Author Topic: a Post FIRE investment question for the community  (Read 2380 times)

texxan1

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a Post FIRE investment question for the community
« on: March 07, 2017, 02:48:21 AM »
So im planning on FIRE jan of 2021....

I will have a pension that will be $328k lump sum at that point.

If I do the numbers in fidelity, and waited to take that pension at 60, but still leaving work at 50.. It shows that I would take a lump sum at 60 of 464k.... When I think of this, it seems to me that I would be better of to take the pension at 50, and throw it into a vanguard or something similar etc.

Am I seeing this right, that the best way to do this would be to take the pension and roll it into something else...

Just FYI... im calculating that I will have 1.1m in taxable accounts by then, as well as 800k in my 401k. and about 150k cash etc... So the thought is to roll the pension, into my 401... Live off the 1.1m taxable 4% or something along that lines.. Until I can take my 401

I have kind of a radical leap im taking towards FIRE later this year, but that will make my numbers even higher, but im waiting till jan 2021 because my medical retirement bennies don't become available until I turn 50

Thanks
Thanks
Thomas

BTDretire

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Re: a Post FIRE investment question for the community
« Reply #1 on: March 07, 2017, 05:53:51 AM »
My quick look says, if you leave your pension where it is, they will only pay you
2.7% per year over the next ten years. Not so good.
 I would move it.

Metric Mouse

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Re: a Post FIRE investment question for the community
« Reply #2 on: March 07, 2017, 06:23:42 AM »
My quick look says, if you leave your pension where it is, they will only pay you
2.7% per year over the next ten years. Not so good.
 I would move it.
And that's if the fund remains solvent.  Take it and run.

Dicey

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Re: a Post FIRE investment question for the community
« Reply #3 on: March 07, 2017, 07:24:06 AM »
My quick look says, if you leave your pension where it is, they will only pay you
2.7% per year over the next ten years. Not so good.
 I would move it.
And that's if the fund remains solvent.  Take it and run.
Take it and run straight to Vanguard.

aceyou

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Re: a Post FIRE investment question for the community
« Reply #4 on: March 10, 2017, 08:34:33 PM »
I'll pile on and give the same advice...move it all to vanguard.  Even if the market stood still for a decade, dividends alone would almost match the yield.

Bateaux

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Re: a Post FIRE investment question for the community
« Reply #5 on: March 10, 2017, 09:20:02 PM »
For starters, congratulations on a job well done.   I agree with previous answers.   Take it to Vanguard.   My lump sum pays 5% and is currently about 325K.  I'm retiring at 50 in 2019 current plan.  Maybe 2018 if I get itchy.  No medical insurance when I leave unfortunately.  Plan to move our 401ks which are over 1M to Vanguard as well for cheaper fees.  Taxable is in checking, regular  savings and Vanguard Index funds already.  Currently we have Schwab, Lincoln, USAA, Ameriprise,  Capitol One and local credit union accounts.   Going to put as much of that in Vanguard as possible when FIRE.

Monkey Uncle

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Re: a Post FIRE investment question for the community
« Reply #6 on: March 11, 2017, 07:28:01 AM »
I don't really have anything to add to the good advice that's already been given - just popping in to say I'm jealous!  If I were in your shoes, I definitely would not go back to work on Monday.