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Hello:
I'm 58yrs old,leaving the work force soon (2months).I have 150K that I'll have invest in order to
generate income.I'll not be able to tap my IRA and 401K
for another 14 months.I was thinking to invest the $
into......Vanguard asset allocation Fund,
Balance index fund or Vanguard Star Fund or divide the
money amongst them........I'll need 1500 a month.
Is it feasible to obtain........at 14months I'll
have to relocate my funds in the same fashion preserva
tion of capital and income.......Thank you for your
advice.argento4
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No. of Recommendations: 0
Hello:
I'm 58yrs old,leaving the work force soon (2months).I have 150K that I'll have invest in order to
generate income.I'll not be able to tap my IRA and 401K
for another 14 months.I was thinking to invest the $
into......Vanguard asset allocation Fund,
Balance index fund or Vanguard Star Fund or divide the
money amongst them........I'll need 1500 a month.
Is it feasible to obtain........at 14months I'll
have to relocate my funds in the same fashion preserva
tion of capital and income.......Thank you for your
advice.argento4


Keep several years living expense in CD's, money market or similar investment. Do not invest short term money in the market.
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I agree, especially not with Greenspan trying to beat the market with a club.
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Isn't it possible to withdraw funds from your IRA using the substantially equal paymenst provisions? As I understand it, you have to take such equal payments out for 5 years or until age 59.5, whichever comes first? I believe such equal payments are not penalized by IRS.
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Argento4:
I'll not be able to tap my IRA and 401K for another 14 months.I was thinking to invest the $ into ......Vanguard asset allocation Fund, Balance index fund or Vanguard Star Fund or divide the money amongst them........I'll need 1500 a month. Is it feasible to obtain........at 14months I'll have to relocate my funds in the same fashion preserva
tion of capital and income


As the other posters have pointed out, your current living expenses should never be invested in the stock market. Depending on how conservative you are, you should remove from the stock market enough money to cover 2 to 5 years' worth of expenses & put that into Bonds/CDs/Money mkt funds, etc. In your case ($1.5K/mo) that translates into between $36K to $90K which should not be in the market.

You don't mention the size of your 401k & IRA. Just be aware that "safe" withdrawal rates are in the 3-5% of your portfolio per year range.

Try reading up on early retirement at:
http://boards.fool.com/Messages.asp?id=1380025000872003&sort=id

Chris
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