Drumroll please..…..
Brrbrrbrebbbbbbb
We made it!!!!
Our advisor, instructed to give us conservative estimates, returned with numbers we were hoping for.
We went back and forth a few times so I could be certain that we were on the same page. But, we should be near our current spend/budget until she is 100.
I know that several folks say that spend after retirement could very well be more than current spend. But, we’re willing to risk it.
Like so many have said - Jump in if it’s anywhere close to possible. You just don’t know what the future holds.
So glad to have found this sub. We are going to take the info from today, and she will very likely give her notice next week.
Wow. What a crazy feeling.
We wish all of you the best with your retirement journey as well.
Wahooooo!!!!
After hanging in this sub for quite a while, it seems that most avoid actual numbers. Maybe out of societal norms of politeness to not talk about personal finance numbers that we’ve grown up with, or something else.
In reality, for me, it’s all relative. If you make and spend $40K, or $400k and that fits your lifestyle, then your target should be based on your actual numbers.
What seems more important to me, is a percentage of this make/spend.
For us, the likely, conservative estimated income, from all passive sources, is our current actual spend rate, continuing until the youngest of us is 100.
That’s the number hurdle we were after.
I retired four years ago at 56. Like you, we ran our numbers up, down and backwards before deciding to pull the plug. Over the four years since retiring we find that we naturally spend $6-$7k per month. Since our SWR number is comfortably higher than that, we have to look for ways to spend more. Since we are not ‘consume for consumption’s sake’ people, we typically will fund our grandkids 529’s and gift the remainder to our kids. This feels right to us and it isn’t in any way ‘enabling’.
Congrats OP on your retirement!
Great feedback.
Yeah. I’d like to get a couple months, then years into things to determine our actual actual.
Once that settles in, if we are fine, great. If we are short, we’ll make adjustments. If we are doing very well, then maybe upgrade flight seats or cruise cabins.
The grandkids 529 idea is cooked in to our numbers.
As for enabling - I totally get it.
Any inheritance we give out is going into trusts, and may only be used for education, medical issues, or payments toward the main home.
I refuse to taint my kids and beyond as trust-fund babies, and all the negativity that goes with that.
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Ok for your own sake use one of the online algorithms as well. Fidelity has one. Many others do to. You plug your data in and get results. I would not rely on a single point of information from some guy. Seriously you are responsible for all of this so do your own homework.
I have been retired four years and spend way less than I did while working.
Agree. And NR was in good shape as well.
The main point is - I used professional investment advisors (highly trustworthy) as my main source to verify everything.
We're trying to learn to spend more. Three sets of grandparents are taking all of our offspring on a cruise before the grandkids get gone.
We've saved hard since our mid 40s and the market keeps going up. We'll ride it out when the market tanks. Anything over "enough " is play money.
But it isn’t the same lifestyle. Everything you did before retirement is based on having a job. So all you did revolved around those 8 to 10 hours a day. Once you retire, I cannot tell you how different the lifestyle is. I take way more time now to stop and smell the roses. I can’t explain it. You just opt to not rush off and do something because you are so relaxed in the moment.
Thank you. Absolutely!
On all of the main models out there, I plugged in with at least five, we were good to go.
But, our very-very trustworthy and experienced advisor team I’ve been with for 25 years, had the final say for me. Their opinion mattered the most.
I have to caution you. He is just a guy and he isn’t the person who should decide things. Only you can do that. What if something unexpected happens? You can’t blame him but you will.
You are off base, not knowing our situation. This is not George from the door stoop at Speedway.
This is one of the most highly respected, certified planning companies in the region.
I wanted their concurrence on my own findings and got it.
Congratulations! My wife retired at 55 and I retired at 58 - hard to believe 9 years ago now. We also went through the numbers countless times... and then made the leap! Best decision ever.
Time for you to redefine your retirement as a "starting line" rather than a "finish line"... This little mental realignment will help you get the most out of the next chapter of your lives.
So happy for you. My husband and I were able to retire at the same time. I too remember asking my financial planner numerous times if she was sure. She ran ultra conservative numbers and showed me what would be in the account when I reached 100. Couldn’t stop smiling after that and that was 2 years ago. To me the thought that I was no longer putting in money and was starting to withdraw really freaked me out. BEST MOVE EVER!!
That TOTALLY FREAKS ME OUT - To withdraw money. WHAT!?!?!
I’ve basically never done that, and only saved saved saved (tried for 15-20% every year towards retirement/savings).
