Retirement Planning - Lessons Learned

[Hay Dude]

Watch the wave of hyperinflation on the way. Look for ways like gold, commodities, REITs and leveraged loans as a hedge.

 

[ultrarunner]

Great Thread and plenty of food for thought...

The men in my family never retire... they were all self employed and worked until they dropped... 73 for Dad and his father and 90 for dairy farmer grandpa on the other side...

Maybe I will be the first to change this?

 

[Jstpssng]

Watch the wave of hyperinflation on the way. Look for ways like gold, commodities, REITs and leveraged loans as a hedge.

In a few weeks when I get my annual match I plan to bury my 401K into the safest place my employer's plan offers. I hit my goal for last year, putting me right on target where I want to be; and don't want to lose it by getting greedy.

 

[3Ts]

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.

The company I worked for put out a newsletter and included an obituary section. What I noticed was that those that had no outside interests and only their job, were dead in about 2 years. They stopped the obituary section after awhile.

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.

This happened to my uncle. He had a pre-paid funeral and burial plot but none of the family could find the paperwork and the funeral home deniged there was one.

 

[fried1765]

Watch the wave of hyperinflation on the way. Look for ways like gold, commodities, REITs and leveraged loans as a hedge.

You obviously also see what I see coming!

 

[Whidbey]

If you have the means...get the mortgage paid off. It takes a huge load off your mind. Even if your IRA tanks, you have your home.

If you have any credit card debt, you should not retire. You have established a lifestyle that is above your means. If you cannot control it you are going to be in trouble quickly.

Have all or most of your "toys" paid for.

If you have a spouse or partner that wants to retire "in style" and you cannot afford it...get rid of her/him if you can. If married to her/him prepare for "issues".

Cost of divorce should be evaluated. Many seniors realize they will not enjoy retirement with the person they have only had to endure 24 hours a day for two days a week. Spending 7 days a week them, with no work to escape can trigger it. If you have friends and your partner does not...that is a another "red flag".

You will need/want about 65% of your pre-retirement income until you learn to live on less.

If you do not have a company pension or government job pension, do not depend on SS. Which means you need about $500k to $1 million in investments.

About 15% of people over 65 live in poverty and only 58% live at double (or more) than the poverty level. The good news about living in poverty is that life expectancy goes down so you may not suffer for long.

Lots of folks do not have "Golden Years".

Good advice. Another thought on marriage issues: if your marriage is having problems don't ignore them hoping they will go away..
They are more likely to get worse than better.

 

[drssg]

So for the experts:

- What have you learned in retirement?

- What would you have done/planned for differently?

- Did you move away or stay at home and are you happy?

I'm 5.5 years into retirement, and the biggest thing I've learned is that I LOVE retirement. The biggest privilege for me it to get up every morning because I woke up and I don't feel like sleeping anymore. I used to have trouble falling to sleep sometimes, because I was thinking about job stuff or I had a cup of coffee a little too late. I would stress out over needing to get to sleep, because I need to get up early. The second biggest privilege is that I'm rarely in a hurry. Things take as long as they take, and that's life. I have plenty of work to keep me busy, but if I feel lazy today, that's OK too.

So far, I haven't found anything that I wish I did differently. I made a spreadsheet to estimate my future portfolio value over time, with some conservative assumptions regarding investment return, spending, inflation, and social security. I also reviewed that spreadsheet with my financial advisor to see if he thought my assumptions were reasonable. By comparing my current status with the plan, I can keep a better idea of reasonable spending.

I stayed home, but I see that as a personal decision. It all depends on what you want to do. I spent a number of years building a horse farm while I was working, so my retirement was to be able to enjoy it.

Good luck on your journey.

 

[JethroB]

Here's a fun fact from a recent Vanguard investors newsletter:

 

[fried1765]

Here's a fun fact from a recent Vanguard investors newsletter:

View attachment 684412

Yep......I have been taking the minimum 4% from my 401K for the last 10+ years.
Even after the required distributions, the total 401K value has been increasing each year.

 

[kenmac]

the largest expense for someone retiring early will be healthcare cost.
I have many friends that would love to retire early if it wasn't for the high cost of health insurance.

I lived in town /city until I sold my business and retired.
After retirement, I bought a small farm that keeps me busy and in shape.
Had I not bought this farm After retirement, I would have been bored out of my mind

I have been retired for five yrs now, and have no regrets .. I'll turn 63 in march