Retirement Planning - Lessons Learned

[forgeblast]

Andy I would go over to boggleheads its a financial forum. They have tons, of great information on retirement. Some of the nicest people, willing to help go over finances and what worked for them what didn't. There are also a ton of threads about places to retire, if you want two separate houses aka snowbirding, etc....

 

[HawkinsHollow]

So my original plan was to die before I retire... Like my dad. I never really planned to save anything, spent money on lots of trips to see and do (experience) whatever life had. Got married and our wedding vows continued that trend where we were take long trips twice a year. That stopped when we bought land, but still snow skied every year. Been to every state multiple times (except RI, never been there...) not a fan of leaving the country - Canada is about all I can handle and have done it several times now.

I lived like there was not going to be retirement... My wife's pension got pulled out from under her... She was laid off a couple years ago and because of her age, couldn't get a good job so she "retired" and she is starting a website design business (mainly to keep her busy); Green Geek Designs

She squirreled away some and I put into 401k (pretty sure the wife did that for me!!!). I pay the bills until I don't have money and she saves what she can.

The thing that I didn't plan on was working for the state but it happened when US Forest Circus and I had an "involuntary separation"... I started as a research technician @ NC State working in agriculture. Loved it and 30 years later, here I am looking at a nice pension that I didn't really care about when I started. It kind of fell into place for me...

Also, have checked off everything that was on my bucket list todo... and several more things that I did because it was on my wife's list (hate white water rafting, but have been on so many trips).

So are you saying you are in a good place financially, or still having to work to make ends meet?

I like to say I had a PRE-tirement. My first 14 years out of college I raft guided, ski bummed, travelled the world, etc. So my saving/equity building really didn't start until I was about 38. I am now 46. Have a house that has appreciated significantly since I moved in, 15 acres in a suburban setting that I got for a song (mostly cause it is 75% floodplain) and a modest 401k (that I am trying to grow, but not fast enough) I am also a school teacher with 7 years invested in the retirement system. You need 30 years to retire with full benefits of 60% of your best 3 years. Doubt I will make it to 30 with the way kids are now a days. I feel like I am not doing great in my preparations for retirement, but it could be worse.

What advice do you have for us "youngins"? Those of us who have +/- 20 years left in the rat race. Please enlighten us!

And BTW thanks for all of the great insight thus far.

 

[dodge man]

I am/was a land surveyor and retired 10 months ago, my wife retired 2 days after me. I’m 58 she is 55. We have a guy and my wife has an accounting degree, our guy and my wife both ran the numbers and there was no reason we shouldn’t retire. Trust the numbers.

My wife read something that really stuck with me, at some point you are trading time for money. You keep working for money you don’t really need and in exchange you are giving up your free time. I like cars, I’d love to get another, I’d love to add on to my shop and put a hoist in, I’d love to get a dump trailer and a diesel pickup to tow it, I wish I owned more land, a vacation home someplace warm would be great. I don’t NEED any of this stuff.

We aren’t planning on moving, we like where we are but Illinois politics may change that some day. Instead of buying a house somewhere exotic we planned on traveling. COVID nixed most but not all of those plans.

Some people worry about stuff to do. It really doesn’t take much to fill your day. If I cut and split wood for 2 or 3 hours, that fills your day. I did a boundary survey for free for our nearby road maintained building, I also helped him put a new cutting edge on his plow. Little things will fill your day.

Good luck on the planning, don’t go to early but don’t wait to long.

 

[riptides]

...

Concentrate more on building wealth than being in the clear. It's a better strategy.

Absolutely.

 

[riptides]

...

What advice do you have for us "youngins"? Those of us who have +/- 20 years left in the rat race. Please enlighten us!

Your 401k, pay yourself first. Make sure you max out on it. Maybe check into an IRA as another option for investing.

 

[ericm979]

Your 401k, pay yourself first. Make sure you max out on it. Maybe check into an IRA as another option for investing.

Yep, max that sucker out. Many 401k plans have higher fees than you'd pay investing yourself. So when you can (usually when you change companies) transfer the 401k to your own pretax investment account. Don't leave it in the old company's 401k plan. Once you're 50 the limit goes up by ~$6k/year (adjusted for inflation each year). Also put any additional money aside in an IRA and/or post tax investment fund.

As far as IT jobs (up thread), now is the best time to get a 100% remote job. There are more available than ever before, and once the vaccines are rolled out some of those will go away.

When I was a teen we had an older family friend who we rode horses with. A few times we rode to the house of one of his friends, a guy who had recently retired. Even as a teen I could tell that there was something off. Our friend later told me that he just didn't know what to do with himself in retirement. The guy died a few years later. I got the impression, right or wrong, that being adrift in retirement had a lot to do with it. So I vowed that I'd have lots of stuff to do when I retire. I've been semi retired for a few years now and have taken a lot of vacation time that's a "staycation" where I test out being retired. So far there's not been a lack of stuff to do. More like the opposite. My wife says I can't relax; I tell her not when there's things on my list.

 

[KennyG]

Having a will, health insurance plan, etc are all essentials. So is making your funeral wishes known to family. Be very careful with pre-paid funerals however. I know of several people who pre-paid, the family couldn't find the paper work, the funeral home claimed to know nothing about it. I would not recommend it. Go for cremation instead. Getting cheaper in a lot of states.