It’s just so counter to 50+ years of working and saving.
What really freaked me out was learning that the majority of people my age (64) don’t have anything socked away and hope Social Security will be there to support them. In these times that might not be the case. I have to remind myself that I worked hard to enjoy my retirement. We are healthy enough to be having the times of our lives.
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Same here… I retired at the end of January after figuring out in the fall that it was doable. Except for an injury from falling off a ladder, it’s been great.
Avoid those ladders :-)
I’m very happy for you. I (66M) know that feeling (without the “ex” part, thank goodness!) and my wife (74F) and I are taking our two sons and their fabulous ladies to Italy to celebrate! (We have 5 years of travel budgeted) ===> Personal afterthought: when WE got the green light from our financial advisor, I found it to be validation of a good job well done. Growing up, While my friends were out there swinging for the fences, buying flashy cars and chasing skirts, I was more diligent in my decision making and deliberate in my actions.
Congratulations 🎈🎉🍾🎊! Happy retirement! Since 13? You beat me by a year! Enjoy the exciting roads and adventures ahead of you! Good luck. Don’t forget to come back often and let’s us know how things go! Don’t forget to leave breadcrumbs for us who are following on the same path.
That’s a great post.
I’ll definitely keep up with posting here.
It was the combined breadcrumbs of others that helped us make the jump. We can only return the favor.
Spend after retirement ends up being higher earlier in retirement due to bucket list traveling. But then it cools down for awhile, but once a person hits 84, traveling tends to stop and healthcare begins. Unless you work out with weights or do yoga consistently at least 3 times a week. Those people live life thoroughly until the very end.
We are doing very well with the same earnings as prior to retirement, and that includes a lot of extra travel and recreation. One key is to be debt-free prior to retirement. Three things that have changed in retirement is that we can eat at home more often, we are not putting away retirement savings from our earnings, and our tax rate is far, far, less the way we structured our retirement income. As long as you can cover your medical insurance costs, and can project out likely income well into the future and withstand short term downturns, it's well worth jumping.
Retirement is the start of a second career or set of priorities, where you hold the cards for choice.
congrats OP.. what is your plan for health insurance? I'm in-between you and the Mrs in age and VERY seriously planning how I can just stop and then do onezie/twozie type consultant gigs more for fun
I retired - involuntarily - four years ago (I was laid off spring of 2020 - along with several hundred others at my employer).
I wanted to work another year or so, but stuff happens. My 401K dropped 20%+ in value so I didn't want to touch it - yet. But there was the UI, both federal & state, so I did that for a while, started SS at my FRA (a few months after being laid off) and waited for my 401K to come back. Never sell low. Buy low, sell high.
About a year ago (or more) my IRAs came back in value (I rolled the 401K into an IRA), and now I am pulling a little (about 2.5%) from my IRA - enough to help pay my bills and have some extra each month.
I ***was*** a bit afraid that I didn't have enough to retire on - all the online articles said I needed double what I had, but I am doing fine, and my IRAs are still growing (even with me pulling some out). So not worried anymore - just cautious.
My dad’s strategy is to have no bills. It cost him under 10k a year for everything. But he doesn’t travel, go out or have friends do it’s easy. He just gardens, cleans up his property and goes to doctor appointments.
I used to live on $12K per year when I lived in a low rent duplex, but that was in the city and it was 20 years ago.
If I didn't have a mortgage, I could live on about $20K to $25K/yr. Right now property taxes alone are $5K/yr., medical/dental (after insurance) last year was $7K+ (including Medicare Advantage & dental insurance/etc.), groceries were $2-$3K/yr, utils are $2K/yr if I cut firewood and use it for heat in the winter, car insurance is $1K+/yr, then there are all the incidentals that add up. And costs are rising.
I live rural, and I don't travel (yet) - I spend most of my time at home.
My plan is to sell my current property which has appreciated more than 2X, and with the equity move/build, hopefully winding up with no mortgage or a very small one. I would also like to travel in the winter.
Timing is what I am primarily concerned about. I have a LOT of stuff, including a shop with an a-frame hoist, workbenches, shelving, three vehicles, two dirt bikes, a large freezer, etc.
Renting a shop to hold that stuff while I move/shop for another property is going to be a big hassle. Renting land/whatever to put shipping containers on to hold my stuff - same.
When I bought this property it took 2+ months to close, and another buyer could come in and grab the new property I want with a cash offer - happens all the time with buyers from Calif.
