The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: fixie on July 12, 2019, 04:47:27 PM
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I just sort of realized that I could be DONEin 3 weeks!, but here is one tentative plan for mr. fixie, aged 45:
403b - 204900 - "aggressively" invested in 60% VIRSX, 15% VFTNX, 5% VBTLX
401a - 90500 - state managed more conservative investments.
457 - 27500 - 80% (88/12)2035 retirement strategy fund/20%(99/1) global equity index fund.
VTSAX - after tax - 27500
WA state pers 3 pension of ~$2500/mo @ age 65 or ~1200/mo @ 55.
Income ~$85k -$90k/yr
Bare bones yearly spend in HCOL area is 35k.
Currently saving ~$45k/yr mostly in 403b and 457 maxed.
Eventual SS ~$25k/yr conservatively at 65
Credit union - 10000(just while home sale is going on JIC)
Windfall from home sale- 8/1/19 - 470000
Q: Suggestions of what to do with the windfall if I don't buy some land and become a farmer are most welcome. Lump sum? DCA? Roth? What types of accounts and why? Max pre-tax and live off windfall? I want to be done with traditional work by age 50 or earlier.
How would you allocate knowing your savings horizon was 5 years or less away?
Thanks!
-fixie
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Q: Suggestions of what to do with the windfall if I don't buy some land and become a farmer are most welcome. Lump sum? DCA?
Unless you also plan to convert your existing investments to cash, then reinvest over time: lump sum.
Roth? What types of accounts and why? Max pre-tax and live off windfall? I want to be done with traditional work by age 50 or earlier.
You can't just put the whole windfall into a Roth account, so that's out. Using it to allow max pre-tax may be your best tactic. See Investment Order (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153) for generic suggestions.
How would you allocate knowing your savings horizon was 5 years or less away?
Some portion may be 5 years or less away, but it seems the lion's share should be invested with the long term in mind. See Asset allocation - Bogleheads (https://www.bogleheads.org/wiki/Asset_allocation) for some thoughts.