Retirement Discussion

[Activated]

What a great attitude.

Same boat for me. What I wouldn't do to go to the canyon and fly around a bunch of chinese tourists. No stress, no worries, just fire up and give them a tour.

Tons to do once you retire.

I have a great job but I wish I was doing something I was more passionate about. It's a little late for me to change careers at this point but I want to retire to do a lot of the things I wish I had more time for now.

I really can't wait, my friends think I am crazy.

 

[GRADS]

Just make sure you enjoy your life today because you never know when it's your time. Work to live, not live to work.

Nailed it. Tomorrow doesn't always happen.

 

[Kahunajuice]

What's going to trigger it for you.
Age?
Tired of working?
Enough money in your retirement savings?
Money from a big windfall?
Social Security eligibility?
Medicare eligibility?
Become debt free?

There's probably more I didn't think of.
For me it's achieving enough money in my retirement and get to an age that Medicare will cover some health care costs.

I retired at age 58, and it was two of the factors which you have stated above.

1. Enough money
2. Debt free.

 

[shueman]

I'll never retire...I'll just give up.

x2 Tommie Boy ... I tried retirement, way too much stress ...

 

[SJP]

Not really sure. I will probably retire and go work for my boys. They still have some growing up to do. Really I am working to ensure they have opportunity, as well as my grand children, that aren't even a glimmer in their eye yet.

 

[Sleek-Jet]

What a great attitude.

Same boat for me. What I wouldn't do to go to the canyon and fly around a bunch of chinese tourists. No stress, no worries, just fire up and give them a tour.

Tons to do once you retire.

i would like nothing more than finding a sleepy little airport and working the line. That will all be gone by the time I retire though.

I had a good time in my 20's and 30's, didnt start having kids till later. I'll still have one in college when I turn 60, so the plan is to work till my late 60's, but I'll be in a position to hang it up after 65.

Men in my family live to their mid-80's, so that'd give me 20 years of playing I suppose. We dont have histories of cancer, but heart disease is floating around in the gene pool.

 

[boatpi]

I did pretty much what Alan (BoatCop) did, and that is some really dedicated saving and investing. I was not in the CG. We do both have pensions but do not think for a moment that you can really live good from that.
If you add it up one needs to save 15% from age 25-30 to age 55 to 60.

I retired at 53 from LE, it was time and I had done 32 years. But good sound stock investments, and a few pieces of income property that I acquired worked out well. I continue to work, sort of part time, but at a task that I enjoy, all 1099, so I do have many deductions.

The key to acquiring wealth is avoiding the IRS, so read about tax advantages and do it legally. I acquired a number of properties in Las Vegas when the market was in the dump (2011-2013). Another last year and up legging to one now. All are rented, some paid off, and all bringing in big $$.

Always save and invest, at 50 you can save $22,500 I believe in 401K type accounts, NO TAXES. Below that is is about 15K per year, all tax free.

Use some of that money later to divest and invest in income property, the deductions against the income are amazing.

If you have a good education and apply that towards a career, invest, do not always worry about having the biggest boat, or newest car, thrifty in some areas, yet still enjoy life, and always take care of your family. By 40 you should easliy have a net worth of 1 Mil, by 50 knocking on the door of 2 Mil. On from there.

This is if you have So Cal income, other areas because pay is less, adjust. BPI

 

[Ziggy]

If you have a good education and apply that towards a career, invest, do not always worry about having the biggest boat, or newest car, thrifty in some areas, yet still enjoy life, and always take care of your family.

That's where so many fail trying to impress others instead of thinking down the road.

 

[copterzach]

I don't think I will ever quit flying helicopters.

Another question. When your kids are out of college and out your checkbook, do you stay close to them? Or move off to Havasu and tell them to come visit you?

So many people retire and stay living in the same shitty place to be close to kids. I figure after all the dragging the kids around that I am going to do they can come visit me. Do a little traveling of their own.

 

[milkmoney]

I tried a couple years ago Made it 6 months then meet my wife and got married. The youngest is 14 and has 5 more years of school for sure. Once she is on her own and settled , I told my wife I am done.

Will no longer work and we will retire , guess I will retire within the next 5 years for sure one way or another.

