Retirement

[RSKY]

Made my mind up tonight.

I'm gonna retire before summer gets here. Probably in the next sixty days.

I have worked at the same job in two different plants for two different companies for more than thirty years. Production supervisor in a union setting with high rates and a lot of conflicts. Pay has been good but the stress will kill you. At my last plant I trained twenty two in my job and only four lasted more than two years. I am finished with it.

Now that I've made the decision I must try to figure out my finances. How much of which account to tap into.

What percentage of your working income do you retired fellows need to make it? By making it I mean to not lower your living standards by much.

Wife and I have worked, gone to school, raised kids, worked night shifts and generally not taken the time or spent the money to enjoy the things some of our contemporaries have. But we paid off all our debts and put money back for retirement even in the bad times. Now we can relax while others in our age group look to work until 65 or more. I will be 57 in a few weeks.

Also helps that we married at 20/19 and are still together 36 years later. Divorce seems to ruin retirement plans.

Our daughters are grown, educated, and have good jobs. Our sons-in-law are hard workers, respectful of us and their other in-laws. They both have good jobs and look to advance. We will not have to carry them, maybe just a little help now and then.

I'm hoping to work at an easy $10/hour job maybe twenty hours a week until I turn 60. I don't think I will have to do this to make ends meet. But I have read several articles about people working in high stress jobs retiring then not living for more than two or three years. The article that stands out in my mind advocated getting a low stress easy job and working it for a few years before final retirement.

I think I am tired and rambling.

Any thoughts on this.

Goodnight

RSKY

Thank the Lord for 401K's !!

 

[Redneck in training]

Congratulation. You did the right thing in the past. We are in similar situation though I am little bit older. I am planning to retire in 2012 at 64. I also plan on working doing whatever is close to where we live.
You are right on keeping working. I used to work with guys (in generally low to moderate stress job installing instrumentation and process control equipment) that were counting years, then months, days and hours to retirement. They told us stories what they plan to do. How they will travel, play golf or tennis or garden. The problem is that those things, as opposed to a job, are optional and many of them just stayed home, slept too much, ate too much and watched TV to much. They were dead few years after they quit job. Only few actually did what they told us and many of those are still around many years later.

 

[marimus]

The article that stands out in my mind advocated getting a low stress easy job and working it for a few years before final retirement.

That there is some good advice. Find a part-time job doing something you actually enjoy and you're sure to be a happier person. Thats got to be good for your health right :thumbsup:

 

[Ken]

Retired at 59 and now 15 years later still have not needed the retirement funds. There is good jobs available to those who want to work. Construction has slowed but the repair type jobs are needed to be done. As soon as your known to be available people will call.
We have visited every state in the nation including Canada Alaska and are planning on a trip this summer to visit areas missed on previous trips. Just waiting on the weather to clear to travel to Wisconsin . Leave the lazy boy behind and enjoy the retirement.
ken

 

[bp fick]

About the lowest you can live on is 2/3 of your former pay. Until your SS kicks in at 63. So, you can take quite a cut in pay, by working a less stressful job, but you cannot take too big of step down.

Age 59 1/2 for tapping the 401 or the fees and penalties are too stiff, imho.

If you are 100% out of debt and refuse to incur any new payments of ANY kind until your retirement funds start coming in, That will help a lot. Best regards on your new walk thru life. May it be good and blessed.

 

[NativeSon]

My Dad who retired from the Poice Dept. after 27 yrs. and the restuarant business after about 20 yrs. He was a world class putterer. He always had multible projects going on out at the house. He always said you have to stay busy, he'd seen to many guys retire from the police dept. who were going to spend all their time fishing and hunting who were dead in two years.

 

[phiferpharm]

I retired from the Military reserves last September and now may retire from my school board job as early as June, when I will be 62. Between the missus and I, who retired after 34 years as a teacher, the income is more than our working salaries were when both working full-time. That does not take into account my funds available when I retire from the school board or my Social Security.

I felt like I needed to have about the same earnings whether working or retired on a monthly basis. I could have done with less, but I wanted to get out of Miami, own some land, build the house I promised my wife 40 years ago (okay, I'm a little slow), and enjoy "working" an outside job.

The main concern I have going forward is to have some hedge on inflation, as todays income may not look real good 10 years from now, and selling/renting my Miami property. What I'm going to do with my time is less of a question and more of an intracate selection process with the "HoneyDo" list that confronts me on the weekends I have on my place in North Florida. I think Mrs. Phiferpharm figures the longer her list gets, the more I will see the need to get my rear-end up here full-time.

