Retirement Planning - Lessons Learned

[Macinnis]

I got a text message today asking if I wanted to sell my home.

Two weeks ago, got a letter asking if I wanted to sell my land at 10% of what I paid, before I improved it.

Both seemed like @Larry Caldwell was on the other side.

 

[Larry Caldwell]

I got a text message today asking if I wanted to sell my home.

Two weeks ago, got a letter asking if I wanted to sell my land at 10% of what I paid, before I improved it.

Both seemed like @Larry Caldwell was on the other side.

What an odd thing to say.

 

[Larry Caldwell]

Why would you invest your emergency fund??

There's no need to hold it in cash after a crash. If it turns out you need money, just sell the assets. The whole point of an emergency fund is to not be forced to sell assets at a loss. If someone else has already taken the loss, that reason disappears.

 

[MossRoad]

I would never put our emergency fund in the stock market, even after a crash, because it can always go lower. Investing it like that is trying to time the market. That's the whole point of the emergency fund. To have cash for emergencies, not risk it, even if it seems like a sure thing. It's self-funded insurance.

 

[dirttoys]

There's no need to hold it in cash after a crash. If it turns out you need money, just sell the assets. The whole point of an emergency fund is to not be forced to sell assets at a loss. If someone else has already taken the loss, that reason disappears.

Larry, does that mean you can pick the bottom. I spend a lot of time calculating entry and exit, based on short and long term moving averages as well as a pile of other stuff. I know I can't pick the bottom. I keep 20% of invest-able money liquid to buy dips. BUT, I know the odds of short term losses on those funds are at least 50%. My emergency fund pays the bills till the market corrects. IF I knew where the bottom was for certain, life would be so much simpler..............

I don't think you can say just because the market gave 30%, that is doesn't have another 30% to give. I have 5 years of living expenses in cash/cd's that pay nothing, but, I would be loath to invest that if I genuinely thought I needed it.

Best,

ed

 

[goeduck]

I have been keeping $100K in cash (not in the market) as an emergency fund for a long time. Probably too much but everything is relative to your situation.

 

[oosik]

Goeduck - I've been keeping $$$ in the bank for a long time also. Everybody has a different situation. It's very comforting to know than in an emergency I will not have to eat dirt.

 

[Frankenkubota]

For the last 20-30-40? years i've been hearing all about how americans don't have enough saved for retirement. In many cases not a penny and in many more cases, deep in debt.

It's been 20, 30, 40 since i started hearing all that. Whats happening to those folks now?

 

[RickB]

There's no need to hold it in cash after a crash. If it turns out you need money, just sell the assets. The whole point of an emergency fund is to not be forced to sell assets at a loss. If someone else has already taken the loss, that reason disappears.

.

 

[hugo454]

Did a search and didn't find any recent threads so here we go......

At 58 with the Good Lord willing my retirement window is 4 to 7 years out. Job is steady albeit stressful at times and hoping I can just ride it out and be happy until it's time to pull the trigger. Finances are in order and almost debt free! Wife and I have been truly blessed.

I hang out here on TBN hoping to buy that subcompact one day for a retirement toy. It will be the Massey GC when that day comes.

One marital debate is will we uproot and move to a retirement dream home we've always wanted or will we stay closer to home and family.

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?

Thanks for your time.

Andy in N.C.

answered in order:
I learned that I work more now than when I had a job (around our home and property and at daughter's home)
I would have bought into the early retirement plan when I had the chance ( I was a former city worker)
We moved to the country,no mortgage,no debt

I retired at age 58 at the onset of Covid

 

[KennyG]

For the last 20-30-40? years i've been hearing all about how americans don't have enough saved for retirement. In many cases not a penny and in many more cases, deep in debt.

It's been 20, 30, 40 since i started hearing all that. Whats happening to those folks now?

Some are in real trouble, some are getting by. Retired people continue to be, on average, the wealthiest group in the population. Those that took the future seriously and planned for it are doing better than they ever expected because of the great growth in investments. The others, in most cases, are just getting by and don't have the luxurious retirement they wanted.

 

[Fuddy1952]

^^^Very true^^^
As a kid I read Aesop's Fables. "The grasshopper and the ant" I remembered.
"A Grasshopper frolicked while an Ant stored food for the winter. When winter came the Ant was comfortable; the Grasshopper not so."
My 73 yo brother had a very successful business for years, sold it for peanuts, partied, now in bankruptcy. They're barely able to make it.

 

[Fuddy1952]

I started retirement saving in my 20s, retired at 61. My Dad retired at 56. Be frugal living below your means.
Our banker says most people spend to their income. A good friend & wife were making together about $300K/yr fifteen years ago and lived like it...bought an expensive home, Lexus, etc. Now in their 60s lost jobs, making $100K. If they lived as if they were making $100K back then they'd be on easy street today.

 

[MossRoad]

Ouch!

We've always planned our expenses on two people making minimum wage. Everything else is gravy.

 

[goeduck]

For the last 20-30-40? years i've been hearing all about how americans don't have enough saved for retirement. In many cases not a penny and in many more cases, deep in debt.

It's been 20, 30, 40 since i started hearing all that. Whats happening to those folks now?

I won't state my opinion on how some of the people you refer to are expecting to get by. TBN posting rules.

 

[ultrarunner]

For the last 20-30-40? years i've been hearing all about how americans don't have enough saved for retirement. In many cases not a penny and in many more cases, deep in debt.

It's been 20, 30, 40 since i started hearing all that. Whats happening to those folks now?

Some are in subsidized housing with discounted utilities, free computers and cell phones and fully covered medical…

Subsidized housing varies but senior only has some very nice offerings in some great locations… speaking locally SF Bay Area

 

[MossRoad]

For the last 20-30-40? years i've been hearing all about how americans don't have enough saved for retirement. In many cases not a penny and in many more cases, deep in debt.

It's been 20, 30, 40 since i started hearing all that. Whats happening to those folks now?

They're living in crap apartment houses, old hotels that have been converted to crap apartments, and other not so nice places.

 

[goeduck]

They're living in crap apartment houses, old hotels that have been converted to crap apartments, and other not so nice places.

Curious, who you think is responsible for this situation?

 

[ultrarunner]

As stated no plan can be a viable option for some… all depends on expectations.

The wait for subsidized housing often is many years but expedited for seniors.

People living in the street I encounter and I encounter a lot are seldom of retirement age… most teens to about 40.

Many have burned too many bridges when it comes to family/friends.

Others don’t like rules… some have pets they couldn’t keep and some simply don’t have income and or programs in place.

A difficult situation for sure… the nearby supermarket spent over 9k cleaning up a camp… and now ongoing security to keep clear as an unbelievable amount of trash accumulated… plus utility theft.

 

[goeduck]

^^ With all due respect to you and Moss, both of which I greatly admire:

Boo Hoo !!