Hope my mom reads this. Lol [emoji2]

 

[Stainless]

So how about you guys that have been settled into retirement awhile, how much is it costing a year to maintain your lifestyle. I'm asking about total including insurance, maintaining the lifestyle you enjoy, travel etc. I know there are a lot of fixed costs such as utility bills, property taxes etc. I'm just trying to see what the cost is per year to live a moderate lifestyle?

 

[PDQH2O]

Within 10-12 years of retiring, my advisor tells me I'll be in "fat city". My biggest concern is whether or not all that planning, saving and investing through the years will be enough.

More than a few friends who have done the same and are now retired. They never planned on some of the nonsense that the Government has thrown at them the past several years.

 

[Dettom]

So how about you guys that have been settled into retirement awhile, how much is it costing a year to maintain your lifestyle. I'm asking about total including insurance, maintaining the lifestyle you enjoy, travel etc. I know there are a lot of fixed costs such as utility bills, property taxes etc. I'm just trying to see what the cost is per year to live a moderate lifestyle?

I retired a little over two years ago. I got pretty depressed because I was prepared financially, but not mentally. I went from a high prestige job to being Joe Shit. I quickly became bored and found a great PT job back in LE. My insurance situation is fortunate because I'm on wife's insurance so I was able to opt out of mine. Good thing too, since that city went BK they left retirees with medical, holding the bag. We don't have any car payments or CC bills and with my retirement, my PT gig and her income, we do pretty good. Once the PT job ends, and it will at the end of 2015 fiscal year, i may want to stop working, move out to Havasu full time and get out of the California shit show altogether. I also have some money in deferred comp that I haven't touched. Figure you can still live decent on about 85% of your income if you don't have a bunch of unsecured debt hanging over your head.

 

[RodnJen]

To be honest I'm kind of scared to inquire. Pretty sure it's gonna be obscene.
Sure glad I married up like Grads. Not really. We married way before she was the bread winner that she is now.

I'm sure there is a benefits calculator on their website. You can plug in your age, years of service and salary to get a pretty good idea what it will be. You will have to decide if you want to take a reduced amount so that your wife can continue to receive a modified benefit in the event of your untimely death.

 

[TCHB]

After working for 38 years in the power industry I was getting bored with the same old thing. Business plans, meetings, cost reduction, new buzz words etc.

So far not bored at all.

I can not imagine going back to work and looking forward to a couple weeks vacation. We were traveling about three weeks last month alone and now back in Havasu to start our boating season and summer golf. There is nothing better than launching the boat on Sunday and thinking I do not have to get on the road to drive back to HB for work Monday morning.


Next month Rocky Point Mexico, Portland, Mesquite and Vegas.

 

[Joker]

I tried a couple years ago Made it 6 months then meet my wife and got married. The youngest is 14 and has 5 more years of school for sure. Once she is on her own and settled , I told my wife I am done.

Will no longer work and we will retire , guess I will retire within the next 5 years for sure one way or another.

Hope my mom reads this. Lol [emoji2]

She probably just spit out the blueberry pie.[emoji1]

 

[djunkie]

Just waiting for some people to die than I can retire. But they're pretty healthy still so it may be a while. [emoji23][emoji23] I'm kidding people.

 

[Hugh Jascaulk]

Getting sick and going thru kidney failure and going thru 1.5 years of dialysis gave me a whole new outlook on life. Thankfully I worked hard, invested well and married up, I was able to retire at 50.

With the best gift I could ever receive, a great friend donated a kidney to me last Dec., and gave me a new life. Feeling great, now the question is do I go back to work. No way, life is too short, I will enjoy every day to the fullest, and appreciate this gift of life I was given.

 

[Always Floored]

I am 42, i think its time to start saving.

 

[Quick99]

Hell I hardly work now. I am going to keep showing up at work until they shut my badge off. Currently putting 15% in company 401 K with a 6% match. Not in any rush to retire I like what I do and get plenty of time off. If God let's me I will work till I am 65.

 

[milkmoney]

She probably just spit out the blueberry pie.[emoji1]

It's huckleberry. [emoji2]

 

[shintoooo]

I have a retirement plan as well. Maxing out my 401k plus the 4% safe harbor and then also putting away after tax money every month. I want to retire by the age of 60 but not 100% as I enjoy doing what I do. If everything goes as planned my wife and I should be very comfortable when it's time to retire.

Our oldest is going to graduate high school next year and the other two will be done with high school and in college in 7-8 years from now so at the age of 45 we could be empty nesters although I will encourage my kids to live with us as long as they need to.