I will keep working doing what I originally started my career as - a teacher. The difference is it is College classes and I do it all online, so there is no need to live in a specific place. Great part about teaching Virtual College is my students think I'm young and Handsome, and so far, no one has asked me why I'm wearing a polyester Leisure Suit on my Instructors homepage.

 

[MF 1532]

I am 48 , I have friends my age counting down to retirementnot me...yet . I enjoy owning my own business and look forward to taking a few days off here and there . I go to a local restaraunt for breakfast every morning , before work and eat with several " senior friends ". Some stay very busy , some live to come to that restaraunt three times a day . IMO you have to have a reason to get up every morning . Congratulations, sounds like you have done a good job raising your family and providing for them , managing your money and planning for this time in your life .:thumbsup:It sounds like your doing the right thing , enjoy it .:thumbsup:

 

[RSKY]

I have had a long nearly sleepless night.

Retirement has been in the back of my mind for more than six months but I always waited. Then the nurse called and said my PSA was rising. Not too high yet but going up a full number every four months. Had the biopsy on the 31st and it came out no cancer. But one of my three brothers in law had to have radical prostate surgery last November and another had a biopsy the same day as me and he now has it. He is younger than I am. That got me to thinking more about retirement. Wife is afraid I am ruining my health stressing over 'the job'. She wants me home enjoying what I have worked for all these years.

According to the 'retirement planner' on the Fidelity website, we will run out of money when I am 93! More about that after I fix my coffee.

 

[CurlyDave]

I have had a long nearly sleepless night...

According to the 'retirement planner' on the Fidelity website, we will run out of money when I am 93! More about that after I fix my coffee.

I would not trust a retirement planner.

You can do this on your own. Don't even think about it as retirement. At the age of 63 I declared myself independently wealthy, and stopped working for an employer. Think of it that way.

You have almost 40 years of experience in living on your own -- you know what it costs. Sit down with a pad of paper and make a budget. That Fidelity planner assumed that your were going to give them a big piece of your money in the form of "management fees". Learn to manage your own money and leave management fees behind.

Just realize there will be rising medical expenses, and unexpected things will happen.

I didn't stop working, I just stopped working for someone else.

 

[RSKY]

As I stated above I have been thinking about getting out for a while. Just couldn't make myself do it. We have been talking about retirement for more than four years since the old plant where I worked closed. Mrs. RSKY retired last June from her teaching job. I always expected my retirement to be closer to 59 1/2 when the 401K became available.

Anybody ever hear of IRS 72-T ??

You can use that rule to draw out your 401K early with no penalty. But it is somewhat complicated. More on that later.

The biggest of out three 401Ks is with Fidelity. They have an excellent planning page on their website, www.401k.com. Don't know if you can get into it if not a customer but I would try if I was thinking of retirement.

The first thing we had to do was learn how much we spent each month before we planned anything else. We have a 'one checkbook' rule for paying the bills. One checkbook is placed in a certain spot and all 'payments' are made from it. No groceries, clothing, or extras, just bills. My wife made out a template and put all our monthly and regular expenses for 2010 on it. Electric, gas, water, internet, satelite tv, house phone, cell phone, insurance for home and vehicles, church contribution, health insurance, trash pickup, newspaper, safe deposit box, payment for her vehicle, and (drum roll) allowance for a tractor payment. I put all these on a spread sheet with lines at the bottom for average, monthly high, and monthly low.

I took the highest month for the year for each item and added them together. For example our gas bill was $200 in March, but only $6 in June. So gas gets budgeted $200 a month. Others stay the same all year round, Internet, house phone, etc.. I took this total and added $1000 to it for food and clothing. This is our monthly 'essential expenses'.

I entered this number in the expenses slot on the planner. It then asked for monthly 'discretionary' spending. I put in an amount that I thought would allow us to eat out regularly, buy stuff for grandkids, travel, and buy new tractor implements.

The planner asks a lot of questions about your investments, work in retirement, etc.. It also adjusts for inflation. In the planner I placed all my funds on the very conservative, safe, lower paying investments.

Anyway, according to Fidelity we will run out of money at age 93. Told my daughters that each would have to take one of us to live with them.

 

[jinman]

As Dave mentioned, I think medical expenses and keeping insurance are the big issues before you turn 65. If you can afford the insurance or have a plan for coverage, you'll be fine. I am retired military. Having Tricare is a blessing. Without it, I'm not sure I could have retired as I did before turning 61. My wife and I have enough income that I only tap our considerable savings for occasional luxuries. We both had some real estate we sold and paid off debt. That also helped a bunch to reduce unneeded expenses.

