Preparing for Retirement

[joel]

That is a big part of it. The fact is I hate it. I have hated it for the last three years, and I hate it more everyday. The job was summarily changed with new management three years ago, who has since been fired, but the damage is done. It is not the job I was hired to do, and the changes have all been for the worse. It is also full time or no time. There is no part time so you can work when you want and play when you want. My cross to bear.

I figure I am in for about another month, and pray we don't have any catastrophic illness that could bankrupt us. My health is still good, and I think I could find something else if we were desperate. I would like to take a few months and see what doing nothing is like.

I know just how you feel, I could not wait to retire.
I only go back when I have to for paper work or product.

 

[Supervisor42]

I know just how you feel, I could not wait to retire.
I only go back when I have to for paper work or product.

+1
My job destroyed my body and I pay dearly for that every day.
I pulled the plug at 62 and looking back in retrospect, there is NO WAY I could have made it to 65 with anything left of my body to use.

As far as retiring after it is too late and your body is too worn out to enjoy life, that is a terrible, irreversible mistake.
Our retired years are supposed to be the best years of our life that we worked decades to earn (our 'golden' years).
Wasting some of our best years by staying hooked to 'the plow', just because we can still pull it, is ridiculous.
I ran the numbers after I retired at 62... retiring 2 years earlier would have made ZERO difference financially.
That's 2 years of my life I will never get back... for any amount of money.
Don't be me.

"Planning" isn't just all about finances and finding the right 'fiduciary'. "Time'' is priceless.

 

[Morgan101]

"Planning" isn't just all about finances and finding the right 'fiduciary'.

Amen to that. I agree 1000%. If I had found my guy even five years sooner I would feel much better about retiring.

 

[Chaosdawn]

I read this whole thread and y'all gave me a lot to think about. Both inlaws and my parents retired with plans to do things only to have health issues make it basically impossible. DH grandfather retired in good health but quickly developed Alzheimer's and spent years in a home before he passed.

I'm just overwhelmed trying to figure it all out. We both have 401ks and I have an IRA as well. But running out of money is a huge concern for me and I feel like I'm running out of time.

 

[Morgan101]

I read this whole thread and y'all gave me a lot to think about. Both inlaws and my parents retired with plans to do things only to have health issues make it basically impossible. DH grandfather retired in good health but quickly developed Alzheimer's and spent years in a home before he passed.

I'm just overwhelmed trying to figure it all out. We both have 401ks and I have an IRA as well. But running out of money is a huge concern for me and I feel like I'm running out of time.

I think Supervisor 42 and I would both agree finding a fiduciary is extremely important if you haven't found one already. I chased my tail for more years than I care to admit getting bad advice from brokers who were making money for themselves, but not for me. I happen to be with Morgan Stanley now, and have been very pleased. I get double digit returns in good years and high single digit returns (8-9%) in bad years. I would add to what Supe 42 said that not only is time priceless it is critical. The longer the time you can invest the better off you will be.

If your company offers a 401K, max it out and have extra withheld. IMHO that is the best way to save. It is painless. You never see it. It is so much easier than making a trip to the bank to make a savings deposit. I would also recommend having your fiduciary review your 401K. They can see the choices that are available, and give you guidance on your selections. My guy did that, and it helped. My 401K through work has grown to be twice what I was hoping for. Good luck. It is an arduous and scary journey,

 

[joel]

+1
My job destroyed my body and I pay dearly for that every day.
I pulled the plug at 62 and looking back in retrospect, there is NO WAY I could have made it to 65 with anything left of my body to use.

"Planning" isn't just all about finances and finding the right 'fiduciary'."Time'' is priceless.

I would make $7,000.00 more in SS if I retired at 65, but I would spend $45,000.00, from my retirement to get there.
In the long run I might break even, if I lived long enough.

 

[The Lazy L]

That is a big part of it. The fact is I hate it. I have hated it for the last three years, and I hate it more everyday. ….

I was in a similar situation. I had a count down timer on my phone that indicated the earliest I could retire. And I had a bucket list of things that needed to done before. When the timer hit zero and the bucket list was finished every extra day was gravy. A year later enough was enough, I gave them 30 days notice. I’m sleeping soundly at night again like I use too a long time ago.