I also live for today and enjoy my life right now because there are certain things I can do right now that I will not be able to do when I'm older like drinking heavily amongst other things [emoji39]

This is a great thread. I like reading everyone's outlook on life and retirement.

 

[djunkie]

If all goes as planned I'll make almost as much retired as I do working. Well maybe not as much but our retirement is pretty damm good. If we still have that when I'm at retirement age that is. Plus I put quite a bit in my 401k. It's pretty healthy already.

 

[Joker]

From reading this thread, there are a few changes I would have made in my life, like working for a government agency. Working for yourself has its advantages while you're working, but the advantages diminish as you discuss this topic.

 

[BHC Vic]

From reading this thread, there are a few changes I would have made in my life, like working for a government agency. Working for yourself has its advantages while you're working, but the advantages diminish as you discuss this topic.

Union city job is what I'm looking at [emoji2]

 

[lebel409]

I retired 4 years ago, I hit 55 tomorrow.

I took a small check, partially because I was done, partially because my wife is younger and wants to work. I have an avocation in the garage that keeps me busy, and Boy Scouts, playing gigs, etc. No real down time, but way less stress.

 

[Wombat]

Guys, l notice a similar point coming through the responses and that is guys wanting to achieve 401k, what is the 401k.

 

[Stainless]

Guys, l notice a similar point coming through the responses and that is guys wanting to achieve 401k, what is the 401k.

401K is a term used in the U.S. for retirement savings plan typically offered by an employer and many provide differing percentages matching what the employee puts in. This money goes directly from your paycheck to your 401k, tax deferred. You can start taking distributions at age 59 1/2 and then pay tax on the distributions. The theory is you will be in a lower tax bracket thus paying less tax. That's kinda it in a nutshell.

 

[Wombat]

So how about you guys that have been settled into retirement awhile, how much is it costing a year to maintain your lifestyle. I'm asking about total including insurance, maintaining the lifestyle you enjoy, travel etc. I know there are a lot of fixed costs such as utility bills, property taxes etc. I'm just trying to see what the cost is per year to live a moderate lifestyle?

Simply, l have more coming in than going out If you set it up properly well before retiring, it is very easy to maintain and live a stress free life. This includes all the above normal living costs plus any extra ordinary costs such as in my case the purchase and freight for the Myco trailer on the way.

Basically l live a life style the same as l was working but with out the stress of employment, happy days

 

[Wombat]

401K is a term used in the U.S. for retirement savings plan typically offered by an employer and many provide differing percentages matching what the employee puts in. This money goes directly from your paycheck to your 401k, tax deferred. You can start taking distributions at age 59 1/2 and then pay tax on the distributions. The theory is you will be in a lower tax bracket thus paying less tax. That's kinda it in a nutshell.

Ok, sounds like ours which is called Superannuation scheme with no ceiling of the dollar contribution in the Super. Ours is active till the age of 65 but you can take it out at a 55 with no tax penalty's if you cease employment or in my case retire early leave it in make Max 25K yearly top ups till l'am 65. In fact there is no tax penalty's at all for Superannuation when activated, it even has a clause that if under 55 and lose employment a small amount of the accrued Super (10%) once a year can be accessed to help with living expenses.

Superannuation is not optional, if you work an employee has to pay into Super along with employer contributions of 9 to 12% added as well making this forced saving for want of a better word quiet good. It has been noted that young people starting today with Super will by the time they retire be worth over a million dollars.
Our Super has only been compulsory for both the employee and employer for the last 20 years :thumbup:

Another point l see coming up is medical costs for the people retiring, our Medicare system is heavily geared towards helping people from 50 plus. As the population gets older there is safety nets put in place through subsidized medical prescriptions, rebates for medical work, subsidized operating costs, pensions and so forth, in short there is alot of benefits payed in getting old

 

[Mr. C]

I've been doing the same thing for 31 years now(I'm 51). It's just not the same as creativity is gone and the only thing that matters is the metric numbers. Done t get me wrong I still do my job the best i can its just missing the compassion I used to have. It's now a job. I can go out at 55 with 35 years in (yes a union job ) but the percentage drop will probably keep me from doing it. And I haven't even looked into how the medical all works at that age. So if I'm out at 62 that's just the way it is. My biggest mistake was not listening when I was younger. You have to pay yourself first. Which by that my dad meant put some of every single paycheck away for when retirement time comes. Here I thought it meant go out and party and enjoy like there's no tomorrow. Well tomorrow is almost here and I kick myself for not listening or getting it sooner.

