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I've just early retired, at 57, with a $270K IRA acct.To receive some income to supplement a fairly good monthly pension, I have started an early withdrawal plan, under the IRS's 72(t) SEPP plan, using the amortization method. The annual withdrawals are $15K, about a 5% drawdown rate. This seems to me to be a reasonable yearly reduction, which I should be able to offset with some of the portfolio invested in stable S-T income yielding investments like CD's (cur- rent rate = 6.9 for 6 and 12-months) and the remainder in a moderate domestic and overseas equity port.

Like a lot of other new retirees who have managed their own 401K's, IRA's and other investments for years, I feel that I can pick appropriate funds and stocks to generate the needed return. My concern boils down to 2 words - ASSET ALLOCATION! They say that your long-term returns are affected almost exclusively,at least up to 90%, not by what funds or stocks you pick, but by the particular allocation of the assets. Need growth? But some value also? Large or small? Both? How about some overseas core funds? Sectors for some casual market timing? Europe? (isnt it the "next" US market? Fgn bonds, to hedge the high-riding dollar?

Given enough time, paper, pencils and web sites, I can probably derive a safe portfolio, covering enough bases to ride out bad times in each area while doing okay in others. But, dont I really need a financial planner for this? It's not house money now, it's my living expenses for the next 20-25 years.

I'd like to hear from other folks who're in the same boat, or have been there maybe done that, or not. Also any suggestions for sites, boards, that specialize in Asset Allocation. I figure all I need is a 5% return on my equity positions and the 6 or 7% from the fixed to stay ahead of the withdrawals...what would you do with the $260K?


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