you may find interesting.

be aware that if you retire more than three years before your normal retirement age (mine is 66 years and 2 months) that the amount you will be penalized per month is greater for those months before that three year period. I lived off of savings, my 401K and cashing in my company stocks before claiming Social Security benefits.

I even used a zero interest credit card loan (fee was only 3%) to get enough money to live off of in 2017, so that my first distribution from the 401K wouldn't be taxed in a year that I still had some wage income from my job. The at way, I was able to get an Earned Income Credit for that year, even though I have no dependent children. Then, in January of 2018, I took out enough to pay that loan, and pay for my bills throughout 2018, and kept the distribution in the two lowest tax brackets, also taking advantage of the higher standard deduction for that tax year.

I used to be a tax accountant in the 1980's, and I know enough to be able to play the game within the rules.

All the best to you in retirement, it's like hitting yourself in the head with a hammer every day for forty years, and when you stop, you feel so much better!

About a week away from retiring.
Defined benefit plus 401K and personal savings. Wife is already retired with her own income.
Age is important, mostly because of Medicare.
Is your house paid off? Other major debts?
Look at your spending/checkbook/bank statements for the last two years. How much are you spending now?
Remember, you don't have to contribute anymore to your 401K. And your income taxes will probably go down too.

An amount set aside for that that guarantees a monthly income ok, but keep the rest free to be able to have flexibility as things arise.

It's not a fixed amount but it's generally within a pretty narrow range.

helpfully,
Bright

...which allows anyone to use their website at no cost, including a Retirement Planning model. It lets you plug in any savings and investments accounts, and then asks you to add your income elements (pension, SS, continuing work) and estimated expenses (health care, travel, home expenses, etc.) and models the likelihood that your assets will be enough.


www.personalcapital.com

He liked his job and it was a good social support network for him. He retired at 60 because he could, but then had nothing to do. As a result, he fell off the wagon for a bit, then finally got his act together.

The sudden lack of structure hits a lot of new retirees. My suggestion is to create another "job" to occupy your time. It could be anything from a personal project to a travel plan to volunteering or part time work somewhere.

Told me about all the photography and other things he was going to do then just sat around the house for years and got depressed. He tried part time work but he was spoiled by his job that gave him great benefits, time off and breaks. We were living in a area in mountains where all the guys thought taking a break was being a wuss.

So 2 1/2 yrs ago I got him a golden retriever. He has changed his life, he walks him twice a day for miles, takes him to dog park, is being social now with other dog lovers.

Should have done it years ago.

So yes, make sure you have a plan to be busy.

In my area there is a university with Olli classes for over 50, I take classes, dance, hike, etc.

While I still do a little freelance stuff, I mostly retired a year and a half ago. After 50+ years of regularly showing up someplace, it is quite the shock to ones normal routine. I'm slowly learning what works for me and getting back on track.

I'd offer that figuring that part out is as important as the financial aspect.

Try living on what you and your wife will have for certain from your defined benefit plans and social security. Estimate if you don't know for sure. If you don't already do this, keep track of all the expenses that are a given every month for the next two years, things like Medicare, Medicare supplemental plan, rent or mortgage if you have that, average your utility bills. Be frugal in the next two years and see how it feels to live on that.

I retired a year and a half ago and was already a rather frugal person, and it was still a bit of a shock. I keep track of all my expenses and it truly is helpful when you're on a fixed income.

There is absolutely no way you can know how long you or your wife will live or how healthy you'll be. Those two things truly are a crap shoot.

I never want my children to have to take me in. They both would probably do it in a heartbeat as I have a good relationship with both of them, but I just don't want them to have to do that and quite frankly, I don't want to have to do that either.

...and the best advice I got was owe no money...at all. No mortgage, car, credit cards, nothing, no excuses. I did what I needed to do to achieve that goal. I went into retirement with only food, utilities and other living expenses. I've never been a budget guy but one of the most shocking rationalizations was how much I had spent 'working'. Lunches, coffee a couple of times a day, the cleaners, fuel, clothing, I never considered that stuff. All of a sudden I was spending a thousand less per month!

I am not wealthy, I Have SS and my savings and that's it, I'm comfortable and a debt free existence gives me peace of mind. Jump in, the water is warm and deep and you will be amazed at how fast you become spoiled. I haven't been in a grocery store since Oct. 2012, food delivery! Thank you Amazon Fresh lol.

Fear not, use common sense, control monthly expenses and stay away from demon debt.

Last edited Thu Jul 18, 2019, 09:27 AM - Edit history (1)

Fruit trees

Berry bushes

Grape arbor.

If I work it right - I can eat something out of my back yard all year round.

I may not have 2 pennies to rub together when I retire, but I won't be hungry!

Before I retired, I made sure I had no mortgage, no car payment and zero credit card debt. Heck, I never used credit cards anyway unless I could pay off the balance the next month. Not working I find I never have to go to department stores for anything. Don't need any clothes because I rarely have to get dressed up so I live in jeans and long sleeved t-shirts in winter and shorts and t-shirt in summer. Don't need any more stuff in my life either. Car expenses are a whole lot less because most of the time my car trips are less than ten miles. My car is five years old with 35,000 miles on it. I bought a compact car before I retired. Gas runs less than $30 a month. Rarely do I eat out. I'd much rather cook my own food so I know what's in it.

