My Retirement Goals: Part one
I have been going through the process of deciding how to handle my financial goals now that I have retired.
I know I want to live an even higher income level than I had while working, I want to be able to pull out 225K per year, and be able to increase that amount in years to come. This means I must balance the amount of cash I need on hand to handle this against the increase in the total size of my estate that I need to cover future wants.
The more cash I keep on hand now, the less I have to invest. However, the more I invest, the bigger risk that I take that I might jeopardize my future retirement income, and end up behind a 7-11 counter!
At the start of the year, I thought that I would be happy with about 4 to 6 months cash on hand and the rest in Qualcomm. I found out, by going through the drop last month, that this was too risky for me. I wanted to have more cash on hand for comfort, and knew it was time to diversify.
I had basically doubled my portfolio each year in 1996 and 1997.I started out 1998 with about 508K and ran it up to 4.8 Million by January first. I pulled out 70K last summer, and 60K last month. Qualcomm tanked, and I sold roughly one half of what I had left in Qualcomm for 1.6 Million last week. As of today, I have a total of 13,080 shares of Qualcomm worth about 1.89 Million. That gives me a total of 3.49 Million to allocate.
First off, I need to pull about 225 K per year out to support my life style. (Hey, flying around the country to dance, and buying Zoot Suits, costs money!) After much reflection, I decided that I was comfortable with around 450k cash on hand to cover that.
Now how to set up my portfolios on the balance? That is what I am doing today. And when I am done this morning, I will post "Part Two"!
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