Inflammatory statement: I calculate that you can retire in a year and 1/2, at age 43 1/2, without changing ANYTHING you're doing (don't have to cut expenses, earn more, anything). If your post is honest. ;)

Here were my stream of consciousness thoughts as I read your post.

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Random thoughts as I read though...

EDIT: Some stuff is slightly wrong because you addressed it later, but I'm going to leave it as-is, so you can see my thought process.

Thought 1:

You say you're 42, and your goal is (was) retire at 50 after 10 years (so I'm assuming this goal started two years ago, at age 40) with 500k in your portfolio.

To retire that young 50, with potentially 40+ years left, you'll want a SWR at about 3% (maybe a bit lower, to deal with potential for high inflation). That means 500k * .03 = 15,000/yr. Can you live on that?

I note that after two years at a 75k job you have 74k saved. That's about a 50% savings rate, meaning you spent 37.5/yr, double what your retirement expenses can safely be. You basically need to cut your expenses in half.

The math on retirement says that to retire in 10 years, earning, say, 6% on your money in those 10 years, and assuming a 3% SWR, you need to be saving a little over 70% of your money for the next 10 years. Now that you've done 50% for two years, to get to FI in 8 more years, you're likely looking at more like a 75%+ savings rate. That matches the math above about cutting expenses in half. Either way you slice it and do the math, you're spending about twice what you should be. That's a big jump.

EDIT: Read a little further and saw you also have cash, I had stopped at the 74k in bonds. So those percentages are slightly off, but not much, especially since you're certainly earning less than the 6% I assumed with almost 1/3 of your portfolio sitting in cash.

Thought 2:

Yikes, that asset allocation scares me. If one of those companies gets in trouble, that affects a HUGE portion of your portfolio. I'd strongly recommend index funds, with some bond funds. If you're a huge bond fan (and I don't mean 007), fine, do a higher percentage of bond funds. But the lack of diversity there leaves a lot of risk in your portfolio right now.

Thought 3:

Got to the part about your expenses. So maybe you can live on 15k/yr. You claim 12k-17k, yet have only saved 100k after making 81k/yr the past two years? Those numbers just don't add up, you should have more saved if those expenses are accurate. Often when people project expenses they remember the big things, and forget about the many small things that do add up (one time costs, but lots of different ones means there's constantly one off costs). Do you ever plan to move out of the parents'? That will increase those expenses.

Thought 4:

Well *, if all you need to do is get from 50 to 62, on 15k/yr, then (assuming 3% inflation and a 0% return on your money - i.e. leaving it all in cash), 500k is waaaay more than you need. A portfolio of $212,880.44 will give you 15k/yr (year 1) increasing 3%/yr (to 20,763.51 in year 12). If your SS and pension actually cover you after that, you should easily be able to retire before 50. Hell, using a time value of money calculator I see that at 6% the 100k you have now, withdrawing 15k/yr, will last you 9 years (from 42 to 51). Let's see then.... if you save 50k/year, as you've done the last two years (ignoring my above comments about cutting your spending, and leaving it the exact same, and saving 50k/yr), then in two years, when you're 44, you'll have approximately 203k. At 6%, withrawing 15k/yr, you'll be able to make it to 62 (18 years later) and STILL have 115k of that 203k left! You could retire in as early as a year and 1/2 from now! (saving 50k yr 1, 25k in the next half of the year, to a high portfolio amount of 178k, you end with a portfolio of 44k at age 62)...but I'm a bit skeptical of that 15k spending, as well as the SS and pension being able to cover you (mainly based on the spending, however). All of that 3% SWR above is intended to make your 500k last forever, and never run out. But if you just need to make it to 62, that's easier than pie!

Here's my bottom line takeaway: actually calculate what you need.

1) Find out your true expenses by tracking them. Based on your income and calculated expenses, you're leaking money somewhere, and you need to find and plug that.

2) Calculate what your SS and pension actually will cover. If 12 years is all you need a portfolio to cover, that's simple.

You have this number in your head, 500k, that you just pulled out of thin air, I feel like. Figure out what you actually need.

As far as your many investment options, KISS. Buy a mix of index and bond funds and forget about it.

As far as your many investment options, KISS. Buy a mix of index and bond funds and forget about it. You need more diversity in your portfolio.

Hope this helps, and if I was too harsh, I apologize, trying to help. :)