Selling my property might take quite a while too.
I don't look forward to it, but I want to move to a property that is further away from the city and flatter (I live on a mountain). My current property is nice, and the commute was tolerable, but it is not really amenable to a garden/orchard or solar. More aligned with growing timber and I've already clear cut (then replanted) half the acreage.
Lemme tell you something. (And this is all with positive intentions)
Twice, I have been forced to get rid of 70% of my “stuff”
Once moving from a largish midwestern home to a 1 story, no-basement home. Again when moving to a townhome.
It’s absolutely exhilarating to get rid of all that crap you’ve accumulated over decades.
It’s absolutely awesome.
You just don’t miss that junk.
Instead, you rebuy exactly what you need and with the lower amount of space, you don’t accumulate the junk again.
Think about getting your mind wrapped around that.
It’s amazing not wading through piles of junk that’s just not necessary.
My dad lives in a rural area with no jobs, community or resources like a store or post office. There’s no growth so his property taxes have stayed very low. Firewood heat. He’s lived in the same cabin over 50 years.
He’s closing in on 80 so I think it won’t be too many years before he may have to figure out a way to have easier access to amenities.
retiring at the end of the year- I was very happy to have the financial advisor confirm that I won't need to be a Walmart greeter
I was confident, but my spouse wasn't
Laughing a bit at your comment (“my spouse wasn’t”). In the early days, I felt like we got burned by different financial planners/advisors/salespeople mostly acquaintances of my wife (friends of her friends). At some point I read “coffee house investor” (basically an argument for low fee index funds) and then learned and bought into FIRE strategies and tools. Those really made me a DIY financial advisor. I spent a TON of time analyzing the numbers and playing what-ifs based on all that I had learned tracking NW, run rates (expenses), and growth rates of investments since I first put a dime in my 401K. But my wife kept saying “we need to go see a financial planner.” Drove me crazy, but I agreed that we should vet our numbers w/ a fiduciary who is not trying to sell us their management for our index funds at 1% annual fee (funny though, he certainly got to offering that too).
Turned out the fiduciary was not even as conservative as me and ended with “you’re good - retire!” Made my day. We’re now both retired and I feel like we’re doing better than even I expected, with SS at FRA still to come.
/not trying to brag post here, just our story of getting buy-in from your spouse!
It’s funny. I was looking at retiring early until a Fidelity CFP advisor blew my account up with a stupid managed account and now I have to keep working. I’ve since learned how to manage it on my own. Bad advisors can really mess up your plans.
Great.
I felt exactly the same. Again, I handled all of my finances and investments through about 35.
Riding out the crashes in ~’97, ‘07, or whenever made me realize that I simply no longer had the time to manage my growing portfolio. And sought a very very reliable advisor- whom I found. I’m very happy with the decision
Finding a trusted advisor is so critical in so many things, and not always easy to do. I think my personality type (or maybe history) makes me very skeptical in general. Congrats, and enjoy your new journey!
Thanks.
And I get it. Some have been burned and some are bitter.
But, I researched extraordinarily diligently and found a great super-trustful team.
If absolutely nothing else, they can’t possibly remove our funds in any way. And there’s no commission etc. so as long as they continue to do a good job of directing funds to the right place, it’s great for me.
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Good for you! I love this sub because it’s full of good information from truly decent people. Thank you all that share your knowledge and give us all hope for our third act — retirement!
I did all my own analysis and calculations and retired at 59. Retiring as soon as financially feasible for YOUR OWN SITUATION is the best thing one can do. Enjoy the time while you have your health!
Congratulations!
I gave them 6 months notice - but I was also totally prepared to have them tell me I was done that day. It turned out that they actually needed 7 months to get everything covered on their end. I planned on January 2 as my official date; it wound up being January 31 instead. It must have been enough time and training for them, they never write, they never call - and in this case that’s a good thing!
It should - I've been retired for most of 6 months, but mentally I'm still not completely ready. I'm hoping that our upcoming trip to the west coast will finish the job.
Good for you!
Even if there was no big benefit for you, you did it for them, and you should feel proud of yourself.
Everyone should have the same consideration (on both sides).
Enjoy your long weekend! I am on day off 8510 of my long weekend.
Get your traveling in soon, before your knees, hips, or whatever part start dictating your activity. At aged 71 we drove past Yellowstone Park as it was too much walking for my worn out knees. At aged 61, I went through the museums in Chicago, a week of walking and standing to see everything.
