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

[Irishman]

I had a goal of retiring at age 55. It probably wouldn't have happened, but the decision was made for me, the company I worked for got taken over, and my position was eliminated.
A few days after my job ended I adjusted to life after work, despite having worked for almost 30 years at that company. I was offered other jobs with different companies, but declined.
I don't regret being retired ever. It seems like there is never enough hours in the day to do everything I want to do.
You can plan and plan for the future, but there are no guarantees in life. No guarantee on how long you will live, how long you'll be in good physical or mental condition.
In your position, I'd be inclined to first cut back on the amount you work, and see how that goes.

 

[Mountain Man]

It was great to read everyone’s different viewpoints and that so many people are thinking this far ahead. I’m similar to many others in that I am 40 years old and plan to retire between 52-56. I’ll be retiring from the military next year so my family and I will have Tricare Select until my wife and I reach 65 at which point we will switch over to Medicare and Tricare for Life. Having this heath insurance covered without it being tied to full time employment is a huge help.

My kids college expenses will conclude when I am 56, which is why that is at the top end of my range. If I can swing it financially, I’d love to retire after they graduate high school. That said, it would be ideal if I could figure out a gig to work JAN-MAY during retirement so I’m free for fishing/hunting during the rest of the year. I feel like working those months will keep me busy during the off season and then create an even keener appreciation for the freedom and activities the remainder of the year.

This was a great thread topic. I’m excited just daydreaming about what the future might hold!

 

[Straight Arrow]

Medicare and Tricare for Life. Having this heath insurance covered without it being tied to full time employment is a huge help.

My wife and I can vouch for that! It's huge.

 

[Steiny77]

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.

Yep, the 401k gurus and financial planners at annual meetings always tell you to plan on needing 70% of what you are spending during your last working years.
100% Or more is a much better plan.

 

[glass eye]

Being self employed and poor, my plan is to live life to the fullest on as little as possible. Being debt free (except for my 2022 truck payments) is a huge plus.

 

[DouglasR]

You guys care to much about what other people think of you and worry too much.
“I’m lonesome but happy, rich but I’m broke”

 

[MThuntr]

I'm eligible to retire at 57 1/2 but a lot will depend on the economy. That will put me at 37-38 years of service. I have a pension, 401K, etc. I get to keep my insurance coverage so that's a major expense covered fairly inexpensively compared to the open market. Currently there is supplemental coverage to bridge the gap before social security kicks in too. I've met with an advisor they say I'm on track though my erroneous expenses (buying too much junk I don't really need and eating out too much) are higher than they should be. As long as I'm not too stupid with my money that will be plenty to keep me hunting as much as I want.

Honestly I'm not sure I want to fully retire. Depending on where I end up, I may consider working part-time for a sporting goods store or maybe work at a brewery to keep busy as well as prevent from becoming a hermit.

 

[mdhunter61]

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.

That's great planning on your part, saving more is better than less. As for living on way less than I made during my peak earning years, here's how I am doing it (just one guy's story, we all have variations on the theme) -

For about 20 years before I retired, I contributed the max each year to my 401k (I contributed to my 401k before that, but not the max annual amount allowed).

From 1996 - 2020, I lived in a townhome that was built new in 1996 for about $147k. I paid off my mortgage years early, so had no mortgage payment after that, and saved all of that money as opposed to spending on things.

Was married at 21, divorced at 25, no kids. That's hundreds of thousands of dollars that I didn't pay raising children. I am betting that every parent on this thread doesn't regret the money you're spent on your kids one iota, which is as it should be. I'm just saying I didn't incur those expenses, and I didn't squander money much after I turned 35 or so. I sent my Mom money every month for the last 15 years of her life, even during the period where I didn't have a job and was hunting all fall. My reserve funds took care of it during that timeframe.

For 20 years prior to retiring in 2020, I dated someone on the other coast (I was in MD, she was in CA). While the 5-6 trips each year to see her cost some coin, I'm betting it cost less than seeing her every week or every day. It also meant that when I retired, we sold two homes instead of one, so we had a nice war chest to buy a lot and build our home in Tennessee.

When I retired in 2020, I owned a 1994 Mazda B4000 small truck that I had bought for $7000 cash in 2001. That was my hunting, fishing, and fun vehicle. So no truck payments for 20 years, saved that money instead. Last year, I bought my post-retirement truck, a 2022 Toyota Tacoma. Paid for in cash that I had saved years ago, to buy a new truck when I retired.

My work vehicle was a 2009 Mazda6 that had been paid off since 2014. So no car payments after 2014. We are just this month trading it in for a new car, that will be paid for in cash that we set aside for this purpose years ago.