 

[Neb]

I was in a similar situation. I had a count down timer on my phone that indicated the earliest I could retire. And I had a bucket list of things that needed to done before. When the timer hit zero and the bucket list was finished every extra day was gravy. A year later enough was enough, I gave them 30 days notice. I’m sleeping soundly at night again like I use too a long time ago.

I had a count down timer I wrote to track the till retirement. I told them when I hired on I was shooting for 20 years. 18 years in I reminded them 2 more years. I worked just short of 21 years for them and used by left over vacation finish up at the end of 2019.

My boss was in denial until I emptied my cubicle. A week before my end date my boss said to " Ben, I need you to look at a spec for new project." I looked at my count down timer and asked "Do you really want me to get involved in a new project now?" He said...

No I guess not.

Ben

 

[joel]

For the first time in 24 months, My 401-K plan is lower, not higher than the month before.
Where is King Trump?

 

[Neb]

For the first time in 24 months, My 401-K plan is lower, not higher than the month before.
Where is King Trump?

Same here.

Ben

 

[Tirediron]

I don't want to burst any bubbles, but the economy and financial system is on life support, I bought tangible stuff that will either help me continue to function or that I can sell or barter in the future, but that is just me, and I may be somewhat off of my rocker.

 

[Neb]

I don't want to burst any bubbles, but the economy and financial system is on life support, I bought tangible stuff that will either help me continue to function or that I can sell or barter in the future, but that is just me, and I may be somewhat off of my rocker.

It is not necessarily a binary choice.

We have invested in stuff for when things go bad and if doesn't. We have to prep for both possibilities.

We did make something on wheat and are looking for other options.

I searched for who made money during the great depression. People spent what money they had left to escape their situation. I am thinking about breweries because people will be trying to escape reality.

Q
What breweries would you bet on?

Ben

 

[The Lazy L]

I don't want to burst any bubbles, but the economy and financial system is on life support…

I was just about ready to cash in my 401K and roll it into a IRA to lock in my paper profits. Then the China Flu panic kicked in. I had to waited until the stock market recovered.

IMHO investing is like playing poker. Quit while you’re ahead and before you lose all.

 

[angie_nrs]

I've heard that some people have cashed out of their IRA's for physical assets right now b/c they think the market is going to tank. They could be right. They could be wrong. Either way, I hope the tax hit didn't kick them too bad.

Of coarse none of that matters if you don't enjoy life during the ride to retirement. I've known people who hated their jobs and life but stuck with it just so that they could reach that magic retirement date only to get knocked down with health issues. It's heartbreaking to see that. There's no guarantees in life, so do the best you can with what you have. Delay some gratification, but make sure you schedule in some fun (within reason) while you are still young enough to enjoy it.

Starting early, avoiding debt, and living frugally has served us well.

 

[Supervisor42]

. I am thinking about breweries because people will be trying to escape reality.

Q
What breweries would you bet on?

Coors or Bud. Skip the yuppie stuff.
Being a beer drinker, I can tell you that I have never seen a guy that really wanted a beer, turn either of those down.

And those have been there for us come hell or high-water (we have each at times) and they are rock-solid.
*Disclaimer: I know nothing of their financial security, but they have always been there for me.

 

[DodgesMamMaw]

Retirement is great. We prepared for a long time. We both have hobbies. We travel in our RV when we want to. Hubs works odd jobs when he wants too.

 

[Tootsie]

It is not necessarily a binary choice.

We have invested in stuff for when things go bad and if doesn't. We have to prep for both possibilities.

We did make something on wheat and are looking for other options.

I searched for who made money during the great depression. People spent what money they had left to escape their situation. I am thinking about breweries because people will be trying to escape reality.

Q
What breweries would you bet on?

Ben

Breweries are a dime a dozen now around here. Cannabis is the new in thing….

 

[The Lazy L]

Retirement is horrible! You young folks just keep on working and paying for my Social Security check!

