MacR -
Liked the header. Just got into this "retirement" phase about a year ago. Hasn't really sunk in yet. I think I'm still just on a longish extended vacation. Finally! Anyway, I'd like to ask some questions, as I've approached finding retirement a bit bassackwards to date.
Does the following make sense? I assumed we'll live to 100 (for actuarial purposes only), I'll be 58 this summer the wife will be 51, so that's 42+ years. There's just the wife and I, our kid has her own kids and mortgages so no significant support issues there anymore. Thanks to some prudent and some not so prudent investment management in the past we are debt free and have amassed a sizable total estate.
Assuming $100K per year as a "nice" estimate of annual budgets (gas, food, taxes, travel, insurance, entertainment, clothes, misc other expenses, etc) for the long term, we'll burn through $4.2 mill+ in that time (excluding any inflation adjustments for simplification).
What basic distribution should the total nest egg be spread amongst? Going really simple I am assuming initially several asset classes - real estate, investments, liquid assets (cash and credit lines), plus other assets. Anything else? Then within these classes how should these be broken up on a percentage basis?
I'm thinking we will spend more in the early retirement years, slow down spending in the middle phase, then perhaps due to weakening health reasons spend more towards the end.
My general goal is to not consume all of our estate such that we'll be able to pass some on to our heirs when all is said and done.
As an aside, in order to make all this happen, our health should be a priority. To that end, I've started concentrating on healthful activities to augment my web surfing affliction, those being, occasional golf, a good chunk of skiing with some backcounty climbing/skiing mixed in plus some cruising boat time, and a few other things I wanted to do more of back when I was a working stiff. |
