The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retired Fools


Subject:  Sanity check please Date:  12/17/1999  2:57 PM
Author:  jcmorgan1 Number:  959 of 20632

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.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us