Preparing for Retirement

[Pearl]

I'll never get to retire! Wonder if I'd make a good Pope??

 

[Weedygarden]

The Princess, her sister, and my sister, shop rummage sales yard sales and thrift stores. The SIL once quipped...

The most expensive thing I am wearing is my socks.

Also shop the curbs the night before trash pick-up. Most of our furniture is second hand or "finish yourself" book shelves.

Ben

Yes! I love thrifting, garage saling and alley and curb shopping. I find furniture and paint it, redo it, make it work.

 

[Mountain trapper]

SS was never meant to pay a living wage. It was designed to supplement your own savings and investment accounts. Personally I'd like to see SS phased out and let people choose their own retirement accounts.

 

[Neb]

Okay, I have 1 question: Has anyone got any clear guidance as to what you expect out of retirement and what you actually get after taxes and medical insurance?

I have been working since 1968 and still have between 3 and 5 years to go before I think I can afford to stop working, but it bothers me when I try to compare my bills with what my income should be, everything the establishment tells you is in pre-tax dollars....

I am not clear on what you are asking.

The Princess has us set up with "Every Dollar" from Dave Ramsey. If we on budget we are good. If we want something we have to save for it.

Ben

 

[joel]

If I wait till I am 67 for full retirement I will make $7000.00 more dollars, but I will have to spend $7000.00 from my 401K to reach that age of 67.
I will also lose $ 90,000.00 that I would have drew over that five years. So I will take SS asap.

 

[Supervisor42]

SS was never meant to pay a living wage. It was designed to supplement your own savings and investment accounts. Personally I'd like to see SS phased out and let people choose their own retirement accounts.

That was already done when they pushed people towards 401K's and IRA's that did not have pensions as an option.
Basically the govment admitting that SS ain't gonna be able to cut it no more.
SS is only enough to pay taxes today.

 

[dademoss]

After 50 years, finally my crap is better than the trash pickup crap, at least so far this year

 

[Neb]

If I wait till I am 67 for full retirement I will make $7000.00 more dollars, but I will have to spend $7000.00 from my 401K to reach that age of 67.
I will also lose $ 90,000.00 that I would have drew over that five years. So I will take SS asap.

There you go!

You have to
Know when to hold them
Know when to fold em
Know when to walk away
Know when to run.

Gandalf said "Run!"

Ben

 

[Amish Heart]

I found great things at the thrift store today. One was a new portable toilet. Great for our tornado preparedness. $10.00. Another was a professional xylophone and a drum pad, both Gibson with the stand and a rolling case. Like new. $15. Little granddaughter was ecstatic, she plays one in band class and now we have one at home.

 

[Neb]

After 50 years, finally my crap is better than the trash pickup crap, at least so far this year

Yup

Not more than 6 months ago we were looking at a set of chairs and asking....

Are these better than what we have now?

Ben

 

[Neb]

I found great things at the thrift store today. One was a new portable toilet. Great for our tornado preparedness. $10.00. Another was a professional xylophone and a drum pad, both Gibson with the stand and a rolling case. Like new. $15. Little granddaughter was ecstatic, she plays one in band class and now we have one at home.

Ca-ching!

Ben

 

[Mountain trapper]

That was already done when they pushed people towards 401K's and IRA's that did not have pensions as an option.
Basically the govment admitting that SS ain't gonna be able to cut it no more.
SS is only enough to pay taxes today.

Not true. You still have to pay in to SS whether you have a 401k or not. I'm saying make SS optional. Of course nobody in their right mind would choose SS over a 401k. SS is just a big ponzi scheme run by the government.

 

[Supervisor42]

I found great things at the thrift store today. One was a new portable toilet. Great for our tornado preparedness. $10.00.

I never thought that a portable toilet would save our butts one day, but it did.
Now back to what people should do years before they retire so they don't end up living in guvment housing and depending on food-stamps for food.

Not true. You still have to pay in to SS whether you have a 401k or not. I'm saying make SS optional. Of course nobody in their right mind would choose SS over a 401k. SS is just a big ponzi scheme run by the government.

SS has always been optional and people could opt-out of it. They just never let that knowledge become publicised.
Most teachers did not pay into SS years ago.