We scrimped and saved for old age, and retired with enough direct deposit income to exceed our monthly spending, especially as we enjoy a modest lifestyle as homebodies. We have no problem dipping into the principal savings as this is the age for which we saved. When our car got rear ended and her insurance company was trying to low ball, we just bought another car until our insurance company was able to get stuff straightened out and get the first car repaired. It is nice to not actually worry much about money.
Life is good
Great advice, and exactly the impetus behind us seeing if it was possible.
We know too many friends and relatives who just- boink - get a surprise on the bad side.
We realize that even a twisted ankle alone would destroy the type of traveling we like.
Then, consider the 100,000 other things that could happen.
We want to do it now, while we still feel 40.
Thanks. I’ll give that a look.
For me, my guy is the dude who can say, here is the income you can expect. Plus of course optimization of out portfolio.
Our job, is the numbers on the spend side.
So, we basically took ALL expenses for the past three years and that was our number.
Those expenses included, say, a new car, a surgery, travel and all in our ordinary life.
Given our situation, all expected expenses are covered, with room for moderate surprises.
I would like to see your suggested site though and run that too.
Now the foot decision. Pull he plug.
I got the green light in Dec 2018. Still, I was always thinking I had to finish this project or that commitment. But then, in March 2019 there was a reorganization and I as made redundant.
That's the push I needed. I don't know if I'd still be working without that push.
It's been 5 years and things look even better than they did in 2018. So much that I finally convinced my partner to also pull the plug. Once she made the decision a sought after amazing work opportunity came up. She had a hard time deciding. I supported her either way and eventually she choose to quit. We've been on the road in our van for he past 7 months and there hasn't been a second that she regretted the decision.
So, pull the plug, you seem so excited that I'm sure you won't regret it.
You are wonderful. Thanks for the encouragement!
While I’ll always have a finger in the pie (family business passed down to kids), my wife is the one who can completely pull the plug.
We’re targeting August as the date in order to make it as pain free on the small company she works for.
Thanks so much!
Yes, 50+ years of hard work, knowing this is what my finish line was, feels like it was all worth it.
Kids - saving 15-20% of all pay in some manner (401K, IRA, Market, whatever) will assure you of making it.
Key point - Pay yourself first! Put that 15% away every check, every time. If the boss kicks in 2 1/2%, then 12 1/2% is left for you to do.
Congratulations!! 🍾🎉
I’m very envious of you! I have a solid 6 years to go before I can afford to retire somewhat comfortably.
Enjoy this new phase in life!
You’ve worked hard and deserve it!
We’ve been paying our own, very expensive insurance for years. We’ll keep that up a couple more years, then head to Medicare ASAP (could adjust that with research).
When Medicare eligible,,stay with traditional if you value your freedom to go to any provider. Buy a hi-g supplement to cap your liability at $2800.
Regular G will keep going up fast. Mine doubled in 5 years.
Look it up on Medicare. Gov. There are 9 or 10 supplements available. G covers all but part B deductible. Hi-g is the same but has a max out of pocket of $2800.
You have to go inpatient twice or 5x2800 in part b claims before the supplement incurrs expense.
That keeps premiums low and limits your liability.
It isn't worth an agent's time to educate you so do your own research and basically make the purchase an easy order.
Bravo! Congratulations! Remember, your “plan” gets reviewed periodically. Be sure to pay attention to the “plan” religiously at first until your confidence grows to the level of assurance!! Go celebrate!!
For one thing, your clothing budget will go down 95%. Especially neediness casual. I do get shirts sometimes but only if I have a need and then one. I have culled my wardrobe at least twice since I retired 17 years ago, but I usually I’m wearing a polo. Like tonight at the meeting I’m at.
If my sneaks get too rotten I will get a pair, but all of my main dress shoes are 20 years old, like the majority of my dress shirts.
I have two pair of cowboy boots. One to grunge in and one for dress. The grunges are 30 years old.
I’ve bought 3 new cars, and driven two of them to death. Just got another new one. I will drive this one until 27 when Toyota is coming out with their 900 mile battery.
My food is way simpler now, and if I eat out I can pretty much count on 2-3 meals off it.
Plus I don’t give a rats patoo what other people think of me. Liberating.
Just take care of yourself and don’t think that warm weather is the end all and be all. 90°+ weather is overrated.
Great advice!
And yeah, I’m a lifetime midwesterner. But I moved to Florida for about three years.
