[Banker1988]

Hi:

I am a new member for the savingadvice.com website and wanted to ask the experienced members about my future financial plans. First, some background details:

- I am 43 years old, single, no kids
- I own my own condo free and clear
- I have no debts excpet a $6K 0% car loan to be paid off in 1.5 years
- Current Annual Salary/Bonus: $110K
- Current Portfolio: $970K
- Portfolio Composition: 98% in CDs and Guaranteed Insurance Contracts,
and 2% in equities (As you can see, I am very conservative and
want to make sure my portfolio doesn't take a big stock market
hit)
- Current Investment Income of approximately $50K per year (all of which
is allowed to reinvest - I pay the taxes on this income from my
salary income)
- Current Additions to Savings: $45K per year (including 401-K match)
- I plan to work 3.5 more years, at which time my portfolio will be over
$1.3 million. I plan to be "Retired" at age 47 (although I may purse
other work of a less stressful nature)
- Projected 1st year in "Retirement": $65K+ in investment income,
$45K of expenses, $20K+ put into savings.
- Long term plan: Live off retirement income until age 65, at which time
I will: (A) Draw a $32K/year pension, (B) May draw social security
income if needed, and (C) Convert much of my portfolio to Single
Premium Indexed Annuities to lock in returns of approximately
8%+ per year of lifetime income (this is the rate I could get today
if I was 65).

I have tracked every dollar that has passed through my hands since
1994 using Quicken software, so I have very good information on my
expenses. I am frugal by nature, even more so given my impending
plans to quit my current job in 3.5 years.

I have put together spreadsheets to forecast out my future cash flows
which include: Paying for my own health insurance after "Retirement",
3% rate of inflation in my expenses each year, $5K of "unplanned"
expenses each year for unforseen events, etc. My spreadsheets tell
me that my future plans should be able to fully fund my living expenses
even with leaving work in 3.5 more years at age 47. But, this is a big
step to take.

Does anyone have any advice for me / see any holes in my plan?

Thanks in Advance,

Ken