 

[angie_nrs]

One thing I would add is to DIVERSIFY!! For us, we wanted more than just what an account says we have. In addition to our 'retirement accounts', we have cash, savings accounts, property, PM's, collectibles, hard assets, etc. If the market goes completely bust (barring all the other issues that would cause), we'd still be OK financially b/c we don't have any payments and we wouldn't be a burden on anyone. We'd be PO'd (beyond belief), but we'd be OK.

I would recommend seeing a good estate planning lawyer in addition to a financial advisor when preparing for retirement. Estate planning is done based on the laws in your state. What we have done here in Colorado may not be exactly what someone in Mississippi would do (but probably pretty close).

That's good advice. We went the route we did based on what we know, what our trusted advisor (and others) have said, what my research uncovered, past experiences, and what our laws are. Those particlular situations are going to be different for everyone. Wanting to get informed and make those decisions take effort and time, which are necessary if a healthy retirement is the goal.

Get out of debt and stay out.

Live well below your means.

The Princess purchased the cheapest new car possible and drove her hand me down car until it died. Lather rinse repeat.

Get a financial advisor that is a fiduciary.

Only buy new appliances when you can't get replacement parts for a failing unit.

Ben

Your entire quote was gold Ben! Much of it you'd think would be common sense, but sadly that is not the case these days. My car is 10 years old and the car I had before this one was 13. I had to sell it b/c it was just......done. I don't put that many miles on my car and it's still in really good shape. I get maintenance done routinely and have been lucky not to have had major problems with my vehicles. I think my current car probably has another half decade or more to serve. I'm just fine with that. Taking care of what you have can save tons of money over time whether it's a car, home, equipment, etc.

Most people don't fix things anymore. Youtube is a great resource for discovering how to do that. We've used it several times for things we know absolutely nothing about. It feels really good to fix stuff and keep using it instead of throwing it away. Not only does it save money, it gives an opportunity to learn new things and also saves the landfills.

SS was never meant to pay a living wage. It was designed to supplement your own savings and investment accounts. Personally I'd like to see SS phased out and let people choose their own retirement accounts.

Agreed. The SS system has been raped by the politicians. At this point, I thought it would be bankrupt. When we started our retirement plan, we did our planning with the understanding that SS would not be there. So, anything we get from that will be icing on the cake.

 

[Pearl]

I have a portable toilet, maybe I CAN retire!?!?

 

[angie_nrs]

SS has always been optional and people could opt-out of it. They just never let that knowledge become publicised.

I'm not sure that's correct. I've never had that option anywhere I worked and my accountants and advisors have never mentioned that it is a possiblity for me. Although that second link does show some exemptions, most folks likely wouldn't qualify for those.
https://pocketsense.com/social-security-voluntary-mandatory-8539334.htmlhttps://turbotax.intuit.com/tax-tip...mpt-from-paying-social-security-tax/L3dLJUbLN

 

[Weedygarden]

Most teachers did not pay into SS years ago.

Truth! We were set up to pay into a state government employee retirement program in Colorado. SS was never taken out of our pay. I know that my relatives in South Dakota who are teachers and other government employees also had the same thing. They paid into a state government employee retirement program.

 

[joel]

My father had a deal Southern railroad that linked up with SS.
I did not get details, he did get a check.
I got pension, IRA, 401-K, & SS, also raw land & a few stocks.

 

[Supervisor42]

I'm not sure that's correct. I've never had that option anywhere I worked and my accountants and advisors have never mentioned that it is a possiblity for me. Although that second link does show some exemptions, most folks likely wouldn't qualify for those.
https://pocketsense.com/social-security-voluntary-mandatory-8539334.htmlhttps://turbotax.intuit.com/tax-tip...mpt-from-paying-social-security-tax/L3dLJUbLN

Your accountants and advisors would never recommend it because they know you have already paid ton$ into the system and would forfeit every dime if you bailed.
Young people just starting out however, can put their money into something worthwhile instead.
I think about the 1976 dollars I put into SS when $9.00 per hour was a middle-class wage.
Today I get the same dollars back, and $26.00 per hour is a middle-class wage.
How far do you think they go in 2022? Can you see why it sux yet?