 

[530RL]

401K is a term used in the U.S. for retirement savings plan typically offered by an employer and many provide differing percentages matching what the employee puts in. This money goes directly from your paycheck to your 401k, tax deferred. You can start taking distributions at age 59 1/2 and then pay tax on the distributions. The theory is you will be in a lower tax bracket thus paying less tax. That's kinda it in a nutshell.

If your self employed, you can put close to 50,000 of pre-tax dollars into a retirement account and compound the savings until such time as you take it out for retirement.

Unfortunately, in America, if you hire an employee, you can no longer do that. Only in America.

 

[boatnam2]

Seemed so far away but its almost here! Turning 53 soon and retirement thoughts have become part of my daily thinking, wish i would of thought about it 30 years ago way more( tip for you younger guys) always planned on retirement at the river but not sure now, think i would get bored maybe do part time there and maybe part time at beach somewhere. Kinda late to be taking stabs at the market so i kinda know what i will have guesss it just comes down to how long i want to work, today about 58 sounds good lol.

 

[2Driver]

Unless you are doing your life's work, say what you will but its all about money.

 

[snafu]

So how about you guys that have been settled into retirement awhile, how much is it costing a year to maintain your lifestyle. I'm asking about total including insurance, maintaining the lifestyle you enjoy, travel etc. I know there are a lot of fixed costs such as utility bills, property taxes etc. I'm just trying to see what the cost is per year to live a moderate lifestyle?

This is where I like my Quicken.....

For 2014 all in every expense, living, vacation,entertainment, medical etc. was about $105 a day. If you break it down to just living....housing,taxes,food,medical,utilities around $58 a day. This is with absolutely no debt. 2015 should be similar although medical premium increase ( thanks to city bankruptcy)will add about $14 a day. Obamacare medical in 2016 will reduce that to $7 with higher copays. And this is for just me.

Retired in 2012 at age 50. Currently make about the same in retirement than if I stayed working even with the medical premium issue so retirement was the right choice for that career. Went back to working part time in 2013 (too much free time) and that income pretty much covers the living expenses so 90% of the pension is banked. I have the time and money to do the things I like. Ultimately would like to stop working altogether @55. Tap the 457 at age 60 and the Roth @ 70.

They say the nationwide avg couple in retirement is living a modest lifestyle at $47k a year. I believe this number is at age 65 with medicare in place.

That should give you an idea of cost.

 

[2Driver]

Cant believe how many folks forget to factor in income tax.

If you spend $100k a year then you need to have about $175K a year in income.

 

[Hugh Jascaulk]

The average person will spend 270k on just healthcare from the time they retire until death. Most think they will downsize during retirement, but that rarely happens. The scary part to think about is there has been a downturn in the market an average of every 7 years, hate thinking about 3-4 more downturns during my life.

 

[2Driver]

Bag on my plan but i did this:

I took what i spend yearly and added 25%
Then i added in $22k for healthcare
Then i doubled that figure.

That final number is what we need to make in conservative, principal retaining investmets to retire. We are 55 and my wife and I are retired.

 

[boatnam2]

Bag on my plan but i did this:

I took what i spend yearly and added 25%
Then i added in $22k for healthcare
Then i doubled that figure.

That final number is what we need to make in conservative, principal retaining investmets to retire. We are 55 and my wife and I are retired.

That plan sounds great and no doubt you have your ducks in a row, but what if you can achieve that? Is retirement not a option?

 

[2Driver]

That plan sounds great and no doubt you have your ducks in a row, but what if you can achieve that? Is retirement not a option?

Its all about the numbers - in and out and a cushion. My brother lives on 25% of what I do and is happy as a clam.

Plan,plan, plan You know all the 65 year old folks working check-out at Walmart, they arent there because they want to be.

 

[TCHB]

Cant believe how many folks forget to factor in income tax.

If you spend $100k a year then you need to have about $175K a year in income.

This is where you blend the income to keep taxes low.

Cash
Tax Free investments
Taxed accounts

When you blend it you can keep your taxable where you want it.