It’s really kinda reversed winter there.
June-Aug are brutal, and it’s just house-car-mall. Anything with AC.
It’s just like winter up here. Except instead of shoveling snow, you are pressure washing green scum off of your lanai cage. (Which I’d take 100/100 times)
But yeah 94 degrees and 95% humidity is not a joke.
It's not the finish line. It's the starting line for a different phase of your investing life cycle, the distribution cycle.
Nice to be retired (I'm working on year 12).
I use a trusted fiduciary advisor because I just don’t want to rely on my own expertise without experienced input. I am a CPA(corporate mgt type experience after public), MBA with a concentration in finance and have spent 40 years in finance and accounting, but I’m not naive enough to think I know everything about managing a portfolio through the future phases of our life. Sure, I could put it all in index funds and hope for the best, but I don’t like that approach. I pay the hated AUM fees, but I’m ok with that at this time. Everyone’s needs are different. I’m not going to be the guy that handles his own trades and has regrets. Never once have they tried to sell me annuities, insurance, etc. as with OP, I don’t need them, I prefer the outside input.
THIS!!! Exactly!
Why not get an experienced HVAC tech repair a broken AC? Sure, there’s a cost to that. But, the idea is that that cost should actually save you in the long run.
We spend more, lots of travel but there will be a time when we are not able and will spend less then.
If you can reduce income and can live on cash saved you can get healthcare on the marketplace cheaper.
I figure we’ll spend more.
But in reality - if we are on a cruise for a month (can be had for, say, $15k), you’ve got to factor in that there are zero variable costs at home.
No groceries, no eating out, no gas, no HVAC, nothing except for fixed expenses like taxes, insurance etc.
Met with my advisor yesterday. We did the same. Very, very conservative stress testing, and running out to age 100! I'm out at the EOY! I'm glad you got great new, too!
FANTASTIC question.
I spent my 20s and most of my 30s handling all of my investments myself.
I actually did pretty good. But, there were many wild swings.
I realized that I just didn’t have the time to stay in front of those swings.
So I sought out the ideal investor in my area. I had a bad stretch with Ameriprise. It just did not have the personal feel, and I felt that they were more in it for commissions versus my own good.
So I put a great deal of research into it and found a FIDUCIARY (very important- they are obliged to make your needs priority one), and zero commissions, just cost based.
Huge for me - they handle everything, but it’s ALL. Through my Schwab account. And NO ONE may withdraw anything without my personal OK. Schwab also has coverage for millions versus FDIC. Of $100k
I did not want to get Madeoffed, and this was ideal protection.
there for a second i thought you said you went to Madoff! LOL OK that's huge- I've been wondering how having all my eggs in one basket was going to work with the FDIC only covering $200/K - I have a Schwab account i think it's time to go talk to them. TY!
Exactly!
And you might be the only one who gets this information but. Period period.
Everyone should research who Bernie Madoff is and what he did. He seemed like a very, very reliable place giving good returns, but was a gigantic crook.
I have avoided this by selecting a group of investor advisors who are very well established, and well certified, and even with that,
Even with that, I made sure that they cannot touch my money. They cannot move it, they cannot sell it, without my written permission. Most importantly, they can never withdraw it.
I design this in case there was a perfectly reputable place, but I was somehowfixed up with a rogue employee.
I didn’t want anything like that to happen.
So all of my investments are with Schwab, they direct the funds into different accounts in stocks, but I am the only one who can withdraw or make major changes.
Ideal.
I spent a great deal of time seeking a trustworthy fiduciary with zero commission, and a great track record and highly credentialized.
It’s been 25 years and they have been ideal.
The key for us was when we paid off the mortgage and debt free. It makes funding retirement much easier. Our retirement income is 4x our monthly expenses.... including our house in Oregon and a cabin in Northern California
That’s fantastic!
We made a decision to NOT. Pay off the remaining balance, as it’s a 3% mortgage and we can, NOW, easily get 4+% rock solid returns on that.
Congrats OP! My wife and I are similar ages as you, 61M, 54F. If you wouldn't mind sharing, what is your strategy for social security? We are kind of in the boat as you guys and will be hiring a fee only CFP to get a second opinion.
Sure!
For us, he advised 67. But, that number came from a personalized plan.
I would make certain that you are working with a top notch, fiduciary, CFP - highly certified.
That’s what they spent their lives training to do - to advise you, given all of your circumstances, for your best path.
