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Author: clifp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75402  
Subject: Re: Is my wife smarter than me? Date: 8/25/2006 8:03 PM
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I have gotten so much great advice..I am truly astounded @ just how smart the people in this forum are!

LaJollacowboiy



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...

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