Retirement planning

[doxford jim]

In spite of what a lot of "financial advisers" say, one still has to take an active interest in what is happening with your investments.
I had a bad investment adviser that lost about 1/3 of the money I had saved - he blew it off as normal when investing. I moved and changed advisers and found the second one to be much better and we worked together. I had a gut feeling some years a go, that the market was going to tank and it did for a couple of years. I had instructed the adviser to put money into GIC's and CD's. Well we didn't make a lot but we didn't lose anything. I have done the same thing again - insisting that my input is just as important. The current adviser is not so swift and seems to think he dictates what I do with my money !!! Had to enlighten him to what my plans were and it wasn't to lock away my money to make someone else rich - he wasn't so happy afterwards.
There will be ups and downs along the way but I think they key is to be proactive.
I retired at 60 years of age 10 years ago - money isn't plentiful but we manage.

 

[HeLa]

great thread. i've been doing a good bit of research on these topics lately as well.

i haven't seen it posted here yet, but this has been a great resource in my internet research: Reddit Personal Finance

 

[wmonroe]

Being able to work on your own terms doing the things you want to do when you want to do them is my dream. I think that's what you're saying? It could also mean not working for someone else a day longer than necessary?

Yes to both, if that's possible. I don't want to HAVE to go to work any longer than necessary if I can retire, but I plan to work (on my own projects/for the wife) up till I can't physically do anything anymore.

My advice is to live below your means and save 10-15% of your gross income. Most pension plans (that I know of) max out at 70% of average of your last 5 years (and sometimes best 5 years) wages. I think your pension plan should be included in that 10-15% figure. But then again, I don't know the details of your pension plan. It sounds like you're on the right path. P.S. Be ware of depreciating assets (my cryptonite) for they will consume your money faster than a divorce! lol :2cents:

Depreciating assets are a tough one for me too. My truck is 7 years old and I would really love to get a new one and could pay cash but mine is in great shape so I'll keep fighting that urge.

There are also ways to use your 401k saving to start your own business if that is something that interests you. PM me and I can connect you with some folks that can set that up. https://www.guidantfinancial.com/financing-solutions/401k-business-financing/

Not interested right now in starting my own business. After a year out of college I started my own small business and did ok for about five years but got tired of the state requirements, insurance, trying to get reliable help, etc and moved on. I appreciate the offer though.

 

[wmonroe]

That is a great point. I work 8 to 9 months, hard core, then play around the rest. Let's me make the money I want and still enjoy life. Hopefully can do that another 10 years, then only work 5 to six months a year. The thought of retiring isn't a priority, I really enjoy my career.

That is a benefit of my current job, we use a lot of contractors. So I could semi retire but come back as a contractor and work anywhere from 1 to probably 6+ months a year. That's always an option if I still have this job and need to supplement some extra money at the beginning of retirement.

 

[JimRB]

I am so far behind on everything financial that I should be in freak out mode. When we built our house I did a lot of the work, electrical, paint, finish carpentry, tile, hardwood floors. I did not fancy a 30 year note as I would be paying when I was of retirement age so I always paid a bit extra. I refinanced twice doing 15 year notes. In a year the house will be paid off. 19 years of payments which is better than 30.

I do have an affinity to gadgets. I spend too much on things my uncles and Dad never wasted money on. But I do fix my own vehicles and buildings as they did when possible which means almost always. Some of those gadgets may be car repair tools, sometimes bicycle related,.

A lifestyle/retirement strategy website I like is Mr. Money Mustache — Early Retirement through Badassity I also like the Dave Ramsey statement about the new status symbol is the paid off mortgage. 100% of the foreclosed properties had mortgages. For me I have less stress knowing that I do not have to make that $1,600 a month mortgage. I just need to save for the $300 a month house insurance and taxes escrow. Plus the new roof and any other house repairs.

I also am hoping to get some rental property after I get the house paid off. German friends, naturalized years ago I know have done well in retirement with income from saving plus rental income. The stock market seems like a house of cards and the national debt is frightening.

 

[Parkanzky]

Any retirement planning for someone in their middle years that doesn't include a significant provision for setting aside some REAL money (gold/silver) is short sighted.

I'd counter that by asking what exactly makes gold or silver valuable nowadays?

 

[Citydude]

I am so far behind on everything financial that I should be in freak out mode. When we built our house I did a lot of the work, electrical, paint, finish carpentry, tile, hardwood floors. I did not fancy a 30 year note as I would be paying when I was of retirement age so I always paid a bit extra. I refinanced twice doing 15 year notes. In a year the house will be paid off. 19 years of payments which is better than 30. I do have an affinity to gadgets. I spend too much on things my uncles and Dad never wasted money on. But I do fix my own vehicles and buildings as they did when possible which means almost always. Some of those gadgets may be car repair tools, sometimes bicycle related,. A lifestyle/retirement strategy website I like is Mr. Money Mustache — Early Retirement through Badassity I also like the Dave Ramsey statement about the new status symbol is the paid off mortgage. 100% of the foreclosed properties had mortgages. For me I have less stress knowing that I do not have to make that $1,600 a month mortgage. I just need to save for the $300 a month house insurance and taxes escrow. Plus the new roof and any other house repairs. I also am hoping to get some rental property after I get the house paid off. German friends, naturalized years ago I know have done well in retirement with income from saving plus rental income. The stock market seems like a house of cards and the national debt is frightening.

I was concerned when I decided to retire because lots of stuff I read on the Internet ( has to be true) said I needed double what I had saved. I went to a financial planner and found out I'm in good shape. Setting down and developing a strategy with someone face to face to me is invaluable. Retirement for me, is a lifestyle change in spending habits. I just can't buy the sports cars like I used to or travel on exotic fly fishing trips once a year. Besides, I would have eventually killed myself in my 575 horse powered Mustang anyway. So the wife says....

 

[xtn]

I say that because a person can buy a livable house around here in a safe neighborhood, (everyone attends the same schools) for $70K-$80K, monthly mortgage payment under $400. If people can't afford that, how can they afford the $600/month minimum (guessing, probably low) I would have to rent it for? $80K @ 4.5% interest is $3,600/year with no tenants or midnight calls.

I see used doublewides setup and rented on the outskirts of town by landlords, they don't attract the sort of people I would like to rent to.

1. Some (not all of course but some) people can afford the higher rental price and just don't want to buy for a variety of reasons.

2. Depends on the area of course, but I'm going to buy a couple of rent houses in the next few years and will be looking for upper middle class neighborhoods. I figure the tenants will likely be more stable, generally older and more responsible, etc. I hope I'm right.

 

[NY_Yankees_Fan]

I'd counter that by asking what exactly makes gold or silver valuable nowadays?

Looks like gold WAS a good investment about 5 years ago, buying now not so much.

Gold Price Chart

 

[xtn]

I want to comment on the idea that, "I don't really want to be the rich guy in the grave yard."

I've heard people say they plan to run out of money on the day they die. My immediate thought is always, "Gosh, I hope you don't live any longer than you thought, or you're going to be a broke, miserable son-of-a-gun!"

xtn