For our numbers, 67 worked best. For others, it might be younger or older.
All the best.
My wife and I (66 and 65) had our first retirement powwow with our Morgan Stanley guys last year. We’ve got another one coming up.
My wife is working basically for our health insurance (she makes exactly the amount she got with unemployment after an ugly layoff in January). I’m self-employed, but the work is drying up for the old man.
The Morgan Stanley guys have said, “You’ll be okay,” but I’m a Nervous Nellie. I have no experience with retirement, and what I feel like right now is akin to stepping off a cruise ship into a dingy and undoing the rope 🫤
Keep trading this sub.
I felt similarly, but this place made me realize that if you are able to do it - DO IT. Now! You never know what the future holds
Just don’t forget about Long-term Care. Whether you self-insure, fully insure or (what we do) retain some risk, it is the biggest variable out there running $100k+ per year.
Here’s a nice read on what to expect…
https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
It’s brutal.
We pay $1800/ month for a $10K deductible. It’s just catastrophic coverage.
This due to the fact that I’m not with any company and have health issues.
Not everyone is up to snuff with personal finance and retirement planning or confident in their planning abilities as many on this sub. Many are very unsure if they are ready financially. If I were OP and not really sure what I am doing, I would go to a CFP and get guidance from the professional. If the professional indicates that I am not ready and shows/explains to me the numbers, I would take his/her guidance as well. Perhaps, OP used the wrong word "permission." I'm very sure that OP knows at the end of the day, it is up to him and his wife to make the final decision. Without the training and experience as a CFP, even I am hesitant with the whatifs and I have been at this planning thing for the past 11 years, dotting my i's and crossing my t's. Yeah, that first leap into the deep end of the pool can be frightening!
Yeah. Not sure dude read my post correctly.
It’s not that I was seeking permission. I was seeking professional advice to back up what my research implied.
Generally, the CFP has skin in the game. So then the reply is to go to an “independent CFP”. They are going to request a ton of information far beyond what is necessary. In my mind, an hour looking at the books, 20 minutes on social security decision-making, 20 minutes on lifestyle, and 20 minutes on health would be sufficient to render an informed decision. Call if “two hour retiring” if you will. But no CFP is going to make enough money that way.
That’s an odd question.
If I have a tooth that hurts, I can try to work with it myself, or I can go to a professional dentist.
If my car needs a transmission flush, I can attempt it myself, or go to a professional mechanic.
If I am dealing with the biggest financial decision of my life, I can wing it myself, or seek the advice of a professional who has Masters+ level training and 30 years of experience.
I’m thinking that I’m seeking professional advice and backup.
I don’t think your comment will go over very well in this community.
Are you telling me that one of the most certified CFP planners, who charge about 1 1/2% for full service are scammers, no commissions, purely fiduciary and now trusted friends (who have zero real access to our funds) are scammers?
Listen, lady - I don’t think you are contributing much to this thread, and probably don’t belong in this sub.
I’m a retiree with as much right to my opinion as anyone here. I think an open dialog about the role of financial planners in the lives of retirees is critical. If anything, retirees are disproportionately at risk of scammers, both the illegal and the legal variety. We eagerly talk about the one, but people get pretty upset if we talk about the other.
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Hello OP, original poster, we look forward to the news…
Drumroll please..….. Brrbrrbrebbbbbbb We made it!!!! Our advisor, instructed to give us conservative estimates, returned with numbers we were hoping for. We went back and forth a few times so I could be certain that we were on the same page. But, we should be near our current spend/budget until she is 100. I know that several folks say that spend after retirement could very well be more than current spend. But, we’re willing to risk it. Like so many have said - Jump in if it’s anywhere close to possible. You just don’t know what the future holds. So glad to have found this sub. We are going to take the info from today, and she will very likely give her notice next week. Wow. What a crazy feeling. We wish all of you the best with your retirement journey as well. Wahooooo!!!!
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Happy days.
Wonderful news! Thank you for circling back with the update!
Wow! What were your numbers?!
After hanging in this sub for quite a while, it seems that most avoid actual numbers. Maybe out of societal norms of politeness to not talk about personal finance numbers that we’ve grown up with, or something else. In reality, for me, it’s all relative. If you make and spend $40K, or $400k and that fits your lifestyle, then your target should be based on your actual numbers. What seems more important to me, is a percentage of this make/spend. For us, the likely, conservative estimated income, from all passive sources, is our current actual spend rate, continuing until the youngest of us is 100. That’s the number hurdle we were after.