 

[Just Cliff]

Retirement.
I had so many plans for retirement. I was retired at 49, not by choice. I had most things squared away financially. House paid for. Farm paid for. All vehicles and equipment paid for in anticipation for retirement.
I was at work when I had my first heart attack. I was 49 years old. My job took it's toll on me. Two years later, another one. After the first, I had no energy. Everyone said It would come back, it never did.
Last year, the third heart attack and a bypass. No energy at all. All I want to do can sleep. I can sleep 20 hours a day with no problem. On paper, I am in great health. I'm glad I didn't invest in the equipment that I was going to for after retirement work. It would have just sat there and not been used.
It's been 6 years since my first heart attack.
I am 56 years old in a 90 year old body. 2 1/2 years ago, an issue with my neck came up. The stupidest injury imaginable. I raised my head 3 inches off the bed and POW! The pain was intense. Luckily I had some pain meds for when I broke my neck. Less than 3 minutes and I was one the floor in pain throwing up.
Last year, I went to bed that night and when I got up in the morning my left legs was close to useless. Not doctors could tell me why. The closest thing they came up with was something in my neck moved and shut it down. I now walk with a cane. I can hardly get to the back of the store to the meat department and then get back up front to check out without using one of those electric buggies.

Young folks.. Listen to me. Get prepared as much as you can as soon as you can financially.
Do the things that you want to do now. You never know if you will be able to do it later. Go where you want to go. See the things you want to see before you end up like me sitting in a chair looking out the window watching the world go by.

 

[Supervisor42]

Young folks.. Listen to me. Get prepared as much as you can as soon as you can financially.
Do the things that you want to do now. You never know if you will be able to do it later. Go where you want to go. See the things you want to see before you end up like me sitting in a chair looking out the window watching the world go by.

Priceless advice!

Breweries are a dime a dozen now around here. Cannabis is the new in thing….

Pot-stocks were the perfect 'get-rich-quick thing' that they yapped about nonstop a few years ago.
Even today, none of the 3 main companys stock is above $10.
Compare that to the lame Hershey stock that DW has.
It pays such a small dividend, I would never own it.
Today, it has a higher per-share price than any stock in my portfolio:

Lame.
Ever buy a Hershey bar? I don't think anybody in this country hasn't.
*Not investment advice...but similar to beer.

 

[UrbanHunter]

I only have 1 problem with the Cannabis approach, if it is legal everywhere, it is easy to grow and process. Once seeds become widely available no-one will be willing to pay for it...

I am a little like @Neb in that I have a plan, but the politics of work makes it hard for me to envision completing my plan. I am 2 years away from full retirement age and 4 years away from a full pension... I used to love my job, but things change and when the politics outweigh logic it becomes difficult to remain mentally vested. I have a mortgage and student loans (changing carriers after 30 can be expensive). If I am aggressive and slowly bleed some funds from my 401K I can have both of my major bills paid off in 2 years without taking a huge penalty. I continue to contribute into my 401K to the max and withdraw just enough to keep me below a step change in my taxes and I put this on the mortgage. This way I still get the matching from the employer and I get a little closer out the door.

If the situation at work improves I can have the house paid off and have a couple years of dipping out SSI and a full salary before retiring with a nest egg. Otherwise I get out debt free and just getting by.

 

[Mountain trapper]

Why? We live on a mountain farm and can live just fine on very little
we produce a lot of our own food
no utility bill except a very small electric bill ( negligable compared to what we paid in Florida)
no insurance except $650 a year car insurance
free internet
about $100 a month cell phone bill
( we do have one big expense, paying our son's college and gas to get there but we sold a property last year to do that)

Every place and operation is different. We have 3 vehicles that need to be licensed and insured, 5 trailers and a boat that need licensed. The house and all outbuildings are insured and the cattle are insured. Just the livestock feed alone comes to around $25,000 per year. We're 100% off grid with solar ($100,000 system). But we also have 5 generators that we use to keep this place going. We go through about $3,500 in diesel, more in gasoline and about 750 gallons of propane. We have miles of fencing that needs to be kept in repair. Each year I put in 300-700 fence posts @$7.00 - $20 each and miles of barb wire. Then there's seed, fertilizer and herbicides.
Our driveway is 2 miles long and each year I add 20+ dump truck loads of gravel at $350 per load. I lease a good chunk of land from the forest service with an annual fee. Almost every year one of our vehicles needs new tires, each vehicle has 2 sets of tires, winter and summer. Last week I put new tires on my Jeep at $1800. Last year my wifes Jeep, year before my truck and the boat trailer. We have 2 atvs, a side by side and a JD tractor. They'll be needing new tires soon too.
Then there's maintenance and repairs on all of this equipment. Seems like every week I'm changing oil in something. I keep 2 cabinets stocked with oil and filters for each piece of equipment.
We dont have internet here but we do have satellite TV and 2 cell phones at about $200 per month. Other than taxes, insurance and forest service user fees, these are our only fixed bills.
Oh yeah almost forgot, I'm making monthly payments on my medical bills too. Should have that paid off this year.
So for us to live this "simple" life in retirement is very expensive. Especially now with the Biden inflation.