 

[fried1765]

Having a will, health insurance plan, etc are all essentials. So is making your funeral wishes known to family. Be very careful with pre-paid funerals however. I know of several people who pre-paid, the family couldn't find the paper work, the funeral home claimed to know nothing about it. I would not recommend it. Go for cremation instead. Getting cheaper in a lot of states.

I prepaid in the 60's.
My rich uncle Sam told me he would pick up the costs, and will even mow the grass.
I think that promise is still good!

 

[hslogger]

We had and have no inclination to leave our place that has been hard scrabble and fought for since early mid 1970. Unless we get so screwed up we can't keep it up, lease the ground or move around, we plan to live here till we die. We value community even though the population demographics have changed dramatically, we have strong connections, ROOTS. We are active as we can be and able to hire out stuff if we need to.

Job one is your health. All your planning is shot if you don't prioritize taking care of yourself. Don't do stupid stuff that you want to do that you shouldn't be doing. Face it and live with it. Get into a retired person's gym or make your own schedule and stick with it. STAY IN SHAPE. Repeat.

If you are investment savy, more power to you. We changed our plan when the stockmarket and world tanked in 2008. I don't have the nerve for it. up and down. If you find an advisor who you trust and you understand the risks, good luck.

Advance medical directive in notarized copies where they can be found. Same with POA documents. Medicare is a a right. Just remember to get ANY supplemental but be advised that there is a reason that one costs nothing out of pocket and others can a hundred or two or three. Make it CLEAR what to do with yourself if you die.

Don't be afraid to revisit your will and make changes, not in handwriting. Have it done by an attorney.
Revisit your farm and vehicle insurance, check in on your life insurance if you have it. Review all your stuff. refresh your memory.

If you have a safe deposit box make sure who ever you designate can get to it if need be.

I don't believe in downsizing, but we have crap that we have disposed of that had not seen any use in way too long.I've been to tons of auctions and seen stuff that would have served the owners best if they had sold it long ago.

Take a look around your place while you are young at heart and fresh in memory. Keep a file on your water system(s) where all your underground things are with drawn out maps where this switch, pipe, wire, or valve is. Make it easy for some one to come in and figure out any Rube Goldberg mickey mouse things you have done.

Map out all that stuff including your septic system. I have done all this stuff. I have my tools decently organized and manuals or files in a file cabinet with EVERTHING. It is smart. I pretty much know that what ever I do or if I travel, I have great peace of mind to enjoy retirement.

I'm taking care of things for a buddyamine on his deathbed.He is way too young to die but is. His set up from A to Z is a s###house and his widow doesn't have a clear picture of the workings of their everyday life outside of the check book. It is unpleasant to try and coax information out of a dying man while sitting patiently with a clipboard and pencil. And the thing is I bugged him about it, for years, and as much as he admired what I had done, he couldn't follow suite. go figger.

 

[fried1765]

We had and have no inclination to leave our place that has been hard scrabble and fought for since early mid 1970. Unless we get so screwed up we can't keep it up, lease the ground or move around, we plan to live here till we die. We value community even though the population demographics have changed dramatically, we have strong connections, ROOTS. We are active as we can be and able to hire out stuff if we need to.

Job one is your health. All your planning is shot if you don't prioritize taking care of yourself. Don't do stupid stuff that you want to do that you shouldn't be doing. Face it and live with it. Get into a retired person's gym or make your own schedule and stick with it. STAY IN SHAPE. Repeat.

If you are investment savy, more power to you. We changed OUR plan when the stockmarket and world tanked in 2008. I don't have the nerve for it. up and down. If you find an advisor who you trust and you understand the risks, good luck.

Advance medical directive in notarized copies where they can be found. Same with POA documents. Medicare is a a right. Just remember to get ANY supplemental but be advised that there is a reason that one costs nothing out of pocket and others can a hundred or two or three.

Don't be afraid to revisit your will and make changes, not in handwriting. Have it done by an attorney.
Revisit your farm and vehicle insurance, check in on your life insurance if you have it. Review all your stuff.

If you have a safe deposit box make sure who ever you designate can get to it if need be.

I don't believe in downsizing, but we have crap that we have disposed of that has not seen any use in way too long.I've been to tons of estate auctions and seen stuff that would have served the owners best if they had sold it long ago.

Take a look around your place while you are young at heart and fresh in memory. Keep a file on your water system(s) where all your underground things are with drawn out maps where this switch, pipe, wire, or valve is. Make it easy for some one to come in and figure out any Rube Goldberg mickey mouse things you have done.

Map out all that stuff including your septic system. I have done all this stuff. I have my tools decently organized and manuals or files in a file cabinet with EVERTHING. It is smart. I pretty much know that what ever I do or if I travel, I have great peace of mind to enjoy retirement. I'm taking care of things for a buddyamine on his deathbed. His set up from A to Z is a s###house and his widow doesn't have a clear picture of the workings of their everyday life outside of the check book. It is unpleasant to try and coax information out of a dying man while sitting patiently with a clipboard and pencil. And the thing is I bugged him about it for years and as much as he admired what I had done, he couldn't follow suite. go figger.

My "file" consists primarily of telling my two sons what I think they will need to know.
I do think I should give them some written documentation also.