[USER]

Hello, portfolio balancing question.
I am 44 (single) – and if nothing major happens that can derail my plans – on track to FI in 6-7 years.

I am currently contributing 15% of gross income to my retirement and my company has been matching up to 8%. After reviewing my portfolio, I realized now that the money in my retirement account is more than 50% (54% to be exact) of my total investments.

I feel like I need to catch up on my bridge investment until I can access the retirement.

Should I scale back on the retirement contribution to just the amount matched by my employer now?

What is the healthy % proportion of brokerage vs retirement for someone entering FIRE in their 50s?

Note: I do not own real estate except my home that’s paid off.

It’s not part of my nest egg investment amount for FI because I plan to live in it as long as possible.

[Allen]

You only need 5 years of a bridge if you’re going to use Roth conversion ladder to access early without penalty.

Or 0 years if you plan to do SEPP withdrawals.

[Scott]

For a retirement date of 51. You need 8 years of living expenses in your bridge account.

To figure what that number should be by 51.

assume 8% a year compounded in your bridge value today for 6 years.

look at that number.

If it’s short, take that shortfall number and divide by 6 to figure out how much you need to be putting in it each year starting now.

[Author]

Posts