I had a really good job that in my peak earning years paid close to $200k annually when bonus was included. My current retirement draw is $60 gross per year.

With no car payments, a relatively small mortgage that we are paying off early, and no other outstanding debt, $50-54k a year ($60k after taxes) can go pretty far, especially since my girlfriend also brings money to the table. We have taken separate trips to California, Alaska, and Maine this year, and I have a caribou hunt upcoming in September in Alaska. The money for that has been saved since 2017 or so.

The key to ALL of this - control and understand your spending, and do not spend on whims or fancies. My employees got me $150 in Cabelas gift cards as a retirement gift - it took me 18 months to use them, simply because I couldn't think of a single thing that I really wanted or needed. I never buy anything the first time I think of it. If it keeps popping into my head, it's something I genuinely do want, and I get it. If it doesn't keep popping into my mind, it was a passing whim that would have been money wasted.

I look back now and think of the crap I spent money on between 22 and 35, and I shake my head.

Sorry for the log winded response. It really all comes down to understanding and controlling expenditures, at whatever level of income you are currently earning.

 

[mtmiller]

I've met with an advisor they say I'm on track though my erroneous expenses (buying too much junk I don't really need and eating out too much) are higher than they should be. As long as I'm not too stupid with my money that will be plenty to keep me hunting as much as I want.

Go have a couple f trophies and see what kind of hunts you will be able to afford.

 

[Irrelevant]

Was married at 21, divorced at 25, no kids. That's hundreds of thousands of dollars that I didn't pay raising children.

It now costs $310,000 to raise a child: "Something has to give"

The new estimate doesn't include the cost of sending a child to college. Americans are increasingly likely to say they'll never have kids.

www.cbsnews.com

...$620K!!! They're greedier than Uncle Sam! No wonder I'm poor.

 

[SAJ-99]

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?

It certainly happens, but no one brags about it on FB, so...

 

[NEW PA MT MN]

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 retired in 2010. Didn't think about or plan it. Business partner( brother) make a low ball offer and i wanted out. My wife was still working as a teacher. She was shocked and pissed when she came home that evening. . She retired a few years ago and things were great.
Vacations,travel,bought remote property in Alaska in 2015 and built a cabin. It was great.
I am not going up this summer for the only the second time because i had to go back to work.
Broke the Cardinal rule of the retired.
Dont give money to your kids.
And i pulled money out of the nest egg cause I bought another property in Alaska. Couldn't pass it up because of the price.
Its ok though. My house needs a lot of attention .
And Im setting up a band saw mill I bought to do some sawing here in PA and then take it up to Alaska in 2026 to build another cabin on my new property.
Also next year when I go up to my cabin in April I plan on staying 18 months until October of 2025.
My wife is still waffling on that last one.

 

[BgFishnSD]

That's great planning on your part, saving more is better than less. As for living on way less than I made during my peak earning years, here's how I am doing it (just one guy's story, we all have variations on the theme) -

For about 20 years before I retired, I contributed the max each year to my 401k (I contributed to my 401k before that, but not the max annual amount allowed).

From 1996 - 2020, I lived in a townhome that was built new in 1996 for about $147k. I paid off my mortgage years early, so had no mortgage payment after that, and saved all of that money as opposed to spending on things.

Was married at 21, divorced at 25, no kids. That's hundreds of thousands of dollars that I didn't pay raising children. I am betting that every parent on this thread doesn't regret the money you're spent on your kids one iota, which is as it should be. I'm just saying I didn't incur those expenses, and I didn't squander money much after I turned 35 or so. I sent my Mom money every month for the last 15 years of her life, even during the period where I didn't have a job and was hunting all fall. My reserve funds took care of it during that timeframe.

For 20 years prior to retiring in 2020, I dated someone on the other coast (I was in MD, she was in CA). While the 5-6 trips each year to see her cost some coin, I'm betting it cost less than seeing her every week or every day. It also meant that when I retired, we sold two homes instead of one, so we had a nice war chest to buy a lot and build our home in Tennessee.

When I retired in 2020, I owned a 1994 Mazda B4000 small truck that I had bought for $7000 cash in 2001. That was my hunting, fishing, and fun vehicle. So no truck payments for 20 years, saved that money instead. Last year, I bought my post-retirement truck, a 2022 Toyota Tacoma. Paid for in cash that I had saved years ago, to buy a new truck when I retired.

My work vehicle was a 2009 Mazda6 that had been paid off since 2014. So no car payments after 2014. We are just this month trading it in for a new car, that will be paid for in cash that we set aside for this purpose years ago.