I myself am even thinking about selling my house, socking the money away in income-producing funds and downsizing to an apartment, therefore saving even more money on home upkeep and untilities.

She moved from her house but did not sell it and moved into a small apartment. She rents her house out and it gives her a steady income stream. This works for her because she doesn't have enough equity in her house to make it worth selling. Of course, she still has to do all the repairs when they arise and pay the taxes and insurance, but it's in a very desirable area where she has no problem getting renters.

When she first told me about doing this, she was really skeptical and scared, but she had not been financially savvy most of her life, so she was forced to make a decision. Now she is settled into her apartment and has much smaller monthly bills and so much less to take care of. She said she would have done it sooner if she knew how liberating getting rid of all her stuff was.

I thought I would be retired by now, but I love my job too much. I'm a failed retiree. Every time I think I should take it easier, another project comes up that sucks up my attention. I don't need to keep working, but it's something that gives me joy. Do you still like your job? Working longer and delaying collecting Social Security means bigger monthly payments from them later, so there's one reason to delay. But if you're sick or hate your job, then retirement makes sense.

It's important to know what you're going to do after you leave your job. Do you have hobbies? Passions? A hunger for more knowledge? Going back to school would be a great thing to do. Or learning to play a musical instrument or learn a new language. I know a lot of retirees who've formed bands -- some of them actually get paid gigs. Some really get into art for the first time and learn to paint. The important thing is to do SOMETHING, because the golf course gets old after a while.

Sometimes life don't always work out the way you plan it. I bought a shit ton of yarn for my knitting hobby, for when retired. Well, I did retire and did knit nonstop - for about 5 years. At that point, I developed CMC arthiritis, and I can no longer knit without pain. My thumbs even hurt when I don't move them. So I don't knit anymore.

Your SS benefits will be greater - and if you have an IRA or Annuity, they will grow even if you don't contribute to them.

If you still have a mortgage or outstanding home equity loan - pay them off before you *think* about cutting the cord.

If you can work part-time after "retirement" - do so.

.. conventional wisdom said a person needed
half a million to offset eventualities.

So I came to Austin and worked part-time off
and on till I reached 65 and thought I had
enough money, which included my monthly
pension.

Nowadays I think it would be closer to two
million or more with the healthcare and
real estate systems as broken as they are.

Talk me down if you feel like it.

worked long and difficult hours for 30 plus year looking forward to the security of a guaranteed retirement from the companies to which that had been so loyal.

Whatever happened to that America? It seems lost forever.

globalization, wallyworld, amazon, and our gutless representatives that really only care about themselves and what they can rake off we the people. hahahahahaha, you said "security". there isn't any.

If you can't take a state senator or congress person out to lunch, they aren't going to hear your chirping.

Welcome to Democratic Underground.

and mega-mergers killed independent businesses.. then state-by-state cannibalization,,then sending jobs off shore.. (in a nut-shell)

Rolled the dice and we did fine. Unfortunately, my husband only got 3 years before he died, but he was never sorry we moved.

I am a bit regretful now though because the huge house we bought was for HIS stuff, and it's way too big for just me and the kitties, but I am not up for another move, so I stay.

We lived entirely on SS for THREE years before he retired, so we knew we could do it. We banked every penny of his salary for that 3 years, and had a LOT of cash by the time we moved, so financially it was a breeze.

I took my SS at 62 and he took his at 65.. He retired at 71.

Make sure you take advantage of the BEST Medicare add on you can afford. I highly recommend Kaiser advantage.

No one knows how long they will live, but don't waste time waiting to do things, because you never know..

Most important.. DO NOT OWE ANYBODY ANYTHING !!!

What I mean is that if you are in a low population but growing part of WA, sell your big house and buy a smaller one nearby. Some people may even buy the furniture that you don't want.

I won't do again. I just use the living room, kitchen & office.. and 1 of the 5 bathrooms and have the rest of it closed off..

I have a gardener and housekeepers who clean/do yardwork every other week.

I have a 3,224 main level and 3,224 finished basement.. I promised my boys I would not go downstairs.

Ever since my strokes in 2014, I have a touch of vertigo and stairs are not my friend

My house is pretty and I can afford it so I won't move again.

I spend about $1200 a month less than my income, so I'm ok.. a bit lonely at times, but I do get out as much as I can every week

I’m 39 and I have been “retired” for about four years, although with different circumstances.

Aside from the finances, make sure you have some sort of structure in your life. Join a volunteer organization, make commitments to be somewhere at a certain time, get a reason to get up in the morning and get out of the house. It’s nice not having to do anything at first, but after a while it gets very old. Personally, I fall into a deep depressive state without structure or something externally pulling me to get outside of my home.

