Retirement: When would you like to retire? Do you have a plan to get there?

[Nick87]

What does this mean?????

My post was tongue in cheek of course. If it weren't for a pension and insurance while working construction here, there'd be little reason to stay. I get that styff but you guys out that way get elk tags, mountains,fishing etc etc. You're winning.

 

[HandgunHunter]

At 41….wasn’t planned but medically forced.

Good news is….I have been able to focus on my problems and not a business as well….so hunting, fishing, and backpacking can continue.

 

[Howie]

Been off 18 yrs.

A sage told me "when ya start talkin' bout retiring, you already have".

Go when you wanna, make extra money doin what you wanna if ya need and truly stop when you wanna. Enjoy your life within your means.

Enjoy your life, don't be a slave to it.

All you alleged english teachers out there, bite me! Life's too short.

 

[BearFoot]

With my youngest being 5 years away from graduating high school, I’ve been thinking more about retirement lately. I’ve always worked more than one job and never seem to have enough time to hunt and travel. I’d like to do more of both before I’m too old to enjoy it. Curious if anyone has a plan to retire early? If so, how do you plan on making it happen? For those who have done it, how did you make it happen and are you enjoying it.

Made great bucks in the construction trades, started a business and expanded over the years. Mrs. Bearfoot says I've retired but didn't tell anyone. #1 in business, is deliver more than you proclaim. Satisfy each complaint. Good people are to be rewarded. Hunting season is near!

 

[hank4elk]

14 yrs out.
Rewarded with Rio sitting next to me looking out the open door after our 1st monsoon downpour.
Watched over 100 cows and calves come out of the trees and spread out in the valley bottom.
Better than any video.
I've got a tag for fall.
One day at a time.

 

[IDFireLass]

Retirement is great. Was totally burned out with the job. Retired 4 years ago at 61.
But one thing non of you are talking about is what is your retirement plan?
I mean what have you figured out what you want to do with your days/years?
We made a game plan and are sticking to it pretty much. Finding out that there isn't enough hours to most of my days. We don't travel. Did way too much of that in our younger days. Don't like to drive that much anymore. Don't trust most people and can't afford motels.
Live in an area that we'll never fully discover everything.
We garden big time and can as much as we can. We hunt for most of our meat.
You need to find the place you want to live and have the place paid for is one of the big issues.
If you plan on retiring early with no real game plan other than to travel and travel you're going to get bored and run out of money.

 

[Nameless Range]

I do not dare want to start a discussion about healthcare, but I listened to this podcast this morning and the guest, who is an economist from MIT, laid this stat out, which made me think about how a lot of folks probably don't incorporate large healthcare costs into their retirement budgeting.

"1/4 of the people on Medicare spend more than 1/4 of all their disposable income on healthcare."

Just thought that was interesting.

390 | Amy Finkelstein: How to Tear Down the Broken Healthcare System

Podcast Episode · The Realignment · 07/25/2023 · 59m

podcasts.apple.com

 

[MNElkNut]

I would like to know how common it is to run out of money in retirement. We all hear about the people who wake up dead some morning and never get to experience retirement, but how about the opposite? Does anyone know about someone who had to go back to work because the nest egg was too small?

 

[Stone_Ice_1]

I would like to know how common it is to run out of money in retirement. We all hear about the people who wake up dead some morning and never get to experience retirement, but how about the opposite? Does anyone know about someone who had to go back to work because the nest egg was too small?

I know a few that did exactly this. One guy un-retired, came back to work, worked for 5 years so he was vested and had more retirement income. Retired a 2nd time, came back in to visit us about a month after his 2nd retirement and had just found out he had a form of leukemia. He died within the next month. So after working for 5 extra years so he could afford to retire, passed away 2 months after finally being able to.

 

[mtmiller]

45 months to go as of today. Love my job, but love other things more.

I run into lots of other hobby photographers, mostly retired, while I am out snapping pics. Not one has told me working was more fun than being retired.

Life is great now, but I would love to have that "everyday is a Saturday" gig.

 

[Steiny77]

I would like to know how common it is to run out of money in retirement. We all hear about the people who wake up dead some morning and never get to experience retirement, but how about the opposite? Does anyone know about someone who had to go back to work because the nest egg was too small?

My dad (now 93) talks about a lot of friends and acquaintances that went through this.
Retire prematurely, living big and large, second vacation homes, extensive travel, new cars, golf memberships, dining & partying, etc. then live a lot longer than they had saved for and wind up in their original Midwest home with a reverse mortgage, getting by only on social security.

 

[Irrelevant]

I would like to know how common it is to run out of money in retirement. We all hear about the people who wake up dead some morning and never get to experience retirement, but how about the opposite? Does anyone know about someone who had to go back to work because the nest egg was too small?

