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|Subject: Sanity check please||Date: 12/17/1999 2:57 PM|
|Author: jcmorgan1||Number: 959 of 19523|
Hello fellow fools,
I am 39 years old and would love to retire as soon as possible. I am assuming that my wife will continue to work for many years as she hates to be bored. My assumptions are based on her continued employment - mostly for medical insurance.
It seems to me as though I could retire in ten years if things go according to my plan. I presently have ~%170,000 in stocks and plan to contribute an additional $20,000 per year for the next ten years. I figure that will become $915,000 if I achieve a rate of return of 12%.
In addition to these stocks, I also have ~$130,000 in my 401k account. I will contribute $8000/year for the next ten years. At a rate of return of 12%, I estimate the value of this account at $1.75M upon my reaching 59 1/2 years of age. This should be plenty to see me through my retirement I think.
It seems to me that at age 49, if I have $915,000, I could invest this in some good bond fund (for instance. I realize this may not be the best thing to do, but just as an example) and reasonably expect an 8% yield. This would give me an income of $73,000 per year for the next ten years (at which point I can dip into my 401k). This seems sufficient for my living expenses. My 401k seems like plenty to last the rest of my life.
My questions are:
Am I missing something?
Does my plan seem feasible?
Any (constructive) advice would be most welcome. Thank you.
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