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post #83 of Old 11-15-2012
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Re: My Escape Plan - Insights Wanted

Originally Posted by eric-the-red View Post
.....He is saying that taxable bonds (which I wouldn't have to pay taxes on due to low income I'll be earning) and they would get me close to 5% and additional stocks should get me a bit over, of course realizing there are risks to all of it.

Does that sound right?
Theoretically over the long term, but the market is declining right now. If any of your portfolio is in stocks, you will have to be able to spend down principal in the tough years. That makes it exponentially tougher to recover.

Glad to hear your advisor isn't suggesting anything exotic and promising high yields. That said, there just isn't a low risk way to get to 5% either, or every retired person would lock it in right now.

Enjoy the cruise. I just think you are going to have to realize you will spend down your non-401k liquidity and return when your low on funds. Many do it that way and it seems you will get several years of reasonable cruising out of it. Have a great time. You are at a good spot to do that. Unless you want to live the rest of your life without refrigeration, etc, I don't think the math on your significant savings will keep a 35-40 boat running for your statistical lifetime.

With some exceptions (Capt A being the most notable here), most cruisers eventually go home, some even sell the boat and move on after some number of years. Read these:


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