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When to retire


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I am wondering this morning as I sit her and it is quiet, if anyone else on the forum is struggling with how to retire. I have worked in my profession since 1975 and I look back and firmly believe my career and employment have been good to me and my family. I now wonder after just turning 59 this month what the quality of life is going to be like for me in the next 5-10 years.

 

This is really starting to bug me. I don't want to work until I am no longer able to enjoy myself and some of the simple pleasures in life. I have done what I believe is a good job in providing for my family and children, but believe it is time to move on.

 

The economy is terrible and I am not sure in the near future it will improve. I am looking for some perspectives from my forum friends on how they are addressing this chapter in their life.

 

GG :headscratch:

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Well GG when you get an answer let me know!

 

Seriously, I am in the same boat, I'm 56 been working in my profession (mechanical designer) since 1973. I know the older I get the more my health will be affected! I would love to retire. My one son said that he would like to have the house we live in, but he can't afford it! I have an In-law apartment attached that was going to be my retirement home. I could rent that out and cover my mortgage payment every month but then I would still have to take care of the place! If I sell the house I would get enough to pay off all my debts and have very little left..... So I guess I'm stuck working until I die!

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If you can afford it and are happy with your income level, do it.

 

You only live once and then you don't.

 

You should weigh the benefits in retirement payments by continuing to work etc... and then decide its all about money verses your opprotunity cost.

 

Good luck with your decision, it a hard one.

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After you factor in the money you will need to be happy, healthcare, transportation needs, money to cover all your bills, home upkeep, and a emergency fund....if you have that, pull the plug and make everyday a Saturday. :happy feet:

 

I think the key is to be debt free, have some newer cars, have a house that will not ding you to death, have a solid monthly income and have some money for health care needs.

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This certainly is a tough time for those that are close to retiring. I'm the eternal optimist, but I believe the recovery will be many years away.

 

I turned 49 this past summer, and want to be mortgage free and and stop working for a living when i'm 55. Then I can work for fun, at my pace, when I want...thats my plan, and I'm sticking to it!

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This certainly is a tough time for those that are close to retiring. I'm the eternal optimist, but I believe the recovery will be many years away.

 

I turned 49 this past summer, and want to be mortgage free and and stop working for a living when i'm 55. Then I can work for fun, at my pace, when I want...thats my plan, and I'm sticking to it!

 

 

I'm 50 and coming up on 51 Dec. 30th.

 

Like you I have about the same goal. On my 54th Birthday I am eligible to retire from my trade as a Union Carpenter. My mortgage is free and clear. All our cars and toys are just about paid for. Still owe 6K on my wife's GT500 and then we will be debt free. That bill will be gone in 3 months. My 401K has enough money in it to cover me until I turn 62. My pension is strong and substantial........so I am looking forward to it. I need to rat-hole more money over the next 3 years then I'm going to enjoy Saturdays....every day.

 

...and like you, work when I want.

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I am glad I am not the only one that is giving this some thought. My plans are to be debt free other than our house payment in 2012 and with all other bills paid. My IRA is in good shape as I trimmed investments back to 70% bonds and 30% stocks for a steady stream of income.

 

You only live one time and then your gone and for the most part no one cares. This has been a struggle for over a year with me. I don't see this as mid-life crisis and find that one of my better pleasurs is driving my Shelby with the top down and six of my favorie CDs in the radio.

 

GG

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I’m 59 now and will be retiring from my present career next May (just before my 60th). I don’t have a choice (Civil Service/Military). I have options like finding and starting another career of even going back to college on my GI Bill (great benefits). I’m not sure what I want to do. A second career starting off at six-figures might be an option and hard to turn down if it happens. However the thought of all those pretty young college girls to look at in class all day intrigues me. However, my wife who is five years behind me in retiring doesn’t want me doing that or sitting home watching soap operas either.

 

I recently attended a retirement seminar and was told to continue my present life style; I would need to make 80% of my present income in retirement. If my home is paid for, then it drops to 60%. I’m fortunate to have seen this coming some years back and paid off my mortgage early. I’m going to enjoy life for a while but the thought of a new 2015 Shelby may drive me back to work.

 

I guess it really depends on the life style you want to maintain and what you’ve accumulated. Good Luck.

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I am glad I am not the only one that is giving this some thought. My plans are to be debt free other than our house payment in 2012 and with all other bills paid. My IRA is in good shape as I trimmed investments back to 70% bonds and 30% stocks for a steady stream of income.