 

[sonya123]

Every place and operation is different. We have 3 vehicles that need to be licensed and insured, 5 trailers and a boat that need licensed. The house and all outbuildings are insured and the cattle are insured. Just the livestock feed alone comes to around $25,000 per year. We're 100% off grid with solar ($100,000 system).

Do you mind if I ask what State you live in? As for $25000 in livestock feed, how much livestock do you have? We have about average 60 goats and sheep and spend about $3000 a year on hay and grain for them. But we make more than that back. Just sold 5 animals at the auction and made over $1000 ( 1 year olds)
Trailers don't need to be licensed here if you stick a farm use tag on it , we have some neighbors that have vehicles that only have farm use tags and I know they don't even have a license
Boat?! That's not really necessary is it?
We have solar also but ours cost about $1500 ( bought at home depot, and the batteries at a gold cart place) . Husband put it together. It doesn't run all of it, but if we put up another one like it , it would. I don't know why yours cost $100000???
I also think insurance is a rip off, so we don't pay any ( other than the required car insurance)
All choices you make . We also don't add gravel to our road, because it just washes away

Ultimately I think it depends on what you are willing to live without. We live without a lot of stuff and don't mind . If I could spend zero $ and be 100% self sufficient it would be great, but even us don't manage that

 

[Morgan101]

So for us to live this "simple" life in retirement is very expensive. Especially now with the Biden inflation.

Are you kidding me, Trapper? You aren't retired. You are self employed (LOL). I don't do that much work with a full time job. When do you get to the "simple" part.

 

[Supervisor42]

Retirement is horrible! You young folks just keep on working and paying for my Social Security check!

I think we're gonna be in good shape .
If they have been pouring their money in where all the "Smart-Money" is going (Big-Tech), their ship is taking on a lot of water:

That is just since January, -25%. Crypto, in the same boat.
A lot of 'fiduciarys' are gonna have some 'splainin to do.

 

[dademoss]

I think we're gonna be in good shape .
If they have been pouring their money in where all the "Smart-Money" is going (Big-Tech), their ship is taking on a lot of water:

View attachment 86119
That is just since January, -25%. Crypto, in the same boat.
A lot of 'fiduciarys' are gonna have some 'splainin to do.

I expect a lot of "brokers" are are in the same sinking ship.

I continue to place my free assets in food, brass, lead, potassium nitrate, sulfur and charcol.

 

[Supervisor42]

I expect a lot of "brokers" are are in the same sinking ship.

I continue to place my free assets in food, brass, lead, potassium nitrate, sulfur and charcol.

"brokers", I seen what ya' did there!
Unfortunately, yes.
I hear nonstop from them about how they could make me soooo much more money.
It's called "putting your money in high-risk investments" and I could easily do that myself.
...But I prefer to be able to sleep at night instead.

 

[dademoss]

"brokers", I seen what ya' did there!
Unfortunately, yes.
I hear nonstop from them about how they could make me soooo much more money.
It's called "putting your money in high-risk investments" and I could easily do that myself.
...But I prefer to be able to sleep at night instead.

Me too. been sleeping soundly for 7 years so far

 

[dademoss]

"brokers", I seen what ya' did there!
Unfortunately, yes.
I hear nonstop from them about how they could make me soooo much more money.
It's called "putting your money in high-risk investments" and I could easily do that myself.
...But I prefer to be able to sleep at night instead.

We will see what they say at the meeting on friday. Will the Mango hit the fan ?

I still get the emails, and linkedin messages, talk to me, we can make you millions (@1.25++percent of your assets)

 

[Caribou]

Before you retire, way before you retire, pay off all debt. Before I retired my home was paid. It was paid off way before I retired. This was good as when I was 58 my heart attack meant that I was no longer able to work the way I had been. I couldn't even carry my tool box.

Pay off your vehicle, better yet pay cash for your vehicles. Every dollar you pay in interest is a dollar that isn't available for something else. the first time my wife and I bought a car she was all pumped up and said, "I never thought I'd pay cash for a car." I responded, "Did you really think that you'd be driving that old Subaru for the rest of your life?" The smile disappeared, "Oh yea, I forgot who I'm married to."