On the other hand, my brother and his wife have their home paid for, but they only have social security and Medicare to live on. They struggle constantly just to survive.

 

[ultrarunner]

Congratuations... on planning for the future and finding the right spouse!

A friend was in a very high stress job for years as a production manager for a Glass Manufacturer... he was getting ulcers and his health was suffering so he left after 33 years with his pension.

They moved to Florida to be near family and his health really started to go down...

There was a local supermarket that always had hiring signs in the window... one day he asked the manager why and the response was most new hires are young and eventually stopped showing up for work...

My friend said he wanted to apply and the manager was caught off guard... he then hired my friend as a courtesy clerk... he absolutely didn't need the money.

He had a great time, loved coming to work seeing "His" customers and really liked working with the teenagers and 20 somethings... he believes finding that job saved his life and his wife said he was a new man being able to be respected by the young generation. He had made so many new friends... some customers would only come when they knew he was on duty.

 

[mscheer772]

The 2/3 salary rule is hooey. We live on 1/8 what I last earned.No reduction in standard of living. I guess this benchmark is for a lower ending income.

-Mike-

 

[ultrarunner]

The 2/3 salary rule is hooey. We live on 1/8 what I last earned.No reduction in standard of living. I guess this benchmark is for a lower ending income.

-Mike-

I would agree depending on standard and salary...

I also see the opposite... people that retire and spend a fortune on travel or medical related expenses... as in taking out a home equity line of credit to fiance a few years of lavish travel and then loosing their home when the bill comes due... it does go both ways.

Nothing is fool proof.

 

[tglass]

Keep in touch and let us, or me, know how this works out. I've thought about it for the past few years and wonder if anyone would hire me now, even with my past and present certifications. I'de love to have a $10.00 hr. job if the ins. was there. I have the retirement money, but ins. coverage has become the problem. Want to hear more.

 

[300UGUY]

I'd go for it. I retired in 08, my decision was encouraged by a buyout & the fact that the plant was closing. My wife is 7 years younger and still working, so that helps, but everything looks great here. My blood pressure, sugar levels and general aches and pains have all improved. I feel 10 years younger. Might as well get a few years in the sun, you never know what the future will bring.

 

[Travelover]

I retired at age 54, four years ago. You are on the right track in going over your past expenses to get an accurate estimate of ongoing expenses. Trying to use a fraction of your current earnings to estimate retirement expenses is not practical. For instance, I was saving 40% of my salary before I retired. Now that expense is gone and my house will be paid off in 3 years, so that expense will also be gone.

As others have said, having affordable health care insurance is key. As far as working is concerned, it is really up to you. I have never worked again after I retired and don't miss it, but if I did, I can afford to take any job I want, even a clerk at a hardware store or an all volunteer gig like Habitat for Humanity. The good part is you get to do what you want without worrying about losing your job and your family's security. Once you lower your stress, your health will improve in ways that you didn't even realize was a problem.

 

[QRTRHRS]

Medical is a big issue with me at sixty and my wife who is sixty four. We too lost good jobs and eventually our medical. At least our pensions are still intact for now. My wife draws SS and tends to the horses and my elderly mother who lives with us. I would pull the plug at sixty two if I can have medical one way or another.

I figure on finding something part time to fill in the difference between 62 and 65 SS wise. Though I still have places that I would like to see, travel seems like such a hassle, I would just as soon stay home. Besides, I have horses that will outlive me so I have plenty to do.

There is one trap that you do not want to fall for. I have seen retirees get hired and then get sucked into working far more than they originally wanted too. Seems this week only can turn into many weeks. Perhaps the thought of some extra money is enticing?

Agree on your terms and then stick to them job wise.

 

[zzvyb6]

I believe you can live comfortably on 1/2 your working income, Provided:
House paid for, no debt, good health, and something to do with your time. I 'farm', help the neighbors, buy and sell on Craigslist and eBay, play hockey 3 - 4 time per week in an over 60 league, don't smoke, and am de-cluttering the house, shed and barns. I bought a golf cart and drive it around the property when weather permits to the great enjoyment of my dogs. If I needed extra money to live on, I can rent stalls to horse owners/boarders. I have an approve home equity loan on the property if I wanted to buy a new car, tractor or vacation. Mom still works as a House Keeper (and keeps up the house) and that's what else we can live on. Food, taxes, insurance and fuel are our only costs. Make sure your kids understand that you as a bank is done for the endurance.