 

You only live one time and then your gone and for the most part no one cares. This has been a struggle for over a year with me. I don't see this as mid-life crisis and find that one of my better pleasurs is driving my Shelby with the top down and six of my favorie CDs in the radio.

 

GG

 

If you can swing it do it, you won't regret it.

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Ben Franklin retired when he was 42. He decided that while he was not rich he had enough. That perspective inspired me to all but stop working at 60. We know that Mr Franklin contributed much after his retirement, including pressuring for severing of our ties with the Mother land and convincing France to help us do so. So there can be a good life after retirement.

 

I see people in their 70's who are all but done and people in their 80's who are still "crisp". You never know, so I figured I might as well have fun while I can still see and get around OK.

 

Nobody laid on their deathbed and wished they had spent a few more days in the office, as they say.

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After you factor in the money you will need to be happy, healthcare, transportation needs, money to cover all your bills, home upkeep, and a emergency fund....if you have that, pull the plug and make everyday a Saturday. :happy feet:

 

I think the key is to be debt free, have some newer cars, have a house that will not ding you to death, have a solid monthly income and have some money for health care needs.

 

 

 

I agree with Grabber but, IMHO you need at least 1.5M in the bank to pull the plug.

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I'm 65 now, and retired on my 63rd birthday. Here's what's worked for me and what I've learned in retirement.

 

1. Being realitively debt free is a MUST. Great piece of mind with no mortgage and car payments...PLUS if you are desperate down the road you can do a reverse mortgage.

2. DO NOT COUNT on your retirement investments paying 7% like the old days or even the new conservative 4% number needed to draw from for everyday living.

3. Most people like myself can't just do nothing. To enjoy retirement you need a plan. In my case I play golf in a group twice a week. I'm a reserve deputy sheriff and give the county two days a week of volunteer service. One day a week I'm a good husband, and then

there's some errands and travel...loved every minute past two years.

4. Tough age for us boomers. The kids and grandkids may need us, and the maybe your parents. Just put my mother in assisted living ($5,500 per month) Saw that and I bought long term care insurance. Another way of saying don't be surprised if retirement isn't much

cheaper than before.

5. You need to have health insurance in place prior to Medicare for both you and your spouse or risk bankruptcy.

6. Negotiate and minimize ALL of your expenses. For instance, when I let Sirius run out I had a decision to make...I don't need it, or accept their offer of next year at 50%. I knocked my cable bill down by 35% and cell bill by the same. NEGOTIATE and MINIMIZE!

7. Once you are out of the rat race, no more "keeping up with Joneses" Nobody cares what car you drive or are you wearing the latest fashions. Inside rooms on ships and bringing my own Diet Cokes on cruises works for me.

8. Subscribe to Kiplinger's retirement newsletter.

9. Consider a part time job for extra cash and too keep busy. I have a friend that "rangers" at a golf course for minimum wage and free golf.

10. Use a network-forum like this- or people like me to advise you...we can all learn from one another. I'd be happy to give you more than this .02 ...just PM me if you need more.

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My situation is a little more complex! I'm 56 and have a 11 year old daughter! :doh:

 

So, we are saving for her college AND retirement :sos:

 

We have a plan in place, however. I "plan" to retire at 65, however I'm also thinking that when that time comes, depending on how I feel, etc., I may just keep on workin' until I feel like retiring. In any event, our home is our only debt and we are on track to have that issue erased by that time.

 

My biggest fear for awhile now has been that one of us would lose our jobs. I forsee things beginning to get much better for our economy after 454 days, 18 hours, 49 minutes....

 

The No. 1 goal is to maintain health to the extent possible - but mother nature isn't always cooperative, as we know.

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I'm 65 now, and retired on my 63rd birthday. Here's what's worked for me and what I've learned in retirement.

 

1. Being realitively debt free is a MUST. Great piece of mind with no mortgage and car payments...PLUS if you are desperate down the road you can do a reverse mortgage.

2. DO NOT COUNT on your retirement investments paying 7% like the old days or even the new conservative 4% number needed to draw from for everyday living.

3. Most people like myself can't just do nothing. To enjoy retirement you need a plan. In my case I play golf in a group twice a week. I'm a reserve deputy sheriff and give the county two days a week of volunteer service. One day a week I'm a good husband, and then

there's some errands and travel...loved every minute past two years.

4. Tough age for us boomers. The kids and grandkids may need us, and the maybe your parents. Just put my mother in assisted living ($5,500 per month) Saw that and I bought long term care insurance. Another way of saying don't be surprised if retirement isn't much

cheaper than before.

