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URL:  https://boards.fool.com/i-am-planning-on-an-early-retirement-7-years-13357351.aspx

Subject:  Re: Early Retirement Asset Allocation Date:  9/23/2000  3:19 PM
Author:  rjm1 Number:  25018 of 92655

I am planning on an early retirement, 7 years from now at age 52, and I am trying to come up with a good asset
allocation for that time period. These funds are in my after tax savings, not to be confused with my 401k funds in my
retirement account. At age 59 1/2, I will begin drawing funds from my 401k. So my after tax funds are what I will be
living on during ages 52 - 59 1/2. I am also planning working part time to supplement my income during that period.
However, the point of this bit lenghty setup is to pose this question to the Fools out there.

I am planning an asset allocation along the lines of the following:

20 % Vanguard Growth Index fund
20 % Vanguard 500 Index fund
20 % Janus Mercury fund
20 % a Hi Yield Tax Exempt Bond fund (undetermined as of yet)
20 % Certificates of Deposit

7 years is not a long time frame so I want to be a bit conservative and a big agressive at the same time. I am willing to
take some risk, but want to be cautious also, hence the CDs and Bond fund.

I would be very interested in any opinions anyone may have at to the asset mix, other investment objective types to
include, and/or specific funds.

Thanks to all


The 40% in CD's and Bonds would be to high for me.

First start building the CD's and bond funds in another two or three years.

Even better plan on 5 years of living expenses in CD's/Bonds and start building that fund when you are 5 years away from retirement.

Might want to look at taking some money out of the retirement funds also. Look at you income tax picture to deceide. You can do it without the 10% penality.

Remember capital gains in a retirement account do not get capital gain tax rates so try and spend down the retirement fund and let the growth take place in the non tax deferred assets.
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