Perhaps this is different for a younger guy, but a big part of my identity and self esteem was tied into what I did for a living. Not working, although it has created many opportunities in my personal life and to involve myself in my children’s lives, it has taken a lot from me in other ways.

I’m 53. Had you told me at 33 the wife and I would have saved as much as we have I would have guaranteed you I would retire young. Now I wonder if I can retire at 62!

We own a lot in a small town on the gulf coast where we plan to build a modest home with the money we realize from selling our current home.

Buts it’s the Healthcare!

And the hidden cost of this situation is felt by many of our friends. If I did not have to worry about healthcare I would retire in 2 years. The community we are moving to can use folks like my wife and I! Prime of our lives and with jointly 70 years solid experience in the business world. I would only need a job to pay living expenses as retirement is done and we actually have good pensions. But we can’t go because of healthcare. So rather than this town which suffers from horrible brain drain having 2 new residents with many good years left to volunteer, start a business, mentor or whatever, they will get 2 older people with a limit in the active years we have left. I mean I hope I can still be active at 75, but we all know there are no guarantees.

Ironically even my conservative friends in my age group think we need major healthcare reform. They just believe republicans have a plan

I know the wife and I have been more fortunate than most and have done Ok and we are thankful for what we have. But the healthcare issue cost this country in ways beyond the humanitarian and financial ways we often hear about. So much lost potential.

Anyway, your question. Besides all the good advice already given, I encourage you to find a good financial advisor. And if he tells you his service is free for managing your expenses, he or she is likely not a good advisor. Until I started paying for financial advice I did not realize that those ‘advising me’ were actually looking out for their financial interest, not mine.

Good luck and I hope you have a long and happy retirement.

One of my brothers used to get me and him a ticket on a charter boat. The boat owner didn't seem to want to do more than a couple of charters a week because my brother asked him for more to no avail. The boat was packed to the limit, people fishing on both sides, off the back and off a small space in front, I remember that was the case both times that I went, before deciding fishing was not for me.

But being on the kind of boat you speak of is my idea of hell.

We have our own smallish boat and can go out about 20 miles on a real good day. It not a very big boat!

One of our greatest enjoyments is taking newbies out and seeing their reaction at the dolphins, birds, sharks etc. And sometimes catching a few fish! The eastern gulf is as beautiful as any body of water in the world. Especially when you get 50 miles north of Tampa and the populations of the counties are 20-30k. The county we plan on retiring in has 16,000 residents! After 40 years in the Orlando area we can’t wait!

Being on the water with no other boat in sight is paradise to us.

Have a nice evening.

The republicans like to say that they are for freedom, but the “freedom to choose healthcare” and the “freedom from healthcare” are two very different freedoms.

Keep it coming. Some of it I already know like retiring debt free. My mortgage is paid off, my car is paid off, I have no credit card debt, and I have a large IRA and two more years to contribute. I plan on collecting on the IRA at the mandatory age of 70 1/2 and not before. I have the next two years to pay off some parent plus loans for my kids but that is my only debt. My and my wife's vacation pay upon retiring would wipe that out over night.

Regardless of where you work. If there is a voluntary workforce reduction by you employer and you are close to your retirement point, evaluate it.

One older woman who I worked years ago decided to take voluntary retirement when the company that I worked for at that time reduced headcount via a voluntary layoff plan. She had many years in and when she did the math, taking the plan was best for her. That was before the ACA, with the 18 month COBRA. When I asked people that knew her how things went for her, she did not regret quitting, she had all the money that she needed and she was spending time with her grandkids, taking care of them during the day.

They were pretty close to retirement and in 09 when we were told there would be a reduction in management headcount they approached our VP and basically said ‘pick me!’

They got several years added in to their service and a weeks pay for each year worked. All were pushing 35-40 years service.

of 65. And they come with 18 months of paid insurance. Some companies are even more generous on the weeks of pay per year, so people in those situations can literally bridge right into 65 and Medicare without missing a beat.

My husband is still working, I retired 2 years ago. The feds deduct your Medicare premium from your social security. The amount of your Medicare premium is based on your income 2 years ago so for the first couple of years it can be over $400 per month. I am not complaining! I just didn't know. With additional insurance and prescription coverage hubby and I pay about $1,000 per month (together, not each).

When he retires I expect it will go down.

If you wait to get your social security, you have to pay your Medicare premium out of pocket. The first bill, covering 6 months, was a shock.

That said I had a knee replacement with tons of rehab (long story) and my total out of pocket was $105.

Do the math on the "take SS now vs later". I ended up changing my mind and taking it now. Also remember, they will backdate for 6 months and you can get SS while working.

Make sure that all of your high cost repairs have been made before you retire. We're talking roof, AC, remodeling, etc. It really sucks when you retire with no debt, but then your roof needs replacing, and later your AC needs replacing too. Instant debt. I agree with everyone else that it's important to retire with no debt. I have a mortgage, but if I sold it, it would cost me twice as much to rent a comparable unit. Also, if I had to, I could age in place here, as it's ideal for an older person.

Thank you everyone for sharing your wisdom. I have heard some of this before and some of it is new. It is all appreciated. Onward and upward.