5. You need to have health insurance in place prior to Medicare for both you and your spouse or risk bankruptcy.

6. Negotiate and minimize ALL of your expenses. For instance, when I let Sirius run out I had a decision to make...I don't need it, or accept their offer of next year at 50%. I knocked my cable bill down by 35% and cell bill by the same. NEGOTIATE and MINIMIZE!

7. Once you are out of the rat race, no more "keeping up with Joneses" Nobody cares what car you drive or are you wearing the latest fashions. Inside rooms on ships and bringing my own Diet Cokes on cruises works for me.

8. Subscribe to Kiplinger's retirement newsletter.

9. Consider a part time job for extra cash and too keep busy. I have a friend that "rangers" at a golf course for minimum wage and free golf.

10. Use a network-forum like this- or people like me to advise you...we can all learn from one another. I'd be happy to give you more than this .02 ...just PM me if you need more.

 

 

 

I forgot one VERY important item...Social Security

I'm not sure if I made a mistake drawing early (ballpark you lose about 7% for every year you draw early)

In my case I went a little early and really don't need it now. I estimate I'll lose a couple hundred a month by not waiting till full retirement (66 yrs)

However, it all depends on your guess on how you'll live. At the time I didn't care...Obama and all the idiots running/ruining the country pissed me off, so I said no income redistribution for me.

Bottom line...draw early at 62 and you lose 25%. - 66yrs = even - wait till age 70 and you pick up a 25% bonus.

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My plan is to take mine at 62. Since I may retire at 54, I will be counting on my pension alone as my monthly income. At 62 I figure I will be ready for a raise. :happy feet: My longtime service with the Pacific NW Carpenters and Joiners of America Union will help pay a portion of my health insurance. They will be giving me a credit of about 25% off my premium and I am also in the Carpenters large pool of members so they get a break on the coverage. Currently for a husband and wife to have the top of the line blue cross medical coverage and dental and eye glasses...it cost a retired carpenter about $700 a month to cover both husband and wife. If you want to create a yearly deductible on that of say 5K or 10K, then the monthly premium will go down accordingly.

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Lots of varied & good advice for sure

I'm currently 58 and our youngest just started college, so I plan to work at least 4 more years even though I will be eligible for maximum defined benefit retirement in ~2 years

I have a need to keep busy so in addition to my day job, I have taught night classes at the community college for the past 35 years which is something I really enjoy.

Plan to continue until I need to pass it along to someone younger. Just hope I recognize this when it is time.

Additionally, as time permits I help out on our family farm. Some days running the JD 450 bulldozer is as much fun as driving the SGT.

Thinking that if I retire in 4-5 years I will still look to do something else.

Finances definitely is part of the equation as others have made great points on all aspects of this area. Little to no debt, good cash flow from retirement, considered & covered health care costs, and perhaps some excess somewhat liquid assets to help your children when it makes sense

Social Security - if you look at the cash flow differences between 62 & 66 delaying to 66 it generally takes ~13 years to break even compared to starting at 62 given you would have constructive receipt of the funds for the 4 years prior to turning 66. If there were viable investment options for the SS $ and you didn't need it, then whatever the time value of the invested money would push the timeline past the baseline 13 years.

 

With all that said, there is merit to Rob's line:

I'm going to enjoy Saturdays....every day

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My quick answer is that I'd like to retire as soon as I can! Currently 49 and I have a two stage plan. The first stage is to pay off the mortgage (which will make me debt free) and "down shift" out of the rat race into a local job. i won't need to same income so I won't need much of a job. Then fully retire when the numbers look right....If I play my cards right, I should be able to execute on phase 1 in less than 5 years.....

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After you factor in the money you will need to be happy, healthcare, transportation needs, money to cover all your bills, home upkeep, and a emergency fund....if you have that, pull the plug and make everyday a Saturday. :happy feet:

 

I think the key is to be debt free, have some newer cars, have a house that will not ding you to death, have a solid monthly income and have some money for health care needs.

 

Well Rob you make some very good and short points! I can definately see where I have to go..... looks like I'll be selling my GT/SC in a few years, and most likely the house. Hopefully then we can relocate somewhere south of here where the cost of living is a little cheaper. I certainly have a lot to think about. :salute:

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Interesting thread, I just turned 40, but have been thinking more and more about this the past year or so, I think it is critical I plan now. I just moved and bought a new home with a 30 year mortgage, but have been paying extra every month to pay off in 20 years comfortably. Then I can sell, move somewhere more reasonable to live and have a ton of cash left over if needed. I give 7% to 401K, next raise I will make it 8%, that is the max I am allowed. I currently use my stock grants that come due each year, due to the move this years coming up are already used in advance. I have always used at least half to pay off my cars or other debt, besides cars and the house I am debt free at this point so I have to start looking at my stocks as kids education fund and retirement.