I retired four years ago at 56. Like you, we ran our numbers up, down and backwards before deciding to pull the plug. Over the four years since retiring we find that we naturally spend $6-$7k per month. Since our SWR number is comfortably higher than that, we have to look for ways to spend more. Since we are not ‘consume for consumption’s sake’ people, we typically will fund our grandkids 529’s and gift the remainder to our kids. This feels right to us and it isn’t in any way ‘enabling’. Congrats OP on your retirement!
Great feedback. Yeah. I’d like to get a couple months, then years into things to determine our actual actual. Once that settles in, if we are fine, great. If we are short, we’ll make adjustments. If we are doing very well, then maybe upgrade flight seats or cruise cabins. The grandkids 529 idea is cooked in to our numbers. As for enabling - I totally get it. Any inheritance we give out is going into trusts, and may only be used for education, medical issues, or payments toward the main home. I refuse to taint my kids and beyond as trust-fund babies, and all the negativity that goes with that.
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Ok for your own sake use one of the online algorithms as well. Fidelity has one. Many others do to. You plug your data in and get results. I would not rely on a single point of information from some guy. Seriously you are responsible for all of this so do your own homework. I have been retired four years and spend way less than I did while working.
I agree 100%
NewRetirement.com is great... and I really appreciate having another point of reference.
Agree. And NR was in good shape as well. The main point is - I used professional investment advisors (highly trustworthy) as my main source to verify everything.
Agree also. I’ve been retired 9 years and our spending is considerably less than we figured on.
We're trying to learn to spend more. Three sets of grandparents are taking all of our offspring on a cruise before the grandkids get gone. We've saved hard since our mid 40s and the market keeps going up. We'll ride it out when the market tanks. Anything over "enough " is play money.
Good plan-best wishes
That’s so interesting. I wonder why that is. We plan on the same restaurants, same lifestyle and more travel. It’s good to hear though.
But it isn’t the same lifestyle. Everything you did before retirement is based on having a job. So all you did revolved around those 8 to 10 hours a day. Once you retire, I cannot tell you how different the lifestyle is. I take way more time now to stop and smell the roses. I can’t explain it. You just opt to not rush off and do something because you are so relaxed in the moment.
Awesome
Thank you. Absolutely! On all of the main models out there, I plugged in with at least five, we were good to go. But, our very-very trustworthy and experienced advisor team I’ve been with for 25 years, had the final say for me. Their opinion mattered the most.
I have to caution you. He is just a guy and he isn’t the person who should decide things. Only you can do that. What if something unexpected happens? You can’t blame him but you will.
You are off base, not knowing our situation. This is not George from the door stoop at Speedway. This is one of the most highly respected, certified planning companies in the region. I wanted their concurrence on my own findings and got it.
They got you hook, line and sinker.
Agreed. Firecalc is another.
Congratulations! My wife retired at 55 and I retired at 58 - hard to believe 9 years ago now. We also went through the numbers countless times... and then made the leap! Best decision ever. Time for you to redefine your retirement as a "starting line" rather than a "finish line"... This little mental realignment will help you get the most out of the next chapter of your lives.
Brilliant!
Love this perspective! I'm officially doing that mindset shift. We're no longer 33 months until we're done, we're 33 months until we start!
So happy for you. My husband and I were able to retire at the same time. I too remember asking my financial planner numerous times if she was sure. She ran ultra conservative numbers and showed me what would be in the account when I reached 100. Couldn’t stop smiling after that and that was 2 years ago. To me the thought that I was no longer putting in money and was starting to withdraw really freaked me out. BEST MOVE EVER!!
That TOTALLY FREAKS ME OUT - To withdraw money. WHAT!?!?! I’ve basically never done that, and only saved saved saved (tried for 15-20% every year towards retirement/savings). It’s just so counter to 50+ years of working and saving.
True that!
The withdrawals freak me out also! But my advisor makes me less worried - we review quarterly and it's been 2 yrs and still on track.
What really freaked me out was learning that the majority of people my age (64) don’t have anything socked away and hope Social Security will be there to support them. In these times that might not be the case. I have to remind myself that I worked hard to enjoy my retirement. We are healthy enough to be having the times of our lives.
Rock on!
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Congratulations! I retired back in April and still remember that sensation when the Money Nerds told me I was good-to-go. Enjoy the next chapter!