I had a really good job that in my peak earning years paid close to $200k annually when bonus was included. My current retirement draw is $60 gross per year.

With no car payments, a relatively small mortgage that we are paying off early, and no other outstanding debt, $50-54k a year ($60k after taxes) can go pretty far, especially since my girlfriend also brings money to the table. We have taken separate trips to California, Alaska, and Maine this year, and I have a caribou hunt upcoming in September in Alaska. The money for that has been saved since 2017 or so.

The key to ALL of this - control and understand your spending, and do not spend on whims or fancies. My employees got me $150 in Cabelas gift cards as a retirement gift - it took me 18 months to use them, simply because I couldn't think of a single thing that I really wanted or needed. I never buy anything the first time I think of it. If it keeps popping into my head, it's something I genuinely do want, and I get it. If it doesn't keep popping into my mind, it was a passing whim that would have been money wasted.

I look back now and think of the crap I spent money on between 22 and 35, and I shake my head.

Sorry for the log winded response. It really all comes down to understanding and controlling expenditures, at whatever level of income you are currently earning.

This is a great point. I've come across so many ppl who buy new trucks every 5 years or so. If they knew how much they were losing in depreciation and insurance, they would probably reconsider. I still drive a 1999 Durango. I can do the repairs myself, so I don't necessarily recommend waiting that long. The longer you can wait, that money is growing exponentially, if invested wisely.

Mortgage renegotiation is another great way to save. If you have saved up some extra cash that's not invested, or you have extractable savings and your mortgage has a high interest rate, you should do something called "recasting." With the fed jacking the interest rate, currently may not be the best time. Wait for the rates to drop in a few years, then consult an investment agent before doing a recast. Basically, you are giving the bank holding your mortgage money towards the principal owed on the house, and not the interest. I lowered my mortgage from 2600/month to 1200 month. But, I did it before the fed started screwing the rates, so you will most likely need to wait for the rates to drop. Plan now, and save for it. It can shorten your time to payoff, AND lower your monthly payments.

 

[Brittany Chukarman]

I've retired from making money but I still ranch. I'm a month away from 70 and the work is getting harder and I want my summers free to do as I please. In the next year or two I can see myself selling the ranch and moving to town. I'll miss the hunting out the front door and the peace and quiet but won't miss the work.

 

[the nikster]

I hope the 20/30/40 year old crowd is eavesdropping on this thread…I will still retire soon but it could have been much more opulent if I had read this thread 30 years ago.

 

[mdhunter61]

It now costs $310,000 to raise a child: "Something has to give"

The new estimate doesn't include the cost of sending a child to college. Americans are increasingly likely to say they'll never have kids.

www.cbsnews.com

...$620K!!! They're greedier than Uncle Sam! No wonder I'm poor.

Maybe...but you have a wealth of memories and experience, that money can't compare to!

 

[JCS]

This is what I did. After 25 years I took a early retirement. I was in my mid 40's. My plan was to retire from the place I was working and take 5 years off and go backpacking or anything else I wanted to do, Then go back to work for a while. That was 16 years ago.

I dont have any kids and my wife was still working at the time. I put all the money I could away, ira, savings, etc. The only thing I didnt plan for was health insurance going up at such a huge rate. When I retired, insurance was 190.00 per month. 4 years later it was over 1000.00 a month.

So this is what has happened. After I retired i did all my hiking/hunting/anything else I wanted to do. 5 years later I took a job and worked full time about 4 months a year. Enough to pay for insurance/ vehicle and the such. I stlll work 4 months a year and have the rest off.

For me, you have to not spend on frivolous things. Get the smaller cable package, not the fastest internet, used vehicles, keep your old phone, etc. We also spend 3 months in arizona each winter to get out of the montana cold.

This is what worked for us. In a couple of years, ill be getting social security, my retirement check and my wifes IRA and her social security.

 

[BackofBeyond]

It now costs $310,000 to raise a child: "Something has to give"

The new estimate doesn't include the cost of sending a child to college. Americans are increasingly likely to say they'll never have kids.

www.cbsnews.com

...$620K!!! They're greedier than Uncle Sam! No wonder I'm poor.

Please tell me it gets better after they start school. The $1800/month in daycare suuuuuuuuuucks.

 

[Mountain Man]

Please tell me it gets better after they start school. The $1800/month in daycare suuuuuuuuuucks.

It definitely gets better, but is still expensive. Daycare is the worst though. I’m still in the middle ground before sports and cars start becoming part of the equation.

 

[Irrelevant]

Please tell me it gets better after they start school. The $1800/month in daycare suuuuuuuuuucks.

For a while...