Absolutely happens. My grandparents had worked up to a level of generational changing land assets when they retired. But they rolled snake eyes on health and healthcare and my Mom had to slowly sell parcel after parcel after parcel. Technically they didn't run out... my grandma was 2 months shy of broke when she passed.

 

[Southern Elk]

I do not dare want to start a discussion about healthcare, but I listened to this podcast this morning and the guest, who is an economist from MIT, laid this stat out, which made me think about how a lot of folks probably don't incorporate large healthcare costs into their retirement budgeting.

"1/4 of the people on Medicare spend more than 1/4 of all their disposable income on healthcare."

Just thought that was interesting.

390 | Amy Finkelstein: How to Tear Down the Broken Healthcare System

Podcast Episode · The Realignment · 07/25/2023 · 59m

podcasts.apple.com

Isn’t a lifetime of chicken fried steaks worth 1/4 of your disposable income?

 

[Nameless Range]

Isn’t a lifetime of chicken fried steaks worth 1/4 of your disposable income?

 

[mdhunter61]

Are most people assuming they’ll need about 75-80% of their peak years annual income to live comfortably and of similar lifestyle in retirement? That’s what the fininacial websites seem to state.

I think those models assume that you're burning most of that peak year income every year that you're earning it. For about the last 10-15 years before I retired at 58, I was maxing out my 401k contributions, and still saving a good chunk of money in addition to that. I've been retired about 3.5 years now, am doing well on about 33% of my peak year earnings amount, and we have been taking three 10-12 day trips per year that involve flying somewhere. If things keep going approximately as they are, my money will last past my 90th birthday, and no one has promised me that I'll live that long.

And I wasn't being a miser while I was working, most of my hobbies (hunting, fishing, golf, cycling) involve a lot more time than money, if you don't fall into the gotta-have-the-latest trap. I rode my road bicycle for 28 years before getting a new one after I retired. My golf clubs are about 10 years old, and the last rifle I bought for hunting was in 2005. They work just as well as the latest and greatest, and I saved all that money not buying new stuff. Now the "don't buy stuff you don't REALLY want" gene is strongly ingrained, and it's a pretty smooth road at the moment.

 

[mdhunter61]

I think those models assume that you're burning most of that peak year income every year that you're earning it. For about the last 10-15 years before I retired at 58, I was maxing out my 401k contributions, and still saving a good chunk of money in addition to that. I've been retired about 3.5 years now, am doing well on about 33% of my peak year earnings amount, and we have been taking three 10-12 day trips per year that involve flying somewhere. If things keep going approximately as they are, my money will last past my 90th birthday, and no one has promised me that I'll live that long.

And I wasn't being a miser while I was working, most of my hobbies (hunting, fishing, golf, cycling) involve a lot more time than money, if you don't fall into the gotta-have-the-latest trap. I rode my road bicycle for 28 years before getting a new one after I retired. My golf clubs are about 10 years old, and the last rifle I bought for hunting was in 2005. They work just as well as the latest and greatest, and I saved all that money not buying new stuff. Now the "don't buy stuff you don't REALLY want" gene is strongly ingrained, and it's a pretty smooth road at the moment.

I should have added that I wasn't depriving myself of much while I was saving all of this. During the last 15 -18 years of my career I did 12-14 remote Alaska hunts via bushplane, played golf every weekend, and fished whenever i wanted to. One year the company I was working for went under, and we were let go with 6 weeks severance in early September. I had all of my financial ducks lined up (I was mid 40s at the time), so I took the entire fall off to hunt, and lined up a job the following February. Very thankful for how fortunate I have been through the years.

 

[arkelkhntr]

With my youngest being 5 years away from graduating high school, I’ve been thinking more about retirement lately. I’ve always worked more than one job and never seem to have enough time to hunt and travel. I’d like to do more of both before I’m too old to enjoy it. Curious if anyone has a plan to retire early? If so, how do you plan on making it happen? For those who have done it, how did you make it happen and are you enjoying it.

I retired at age 46, after 26 years in the Army. I then taught college for 10 years, then retired from that profession. No regrets at all. Obviously the biggest concern is having the finances to live as you did before retirement. Retirement is great. Go for it as soon as you can.

 

[Wind Gypsy]

My youngest will graduate HS when i'm 56 and I intend to be mostly retired by then.

 

[Pucky Freak]

I would like to know how common it is to run out of money in retirement. We all hear about the people who wake up dead some morning and never get to experience retirement, but how about the opposite? Does anyone know about someone who had to go back to work because the nest egg was too small?

All too common, unfortunately. Here’s some I know:

-Guy retired from professional career, realized he hadn’t saved enough to live on and returned to work. Couldn’t get back in his industry, so stuck working PT produce dept into his 70’s. Unhappy man.

-I know numerous coworkers who retire at first eligibility (age 55) and take a lump sum in lieu of their pension. There’s a lot of really foolish decisions one can make when overnight have hundreds of thousands of dollars in their bank account when they’re used to having just a few K’s. Most of these folks end up blowing it all within 2-3 years and have to return to work again.