 

[BajaT]

Plan,plan, plan You know all the 65 year old folks working check-out at Walmart, they arent there because they want to be.

But they are always waiving and smiling!

 

[outboardrick]

I haven't read all the pages here but here's my response:
I've spent my life as an automotive technician, 30+years. I've been lucky enough to have been in a great area and a great product. I've made a pretty good living until I decided to semi retire to Havasu full time. All was going well until the economy crashed in 2009, I figured I needed to find something different and took a job with the Government. I don't like it much but it's a steady income and the bennies are good.
I'll retire as soon as I reach age, in 5 years, and take my chances. At least I'm debt free and live cheap, so Social Security and the savings I have should get me through.

 

[boatnam2]

Its all about the numbers - in and out and a cushion. My brother lives on 25% of what I do and is happy as a clam.

Plan,plan, plan You know all the 65 year old folks working check-out at Walmart, they arent there because they want to be.

I was thinking it was to pick up chicks lol, but yea your right poor planning or no planning at will sooner or later decide your fate.

 

[2Driver]

But they are always waiving and smiling!

Thats the fleishmans vodka smiling at you

 

[Stainless]

Obviously I still have a long ways to go before I retire, but I'm contributing to my 401k weekly & I have been putting money away in savings for a very long time. I'm debt free with no payments & don't over spend on toys that I can't afford, so I'll be fine. Honestly though, a weeks paid vacation gives me an idea of how retirement would be for me. The days are very long & boring when you have no set schedule & no one to spend them with. I would either need to find a new hobby or some part-time work, just to keep myself busy.

You will have a few million amassed by the time you retire. [emoji3]

 

[JDKRXW]

From reading this thread, there are a few changes I would have made in my life, like working for a government agency. Working for yourself has its advantages while you're working, but the advantages diminish as you discuss this topic.

X 10
...... until some of these gov't agencys (cities or states) go bk, because they are totally unsustainable. Even from some of the posts in this thread -- retiring at under 50 at 80% salary just seems mind boggling to me.
How can you make a great wage for 30 yrs., then retire and collect 80% for longer than you actually worked?
This just doesn't add up to me.

 

[TPC]

All our kids have IRA's and we fund them to the max.

 

[boatpi]

Many here have mentioned being debt free. In some cases that is not a good idea if you are below 50 and investing in real estate. Purchasing a rental house needs lots of ca$h, waiting until you save that amount of cash is not the way to go.

Money is very cheap to borrow, about 4.2% at this moment. With 20-25% down you can purchase a rental unit in some areas and have good cash slow. Basically the tenant buys the house for you. As rents increase you gain, and in my world I put it towards the loan principle. By 50-55 or so you own houses free and clear.

In the mean time you have all of the tax write offs against the rental income, interest, taxes, improvements, depreciation and so on. So at the end of any given year you may have a loss! Remember between age 45-55 you will be at the highest income earning time period in your life.

This loss, if any, can be taken AGAINST the personal income taxes that you owe from regular income(job) if you are an "active" property manager. This loss is common during the year of purchase do to rehab needed at the property. If not then you can take any losses on paper to "0". So you may take in 15K a year in rent, but do not pay ANY tax or very little. Even if you pay taxes against say 4K a year, you took in 15+K in rental income, or the tenant is "buying the house for you!" As many know I invest in Las Vegas.

I have had one eviction in 7 + years, and it went down in 9 days! Nevada is not CA, serve them and they are out in a week or so. Simple as that. See photos for two of my houses, use as an example.

Maybe every 3 years buy another property, so by 45-50 you own 3-7 houses. Some lenders will lend up to 10 houses now, all at 20-25% down with the proper 6 months in reserves. The increased value of the houses is all paper, later in life you can up leg to a larger property that brings in much more rent per month. I am doing one now, rent will be 3K per month.

I hope this helps a few. Investing in 401K's is good, but real estate is a better long term investment. As always, invest wisely. Think of this, at maybe 60, 5-7 houses, all paid for, gross cash flow is 10-14G per month....

These photos are used as an illistration of good rental housing that board members can own if you do your research and math. BPI

 

[Advantage 1]

Amongst the traditional 401k and IRAs, we have our investment properties here in Southern California. Our goal as of late is paying them off. A little bit longer to go.

We don't see hitting a number (monetary or age) then stopping. Whenever it feels right, I guess. I am 44, wife is 42.