 

My income can change substantially based on what happens at work, but I am planning for it to stay about the same and if it goes up that will just be a bonus.

 

Right now I think 65 would be a good age, but as you know things could change quickly. At this point I enjoy work, it is a challenge, I would go crazy sitting at home every day.

 

The economy will turn, it is inevitable, probably not in the next few years though.

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Well Rob you make some very good and short points! I can definately see where I have to go..... looks like I'll be selling my GT/SC in a few years, and most likely the house. Hopefully then we can relocate somewhere south of here where the cost of living is a little cheaper. I certainly have a lot to think about. :salute:

 

 

You don't have to sell the old car and house as long as you are prepared for out of pocket costs during retirement. for example houses can be money pits as they get older. They might need to be re roofed, new furnace and AC, New wiring or plumbing and duct-work. It can all add up very quickly and if you are not prepared for it to hit, it could really set you back. If you were not planning to shell out the money for a new or semi new car....then one has to be prepared to be putting money into the car often. My logic is to have a provision in place that will somewhat minimize those expenses.

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Retirement is for old people. I don't think of my self as old yet. I still like to go to court and mix it up. I guess I'll know it when it happens.

 

Oh, I'm 61 in December.

 

Maybe having a wife 22 years my junior and a 15 year old son at home keeps me thinking about working. :)

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Here's a pic of my wife and me at one of my daughter's wedding last month (from a previous marriage). We've been together for 18 years. I guess I'll go ahead and keep her:

 

.......................

 

 

Smart move. You being a lawyer should know best the cost of a failed marriage (LOL, kidding of ourse)

Lovely wife too, I thought at first it was your daughter (no seriously, ha ha).

 

There are many factors before deciding on retirement. Unless it's a forced issue and your health is good plus you enjoy what you're doing, you should continue to be a productive member of society. Retirement is definitely something you should plan on and not be force to do.

 

The kids are gone, the college loans paid off, the mortage is paid off and we've got about 10 years before my three granddaughters become teenagers and expensive again. It's time to retire and enjoy life for a while at 60 in about in 6 months.

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If my 101k was doing better I'd pull the plug.

 

 

Not sure what a "101K" is but my 401K is now actually a 100.25 K Plan at present. Is your's similar? (LOL)

 

Who am I kidding? People think I'm retired now and I just show up at work everyday to piss them off. (J/K , I got 6 months to go) :hysterical:

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I solved this question by having my first child a month after I turned 20 and my last child after turning 40, with 2 kids in between.

 

I then helped it along by being self-employed since I was 29, and by taking plenty of time off of work to coach my kids in sports and make sure that family came first.

 

I then helped my oldest boy (now 29) buy a house, and at 49 I still have 3 kids (8, 11 and 15) at home.

 

In addition, since 2001 my wife has been a stay at home parent (by a combination of circumstance and her choice).

 

Last, I live in Claremont, California, a state and a city with among the highest taxes, utilities and cost of living (but it is a great place to live with great schools).

 

Good thing I am in a profession where I generally like what I do, because I am still 25-30 years or so from retirement by all usual standards.....

 

On the plus side, I have never had any intention to retire. I always thought I would scale get back and get more choosy as I got older, but I always figured that I would be practicing law for as long as I was capable of doing so, which hopefully will be right up to the end.

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I plan to Retire a few Days after I win the Lottery. The plan is to go to work one or two more days after and piss off my Boss bad enough to Fire me so I get that 2 Weeks Severance Pay........ :happy feet:

 

Honestly......Retireing scares the hell out of me. I don't think I will be able to. It's "Pay Check to Pay Check" until one of my side Businesses takes off and helps out.

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Meeting with my financial planner on November 8 to run the numbers and see where I am. Looking at a 3% COLA in January. Trying to figure out if pension plus IRA dividends = retirement.

 

Tonight Barbie and I had the top down, dropped our daughter at choir and had dinner at our favorite cafeteria. I loaded my best hits from Cher CD and started driving down the interstate. We came up behind a local GT 500 and depressed the excellerator slightly to let him know I was next to him. The weather is absolutely perfect and it would be so nice to not have to work all the time.

 

My favorite time of year, nice weather with stars out, not too hot or cold.

 

GG

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