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.

 

[txdon]

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.

Free time = living time. I heard the same thing at my brothers funeral from his former co-worker that tried to get my brother to retire when he retired. My brother never retired.

Also the #1 reason why people move from their "retirement home" - is to be closer to their kids. "You always need to be ready to adapt", My neighbor said who lived to be 102.

Taxes/maintenance/insurance/increased utilities will take the place of a mortgage very quickly.

 

[JethroB]

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.

That's what my dad did for years. He once told me his will was simple, just divide everything among us 4 kids. And you are the Executor. Uh oh. :shocked:.

It took me 20 years to convince him to be more specific and keep me out of what would have been a very hot seat. Even then there were some rough spots with a couple of family members who thought they were "entitled" to certain items. A tractor being one.

 

[RalphVa]

Completely happy. Retired at 56. Plan for near the same amount of income as you spent when employed.

I managed to get into master gardening, editor of their newsletter. Also got into local HOA and master naturalists. Had to drop out of all but MG stuff when I got congestive heart failure end of 2012.

We stayed in Baton Rouge trying to sell our 6 BR, 6 bath place. Took 2 years to do that. They went looking and ended up in Virginia. Later, the wife says she (a NJite) always wanted to retired to Va.

Trying to stay here until they take us out feet first. Medical stuff might be the only thing that drives us out.

Ralph

 

[Jstpssng]

The minimum yearly withdrawal under the 401K rules is something like 4% per year.
I have been withdrawing that minimum for 10+ years, and my 401K value keeps slowly rising.
Just a number (%) you might want to think about.

That doesn't apply until you turn 70 1/2 though, which is about when I hope to start. For the first 5 years I won't be able to completely stop working, but do hope to give up showing up for work 5 days out of the week.
I always wonder about percent of income vs pre retirement... if living expenses don't include rent or mortgage, it seems like that would be a big difference.

 

[Jstpssng]

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.

Can you work someplace else in state government, and keep your tenure? An uncle did that; he worked as a teacher for about 15 years and just couldn't take it anymore. HE went to work for one of the state fish hatcheries, and finished his time there. You are about at the age I was when I started thinking about retirement savings, and while I'll never do some of the things many others do, I am saving and as I mentioned before, should be done sometime after my 65th birthday.

 

[buck12]

Funny how this topic comes up today. Last week I had a meeting with the boss and HR where I was told my position was terminated and I am welcomed to apply for another job within the company. There are none that I qualify for, I am in my 50s and deaf. After 23 years...just like that your done.

I am in a state where IT jobs are scarce and pay little....no one will come close to paying the salary I made...so what do I do? Retire early? File for Social Security Disability?

Move to a third world country?

I remember hearing companies like to get rid of the older folks and now I believe them(age discriminations). Keep in mind yes IT jobs are plenty in place like Maryland...but I would have to move. Also I cannot work with customers or venders and I have other complications I will not mention here.

I do have a lot of anxiety and I am a little worried....will try and retire now if I can and get over having to deal with working for others for good.

I hope things work out for you.

 

[Steppenwolfe]

I get that some of you guys are leaving jobs that keep you from living the life you would like to live; I'm the opposite, my job allows me the life I have. Granted, being self employed and loving what I do makes that easy. At 62 our kids are in 4 different states with their own lives, no grand children, and no parents to worry about. We feel like 19 again with our lives just starting out. Retire??? I doubt I ever will truly retire, life is too good!...

 

[ruffdog]

I just have to get my "retirement job" that allows me to work from the seat of my boat.

 

[MossRoad]

I just have to get my "retirement job" that allows me to work from the seat of my boat.

Panfish fishing guide! :laughing:

 

[Jstpssng]

Free time = living time. I heard the same thing at my brothers funeral from his former co-worker that tried to get my brother to retire when he retired. My brother never retired.

Also the #1 reason why people move from their "retirement home" - is to be closer to their kids. "You always need to be ready to adapt", My neighbor said who lived to be 102.

Taxes/maintenance/insurance/increased utilities will take the place of a mortgage very quickly.

I pay those now, why will they be that much more when my mortgage is paid off?