Dr. Don: 30-Something Investor on Track to Retire at 55

I'm single, 38 and earn about $67,000 annually. From my salary, 7% is deducted monthly as my contribution to CalPERS, the California Public Employee Retirement System. This started when I took my new position in 1995, and it's my intention to remain in the public sector in California until retirement. If I retire at 55, I will receive a pension equivalent to about 40% of my highest salary. It's reasonable to assume that my salary may be in the high $70,000s to mid $80,000s by then.

Aside from the mandated CalPERS deduction, I also contribute $700 a month to my tax-sheltered 403(b) program. In addition, $600 a month goes to the (VTSMX Quote)Vanguard Total Stock Market Index fund, and $100 a month to an annuity. These areas currently total about $15,000 and $7,000 respectively. I also have about $6,500 invested in the (ANEFX Quote)New Economy fund in a taxable account.

I would appreciate advice on future options for my current $700-a-month tax-sheltered investment (it could increase to about $1,000 a month), plus future taxable investment strategies to reasonably achieve my goal. ...