Easing into Retirement from a financial perspective

[Mountain trapper]

One of the critical things that I feel must be done prior to retirement is get out of debt, all debts. Although there are times when you can use the debt to your advantage. For example, when I bought my tractor, after I retired, I took advantage of the zero percentage rate. Then paid it off a couple years later. Same with vehicles. I've been buying only new vehicles since 1984 and all on special low finance rates. I always paid them off early. We own a large piece of property. Since we took advantage of the agriculture exemption our property taxes are very low. Our financial advisor keeps us in the zero income tax rate. She also has money set aside aside to start replacing our vehicles in 2026.
I retired from work at 57, I'm now 67. I started taking SS at 64. Last year my wife started receiving one pension from a former employer. At 65 she'll start SS and get another pension.
My plans for retirement started when I was still a teenager. I was never interested in college so I took a job where I could learn a skill that would be in demand everywhere. I bought my first home at 19. The rest, as they say, is history. My goals have never changed in all these years.

 

[elkhound]

I like your planning based on "time in" retirement, but the longer one works the shorter that times becomes. The average life expectancy is 85, to be conservative plan on living till 90. So if you retire at 55 you need to plan to cover 35 years in retirement, if you retire at 65 then 25 years would be a safe bet. If you keep working until 70, then you only need to cover 20 years.

From a money perspective the longer you work the more money you have in retirement. But from a health perspective, if you work longer you may not get to enjoy the fruits of your labors.

in my searching average male life expectancy is u.s. is from 74 to 76 years depending on year you look at.....never seen it above that.

women live longer average from my searching

 

[Amish Heart]

in my searching average male life expectancy is u.s. is from 74 to 76 years depending on year you look at.....never seen it above that.

women live longer average from my searching

Yes, we do, and I find that amazing, really. Except for my Uncle Melvin. He turned 101 on Jan 5th. But grandma's cousin Edna lived to 104. Got news a few days ago that the sister of my Uncle Glenn passed. Her name was Fern, and she turned 101 last October. She was a cool lady.
I do see many more lady widows in our area. There's even a few groups for them. They keep each other busy, and that's a good thing. My favorite cousin has been dragged to a few things, but she said it's not for her, her family keeps her busy. There's a few widowed amish men around that I know of that are in late 70's, early 80's, just dying to find another wife, a younger wife. I suspect it's more someone to clean up after them and cook for them, as that responsibility would go to the man's adult daughter if there is one, or a daughter in law. And wow, she'd be looking after two homes at that point.

 

[elkhound]

another thing is when one spouse is a spender while other is a saver and the saver dies first or early so spender starts spending like theres no tomorrow...ugghhhhh !! then spender is left with just his/her monthly income and they spent the nest egg.

 

[sonya123]

another thing is when one spouse is a spender while other is a saver and the saver dies first or early so spender starts spending like theres no tomorrow...ugghhhhh !! then spender is left with just his/her monthly income and they spent the nest egg.

lol that sounds like a personal problem ( of the spender)

 

[sonya123]

so what is the minimum ( current , not if we get Argentina style inflation) amount of monthly income you could live on in retirement? Approx? Just curious

 

[Mountain trapper]

so what is the minimum ( current , not if we get Argentina style inflation) amount of monthly income you could live on in retirement? Approx? Just curious

For us we could get by on about $8,000 per month. But some months we spend much more, like when we're buying equipment, hay, livestock, tires etc.

 

[Amish Heart]

Are you counting current reoccurring bills like heat(firewood), propane, electricity, insurances, house payments, medical bills, car pmts, taxes all that stuff... or SHTF bills where those would be different?

 

[zoomzoom]

For us we could get by on about $8,000 per month.

Are you counting current reoccurring bills like heat(firewood), propane, electricity, insurances, house payments, medical bills, car pmts, taxes all that stuff... or SHTF bills where those would be different?

I think that's about our number as well but I don't honestly know what the Mrs. spends. Since before we got married (over 30 years ago), we decided to keep our finances separate.

Yes, that amount includes taxes, utilities, insurance...

 

[Mountain trapper]

Are you counting current reoccurring bills like heat(firewood), propane, electricity, insurances, house payments, medical bills, car pmts, taxes all that stuff... or SHTF bills where those would be different?

For us those expenses are separate. We don't have house or car payments, and since I'm on Medicare we have very little medical expenses. The insurance, vehicle and equipment repairs and taxes come out of a different fund so it doesn't affect our monthly income. Much of our monthly income goes back in to savings, and when it grows enough we buy another CD.

 

[elkhound]

lol that sounds like a personal problem ( of the spender)

i couldnt be bound to a spend thrift daily...it just be to much conflict of lifestyles for either to be happy.

 

[UrbanHunter]

Our expenses run about $3,500/month now, I don't think it would change much in retirement.

 

[Mountain trapper]

Our expenses run about $3,500/month now, I don't think it would change much in retirement.

Exactly. That's what the "expert" retirement planners try to convince people with. When I was planning our retirement I had planned that our expenses would actually go up in retirement, and it has.