P'Oed with things

[Supervisor42]

I have often said I am retiring at 62 1/2 even if I have to eat cat food. Lately 60 and discounted cat food looks like an option. I have told my co workers I eat a little every now and then to get used to the taste.
But seriously I asked a financial planner if I can buy back some federal time and pull the plug at 60 in less than 2 years.

There are so many "tricks" that people don't know about. Every retirement plan (401K's) allow you to make 'catchup' contributions. You can easily pull the 'finish-line' closer if you want.
Here's another one: after being retired, is it better for me to:
A. Have state income-tax withheld from our income every month...
Or.
B. Keep the 6-8% income it produces while invested, and write them a check at the end of the tax-year?

One of those leaves me 6% ahead, one does not. Did you guess it?
*Not tax advice. I don't know diddley about taxes.
Sorry I got off topic. My boss hates me.
Too bad he has no idea where in tha'heck I am now!.

 

[Bacpacker]

This is far more important than many people realize because monthly debt payments come from 'after-tax' income.
If you only have $10K left on your mortgage and are paying 6% interest on it, and the money you have in a 401K is earning you 4%, it is mathematically illogical to allow this to continue. Every year you lose 2%.
It is far better to have the 401K money pay off the mortgage and pump those mortgage payments into savings for the next few years.
When you retire with no mortgage payment, no car payment, and only a credit-card payment for last month's expenses, you will be surprised how comfortable you will be with much less income than when working.
*Disclaimer: This is not financial advice, but Super makes money off of people that cannot do simple math.

Being out of debt has worked very well for my parents. It's the first thing they mention when I talk to them about retirement. Freaks my mom out when she realizes how close I'm getting. LOL
But that is the game plan, workin hard to make that happen.

 

[LadyLocust]

Being out of debt has worked very well for my parents. It's the first thing they mention when I talk to them about retirement. Freaks my mom out when she realizes how close I'm getting. LOL
But that is the game plan, workin hard to make that happen.

Here too!

There are so many "tricks" that people don't know about. Every retirement plan (401K's) allow you to make 'catchup' contributions. You can easily pull the 'finish-line' closer if you want.
Here's another one: after being retired, is it better for me to:
A. Have state income-tax withheld from our income every month...
Or.
B. Keep the 6-8% income it produces while invested, and write them a check at the end of the tax-year?

One of those leaves me 6% ahead, one does not. Did you guess it?
*Not tax advice. I don't know diddley about taxes.
Sorry I got off topic. My boss hates me.
Too bad he has no idea where in tha'heck I am now!.

Yep! Why don't they teach this stuff in school (oh yea, that would screw up their plan).

Edited to add: @Guardian I was done with people before all this started. 2020 was just the candle on the cake for me.

 

[Bacpacker]

Taxes are another thing, when to pay them, when to delay them kinda thing as far as 401K goes. Roth vs regular

 

[winds-of-change]

We are debt free and though my earliest full retirement date is June 2022, I’m almost positive I’ll be done working by the end of this year, if not sooner.

 

[Supervisor42]

Taxes are another thing, when to pay them, when to delay them kinda thing as far as 401K goes. Roth vs regular

Yes. The big draw for 401K's / IRA's is you pay taxes on them when you are in a much lower income-tax bracket later.
This is true.
The hidden part is, the money you would have used to pay taxes on the funds, has been in there with them, the whole time, earning income for years.
Not only do you not have to pay taxes on them when you are in a 22% bracket, but instead when you are in a 10% bracket, there is also the income over the years that all that 22% tax-money generated .
You get to keep that, (-10% of course).
*Still not investment advice. More like Red-5 saying: "Look at the size of that thing!!!"

 

[UrbanHunter]

I think that there are many out there who have changed careers several times over their lives and each time they unknowingly reset the timeline clock.

I was 29 when I stopped working (no benefits and paid crap) and went to college with a family (I worked but just enough to feed us) but racked up student loans, started a new career, 15 years later I got an MBA at night (more student loans), 5 years later I started a career that had a retirement plan and benefits, but need 20 years to get the best benefits. I figure I have been working for over 50 years and am just able to see the finish line...a decade away.

