No. of Recommendations: 0

I have gotten so much great advice..I am truly astounded @ just how smart the people in this forum are!


Well most of us have retired early.. It was NOT all luck :-) (ok in my case some of it was).

I plugged some number into Vanguard's annuity website, and given your ages a $5,000 monthly income with inflation protection and survivor benefits that started paying next Aug would required an investment of approximately $1.55 million in pre-tax money. Now the amount would be lower in 4-5 years but basically you can figured that a $700K lump sum would purchase a pension about 1/2 has generous as yours.

It is obvious that in the back of your mind you believe you can make great returns in the market. The good news is with a $10K+ pension you can afford to take lots of risks. Start your new investment hobby/career as soon as possible.

Skip bonds, index funds, and all those boring safe things.
Go invest in small cap value funds and stocks, see how you do in the next four or five years, if you make 15-20% CAGR well then you can think about taking part of your pension as a lump sum. Just don't get to cocky if we have a bull market for the next four or five years...

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.