-Relative + spouse in their mid 40’s got sucked in by the .com bubble/craze and put their entire nest egg in tech. Lost 90% of assets in the crash and instead of retiring 5 years early as hoped, ended up working 10 years extra than planned to rebuild nest egg.

-Another relative + spouse living large at height of housing bubble. Ready to transition into retirement around 2010, then kept bumping the date later and later, believing recession would be short-lived. Ended up having to work another 10 years.

-Another (close) family member retired from a long career at a single employer with a modest 401k. Relocated to another state (fun times) and lived off of savings for several years until the $ was all gone. Plan was to return home and have a second career and work through their 60’s. Except due to sudden health issues, never worked another day in their life! Now in their 80’s with sole income of SS, has been in poverty for 20 years. I see firsthand what a miserable frickin’ existence that is. You have few to no options for healthcare, housing, transportation, etc, constant stress and worry, and at the mercy of whatever family is willing to help you with. It’s very painful to watch.

I read about some of y’all living in retirement on a fraction of the income you had during peak earning years and I don’t get how you do it. Personally, I’m planning for way more than 100%. That’s probably overkill but I see how it can also go horribly wrong and it’s scary.

 

[BgFishnSD]

I retired at 54. Worked in the high end automotive service industry for 30 years, and worked my way to parts and service director.
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When I was 25, I told my (way more mature than me) girlfriend that I was GOING to retire at 50. She was from a VERY financially-responsible family, as her father was a financial planner. She told me I should meet with him to discuss how I could make it happen. I met with her father, and had an impactful experience that changed my life.
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Her father was casual. He asked me what age I wanted to retire. He asked how much money I had in the bank. He asked how much I made. He asked how much I save and spend from each paycheck. Ultimately, the answer I got was that at the rate I was going, I could retire when I was about 90. I scoffed and said that he was crazy, and he showed me the numbers, and the hard truth. He gave me a rough template for investment, but the basic ideology of saving as much as you can early enough, invest in your company's 401K as much as you can until it hurts, and then more...
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From that point on, I actually listened. I put the max into my 401K. I opened a Roth IRA when available. I'd party when I could, but forgot about the crap that sucked my money out (401K). I forgot about it, because it was ALREADY gone from my paycheck. That's part of the key. If you take the money from your paycheck after you've cashed it, to invest, it's WAY more difficult both emotionally, and because somehow you'll rationalize that you need it for bills.
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So, the best advice I can give is to talk to a "qualified" financial advisor. Do some research and find many ppl happy with their services. Make sure your investment firm uses an SEC-registered broker/dealer. I lost about 800k with a company that didn't do a Bernie Madoff; they just made bad decisions. I could have retired slightly early (and with way more money) if I had done my due diligence. But, I didn't know what I didn't know.
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You would think that after losing 800k, I'd still be way rich. I'm not (because I lost 800k) but I'm "comfortable." I know another guy that was with the same firm I was with that was 82, had ALL his investments with them, and had to go back to work to pay some bills.
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The moral is that you live and you learn. Take advice from someone like me that's done it, and do the research.
Most decent investment firms will run something called a "Monte Carlo" on you. It takes your income, savings, assets, and throws them into a long-term predictive model that is fairly accurate. They will know your social security, when you should take it, expected medical, etc. A qualified investment firm or advisor should be able to tell you what you can spend a year. If wisely invested, they usually recommend an annual deduction of around 4% of your total investments to start. The actual number you can spend is based on a complicated matrix of current investment diversification, at what age they think you should take social security, life expectancy, and a crapload of other input. It's why you hire them. The Monte Carlo even takes into account when you'll die. This is a normal process, and should be embraced because hey, everybody dies. It will tell you when you can retire based on desired annual income vs. investment portfolio.
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BUT, here's the the criteria. You need to figure out your living expenses. So, you are NOT going to want to do this. My recommendation is to marry someone who likes, or is amenable to, doing tha maths. You need to know how much your food is per year; how much your gas is per year; how much your utilities are per year; how much your f#cking underwear and clothes are per year. The more you drill it down, the more prepared you will be. The reason you do this is to know what you are spending a year just to live. It's probably more than you think, because the little crap adds up.
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NOBODY wants to hear or do this. But, if you want to be prepared, you will be. You will know all. I know all for my future life. I know I'm going to New Zealand next year to kill a big freaking red stag. But, I know what I can't do. And, believe it or not, that's great, because if I can't afford to go to Arizona to kill a giant Elk, I DO know how much quality beer I can consume while I'm not hunting.
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So, the takeaway is...
Plan NOW. Do research NOW. You are asking the right questions. Many don't. I have friends making beaucoup bucks that can't retire because they spend what they make. Big hat, no cattle.
Better to ask now, than to reflect back on woulda shoulda coulda...
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D!