Hello,
Long time lurker, first time poster.
I am 42 my dear wife is 40. We have a 4 year old kid.
I plan to leave kid's education outside of this computation, we plan to have $300000 for their College by the time they need it, but we don't need to discuss it here.
I would love to retire in 2038, I will be 56, my wife 54. We want to have $80k/year (in today's dollars) until we die. (We kind of spend less than that right now)
I will only expect $5000 a month from social security (according to their calculators we should get more, but just in case $5000 is all i expect).
I expect to collect $3000 a month if i delay it to 70years of age. (start collecting in the year of 2052)
I expect my wife to collect $2000/month if she starts at the age of 64 (start collecting in the year of 2048)
Components of the plan:
- Portfolio of $1200000 consisting of 60/40 (stocks/bonds). We will take only 3%, which is $36000. We need to have this ready by 2038. (3% is conservative enough, 60/40 yields about 2.5% from dividends/income, we would only need to sell 0.5% annually to achieve 3%)
- First Tips ladder $44000/year from 2038-2048 would cost $366,439 according to https://www.tipsladder.com/build?income ... =BestYield
- Second Tips ladder $20000/year from 2049 - 2052 it would cost $50,464 according to https://www.tipsladder.com/build?income ... =BestYield
This is the rough plan.
1) Year 2038. Retire, both of us. No one has claimed social security yet, we are spending the First Tips ladder ($44000) + 3% SWR Of Portfolio ($36000) = $80000 until...
2) Year 2048 My wife claims SS (at the age of 64 and 4 months) ($24000). Replace First Tips ladder with Second Tips ladder. ($20000) + 3% SWR ($36000) + ($24000) = $80000 until...
3) Year 2052 I claim SS too. Live happily ever after on 3% SWR ($36000) + both of us SS ($60000).
The total cost of this scheme is $1200000 (stock/bond portfolio) + $366,439 (First ladder) + $50,464 (Second ladder) = $1616903. $1.6mm and change.
If we have this in 2038, we should be good to go.
Does this all sound reasonable, or am i missing something?
And should i already start building those Tips Ladders, TIPS are yielding good right now. My only problem is i don't have them offered in 401k, i would have to buy them in Taxable most likely.
Thanks in advance!
Long time lurker, first time poster.
I am 42 my dear wife is 40. We have a 4 year old kid.
I plan to leave kid's education outside of this computation, we plan to have $300000 for their College by the time they need it, but we don't need to discuss it here.
I would love to retire in 2038, I will be 56, my wife 54. We want to have $80k/year (in today's dollars) until we die. (We kind of spend less than that right now)
I will only expect $5000 a month from social security (according to their calculators we should get more, but just in case $5000 is all i expect).
I expect to collect $3000 a month if i delay it to 70years of age. (start collecting in the year of 2052)
I expect my wife to collect $2000/month if she starts at the age of 64 (start collecting in the year of 2048)
Components of the plan:
- Portfolio of $1200000 consisting of 60/40 (stocks/bonds). We will take only 3%, which is $36000. We need to have this ready by 2038. (3% is conservative enough, 60/40 yields about 2.5% from dividends/income, we would only need to sell 0.5% annually to achieve 3%)
- First Tips ladder $44000/year from 2038-2048 would cost $366,439 according to https://www.tipsladder.com/build?income ... =BestYield
- Second Tips ladder $20000/year from 2049 - 2052 it would cost $50,464 according to https://www.tipsladder.com/build?income ... =BestYield
This is the rough plan.
1) Year 2038. Retire, both of us. No one has claimed social security yet, we are spending the First Tips ladder ($44000) + 3% SWR Of Portfolio ($36000) = $80000 until...
2) Year 2048 My wife claims SS (at the age of 64 and 4 months) ($24000). Replace First Tips ladder with Second Tips ladder. ($20000) + 3% SWR ($36000) + ($24000) = $80000 until...
3) Year 2052 I claim SS too. Live happily ever after on 3% SWR ($36000) + both of us SS ($60000).
The total cost of this scheme is $1200000 (stock/bond portfolio) + $366,439 (First ladder) + $50,464 (Second ladder) = $1616903. $1.6mm and change.
If we have this in 2038, we should be good to go.
Does this all sound reasonable, or am i missing something?
And should i already start building those Tips Ladders, TIPS are yielding good right now. My only problem is i don't have them offered in 401k, i would have to buy them in Taxable most likely.
Thanks in advance!
Statistics: Posted by krme — Sun Aug 25, 2024 12:44 am — Replies 3 — Views 579