regularly to my 401k, eventually maxing out contributions for several years and just plugging along. I was spending all my other wages on lots of gifts, meals out, some travel, etc. Then the recession hit. My 401k took a 45% hit and for the first time in my life I felt poor and afraid. I had no cash savings at the time and felt very vulnerable. Since then my 401k is just recently back at the amount prior to the recession. I reduced my contribution amount and put the rest into savings, reduced expenses and put even more into savings. I have to say having that cash makes me feel a little more secure, but I know it is losing value sitting there.
How would you all recommend I move forward and why?
Max out the 401k again, then max out my Roth IRA each year, then invest in a taxable account? If so, what allocations and investments would you recommend? All with the ultimate goal being early retirement and being able to access the monies.
Thank you my Mustachians!