I can't help but feel lucky to have it this good and to feel sorry for those people who will work their whole life at minimum wage jobs only to retire in section 8 rental housing and $800 a month...

I remember my mom talking about retiring, but she died 5 years before reaching her service date....

People who retire with a retirement plan (pension) and SSA before they reach full retirement age often get blind sided when Uncle Sam deducts their income (pension) from their SSA. Then many don't realize that it is taxable. You have to be careful if you take money out of your 401K to pay down bills as it is taxable and it can change your "income" at the end of the year. And while Uncle Sam is robbing you up front, the states like to sneak around and pick your pockets while you are on the floor.

Sorry, when you have been working since you were 10, you are near 60 and you realize that you need to work another decade, it kind of makes you bitter. I remember my parents and grand parents talking about retirement in the 1960s and they made it sound like by the time I was 55 I would have it made, laying out on the beach enjoying life and doing whatever I wanted, yep that was a wopper they were selling us back then.....

 

[Bacpacker]

Similar situation for me. The last 2 jobs I had both left the country after I had 10 years in. Luckily I was able to change fields, but use the same skills that would translate. If all goes according to plan, I'll have 17-18 years in now. Thankfully we do have a pension plan. That'll help.

 

[Cascadian]

My wife is on SSI and my retirement will be federal. I so hope uncle Sam can keep the wheels from falling off a while longer. However we are working towards being able to take care of ourselves.

 

[user 55]

I am not doing as bad as others for sure. Lately I am seeing some light at the end of the tunnel and it does not involve previous or current employers for the most part. I do have money set aside and I won't starve. The good thing as of late is I am starting to get work in a much more diversified manner. Not that I am getting rich but I am having success paying down the few remaining bills doing side work. After my issue with the fool in charge I work for, things seemed to start to come together. I am doing property maintenance and lite hauling and any other work I can get. I am thinking within 5 years or less I can make this full time barring a financial system collapse. In the past few days I have had requests to do various work. These small jobs are working around my main employment so it is helpful.
Maybe the negative in all of this bs from c19 to the current issue will prove beneficial in the future. Not to travel the faith road but the man upstairs does work in mysterious and sometimes humorous ways.

 

[Curmudgeon]

I look forward to the most is not having to be nice, polite, respectful, professional, courteous, to people who don't deserve it.

It is the cherry on top, lol. I was fired from 2 jobs over the years because I refused to be any of what you listed to a certain person.

The second one gave me much satisfaction. I got fired and walked out with a big grin on my face.

 

[dademoss]

It is the cherry on top, lol. I was fired from 2 jobs over the years because I refused to be any of what you listed to a certain person.

The second one gave me much satisfaction. I got fired and walked out with a big grin on my face.

I usually quit nanoseconds before they fired me

 

[Morgan101]

It is the cherry on top, lol. I was fired from 2 jobs over the years because I refused to be any of what you listed to a certain person.

The second one gave me much satisfaction. I got fired and walked out with a big grin on my face.

I hear ya!! I have been the rightest guy in the unemployment line more than once. I'm glad it worked out in your favor.

 

[UrbanHunter]

In 50 years I was unemployed for 2 weeks, usually I was able to find a new job and leave before being shown the door... In several cases I was able to realize that the company was about to go under and I was able to leave to a lower paying job before the paychecks started bouncing. I had friends who held on and lost vacation and pay that the company couldn't cover....

I learned at an early age that if you don't watch the little things they can come around to bite you... I also learned that no one really looks out for the little guy. You can either blame someone else for your current circumstances or you can roll up your sleeves and work the problem.

 

[Cascadian]

Someone gave me some great words of wisdom when I was young.
No one cares more about your stuff than you. If you don't care they don't care. So about 3 months before I was due for a raise I would go talk to the boss and state my case and my desire to get that raise on time. I was a hard worker and figured I could afford to shameless about it. I would often hear co-workers grumble that they had been eligible for thier raise for months and nothing. I would then ask if the boss even knew.

 

[hashbrown]

I was POed for months, I finally came to the conclusion the things I was upset about I had no control of. I decided to put my head down and bull forward and do my thing until someone try's to stop me from my goals for my family. I reckon at that point we will take a look at things with a little different attitude.