The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / FIRE Wannabees


Subject:  Re: 8 years till ER Date:  10/11/2004  3:59 PM
Author:  hjg0989 Number:  2657 of 5089

"From the information you provided in your post, you can plan to have an annual income of something like $32,000 from your portfolio, something like $20,000 from your pension, and I'll guess something like $15,000 from your Social Security retirement benefits. Your gross annual income will be in the neighborhood of $67,000. This money is mostly taxable, so you should plan to have a net annual income in the neighborhood of $36,000."

Yikes - that's a 54% tax bracket ...

"I would suggest that as you approach five to seven years from retirement, you SLOWLY adjust your portfolio allocation so that at retirement you have a 50/50 mix of stocks and bonds. Since you chose to invest with mutual funds, I would suggest that you could implement this asset allocation strategy by adding a bond index mutual fund that tracks the Lehman Brothers Composite Bond Index. Since you chose to invest with Vanguard, I would suggest you should chose Vanguard's Total Bond Index Fund (ticker symbol VBMFX)."

I'm counting the pension portion of my portfolio as m