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Author: retirebyage40 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76106  
Subject: My retirement plan Date: 1/9/1998 11:44 AM
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I am going to outline my retirement plan below. I would like your feedback. Do you see any problems with it? Let me know.

I currently have $58,500 invested and add $725/mo. I have a goal of acheiving 16% overall return. In 4.5 years my house will be paid off, at that point that $800/mo. payment will also be added. In 8 years this will grow to $390,000. At this point I think I could retire and live off the interest indefinitly. We (my wife Laura and two children) currently live on about $25K/yr not counting house payment, taxes, and monthly savings. No, Laura doesn't work.

Currently 85% of the investments are in tax deferred IRA and 401K. I plan on paying the 10% early withdrawal penaly and taxes as I draw my living expenses from the IRA and 401K. (Although there may be a way around the 10% penalty.)

I would need to provide my own health insurance after quitting my job. I figure a major medical policy say with a $10K deductable will protect us from a major illness that would threaten to kill our net worth. We have low health care costs, so I don't see a large expense here.

Naturally, I will adjust my retirement date depending on how my actual returns pan out or if something unforeseen happens. If after retiring it doesn't work out or I get bored, I can always get a job again.
Any thoughts? Did I overlook anything?
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