 

[Bacpacker]

My father had a deal Southern railroad that linked up with SS.
I did not get details, he did get a check.
I got pension, IRA, 401-K, & SS, also raw land & a few stocks.

My papaw retired from Southern, said he made more retired than he did working. Railroad had their own retirement set up IIRC.

 

[Neb]

Not true. You still have to pay in to SS whether you have a 401k or not. I'm saying make SS optional. Of course nobody in their right mind would choose SS over a 401k. SS is just a big ponzi scheme run by the government.

SSI relied on many supporting few.

Too many Boomers.

Ben

 

[Amish Heart]

The amish can be exempt from SS if they want to, but then they don't get medicare benefits or hospice. I had a cousin die in November 2020. Her husband never paid into SS, so she never received it. She had a stroke and required alot of care the last 5 months of her life. She had lots of money in farmland, but her children did not want it sold because they wanted to inherit it (husband died 5 yrs prior), so they took turns caring for her and some did a better job than others. Couldn't use hospice.

 

[joel]

The amish can be exempt from SS if they want to, but then they don't get medicare benefits or hospice. I had a cousin die in November 2020. Her husband never paid into SS, so she never received it. She had a stroke and required alot of care the last 5 months of her life. She had lots of money in farmland, but her children did not want it sold because they wanted to inherit it (husband died 5 yrs prior), so they took turns caring for her and some did a better job than others. Couldn't use hospice.

I had a list of people who did not have to pay SS, but I missed placed it years ago & it could have changed.

 

[Amish Heart]

I'm sure there's other religious exemption groups. The amish also don't have to go beyond 8th grade. None of them here do. But for SS, some do and some don't.

 

[rice paddy daddy]

SS was never meant to pay a living wage. It was designed to supplement your own savings and investment accounts. Personally I'd like to see SS phased out and let people choose their own retirement accounts.

SS will never be "phased out".
The politicians are too used to getting that money.
SS payroll deductions do not go into a special account, like Al Gore used to say: The Social Security Lock Box.
SS payroll deductions go into the general fund, and are used for regular government business - like paying welfare, paying Biden's "covid stimulus" checks, etc.
Politicians will NEVER give up that Golden Goose.

 

[Supervisor42]

SSI relied on many supporting few.

Too many Boomers.

Ben

Yes. I guess the main take away for this thread topic is: Don't place SS as the foundation for your retirement. I am actually surprised it has lasted this long, which is why I started drawing it as soon as I could.
It's hard to keep from getting into 'investment advice' suggesting what people should be investing their money, hopes, and dreams into for retirement, but anything except the government will just have to do.

 

[rice paddy daddy]

I'll never get to retire! Wonder if I'd make a good Pope??

My conundrum exactly.
I'm 73, and drive a small delivery truck for O'Rielly Auto Parts, delivering to commercial customers.
What am I going to do when I get too old to work? That is a real concern for me.
I'm going to see about applying for VA disability for my hearing. I thought about applying for my PTSD too - the VA treated me for it for nine years. But my wife is hesitant, too many Democrat politicians make noise every few years about denying gun rights to veterans who are on disability for PTSD.
I'm going to have to think about that for a while.......................................

 

[joel]

My conundrum exactly.
I'm 73, and drive a small delivery truck for O'Rielly Auto Parts, delivering to commercial customers.
What am I going to do when I get too old to work? That is a real concern for me.
I'm going to see about applying for VA disability for my hearing. I thought about applying for my PTSD too - the VA treated me for it for nine years. But my wife is hesitant, too many Democrat politicians make noise every few years about denying gun rights to veterans who are on disability for PTSD.
I'm going to have to think about that for a while.......................................

I say get the benefit & put guns in wife name or sons name.

 

[SheepDog]

There is a federal law that states SS must be paid before anything else. In spite of SS paying a big part of the interest on our national debt we have always (ALWAYS) collected more SS taxes than were paid to recipients.

 

[Supervisor42]

There is a federal law that states SS must be paid before anything else. In spite of SS paying a big part of the interest on our national debt we have always (ALWAYS) collected more SS taxes than were paid to recipients.

Yes.
Right along side with the law that says the government must have a balanced budget and there will never be anything called "the national debt".
Take the glasses off and you will see a pile of maxed out credit cards and some guy trying to figure out how to divide up 'minimum payments' .