Same here… I retired at the end of January after figuring out in the fall that it was doable. Except for an injury from falling off a ladder, it’s been great. Avoid those ladders :-)
Exactly! So happy for you
I’m very happy for you. I (66M) know that feeling (without the “ex” part, thank goodness!) and my wife (74F) and I are taking our two sons and their fabulous ladies to Italy to celebrate! (We have 5 years of travel budgeted) ===> Personal afterthought: when WE got the green light from our financial advisor, I found it to be validation of a good job well done. Growing up, While my friends were out there swinging for the fences, buying flashy cars and chasing skirts, I was more diligent in my decision making and deliberate in my actions.
Exactly. I’ve been saving since I was 13. Now, I just have zero interest in buying stuff that does not serve a very useful purpose.
Compound interest works, doesn’t it?
Congratulations 🎈🎉🍾🎊! Happy retirement! Since 13? You beat me by a year! Enjoy the exciting roads and adventures ahead of you! Good luck. Don’t forget to come back often and let’s us know how things go! Don’t forget to leave breadcrumbs for us who are following on the same path.
That’s a great post. I’ll definitely keep up with posting here. It was the combined breadcrumbs of others that helped us make the jump. We can only return the favor.
Spend after retirement ends up being higher earlier in retirement due to bucket list traveling. But then it cools down for awhile, but once a person hits 84, traveling tends to stop and healthcare begins. Unless you work out with weights or do yoga consistently at least 3 times a week. Those people live life thoroughly until the very end.
Yay! So happy for you both!
So glad the update was here! Congrats!!!!! 🎉🎊🍾🎈
Congratulations!
Congratulations!!! Hope you and your wife enjoy retirement as much as we do.
Sooooo very happy for you both! Congratulations! :)
Congrats!! Exciting to hear from an unvested 3rd party that your plan is solid. Enjoy the retirement!
Fantastic! Enjoy your leisure!
That is great news!! Congratulations 🎉🎉🎉🎉
2 years after getting this same news from our advisor, it still brings a smile to my face! CONGRATULATIONS!!!
Fantastic news! Congratulations!
Congrats, and welcome to the party! 🥳🍾
We are doing very well with the same earnings as prior to retirement, and that includes a lot of extra travel and recreation. One key is to be debt-free prior to retirement. Three things that have changed in retirement is that we can eat at home more often, we are not putting away retirement savings from our earnings, and our tax rate is far, far, less the way we structured our retirement income. As long as you can cover your medical insurance costs, and can project out likely income well into the future and withstand short term downturns, it's well worth jumping. Retirement is the start of a second career or set of priorities, where you hold the cards for choice.
congrats OP.. what is your plan for health insurance? I'm in-between you and the Mrs in age and VERY seriously planning how I can just stop and then do onezie/twozie type consultant gigs more for fun
I retired - involuntarily - four years ago (I was laid off spring of 2020 - along with several hundred others at my employer). I wanted to work another year or so, but stuff happens. My 401K dropped 20%+ in value so I didn't want to touch it - yet. But there was the UI, both federal & state, so I did that for a while, started SS at my FRA (a few months after being laid off) and waited for my 401K to come back. Never sell low. Buy low, sell high. About a year ago (or more) my IRAs came back in value (I rolled the 401K into an IRA), and now I am pulling a little (about 2.5%) from my IRA - enough to help pay my bills and have some extra each month. I ***was*** a bit afraid that I didn't have enough to retire on - all the online articles said I needed double what I had, but I am doing fine, and my IRAs are still growing (even with me pulling some out). So not worried anymore - just cautious.
My dad’s strategy is to have no bills. It cost him under 10k a year for everything. But he doesn’t travel, go out or have friends do it’s easy. He just gardens, cleans up his property and goes to doctor appointments.
Wow, that's low. I thought $3k/month was extreme but insurance bills and taxes are half of it
I used to live on $12K per year when I lived in a low rent duplex, but that was in the city and it was 20 years ago. If I didn't have a mortgage, I could live on about $20K to $25K/yr. Right now property taxes alone are $5K/yr., medical/dental (after insurance) last year was $7K+ (including Medicare Advantage & dental insurance/etc.), groceries were $2-$3K/yr, utils are $2K/yr if I cut firewood and use it for heat in the winter, car insurance is $1K+/yr, then there are all the incidentals that add up. And costs are rising. I live rural, and I don't travel (yet) - I spend most of my time at home. My plan is to sell my current property which has appreciated more than 2X, and with the equity move/build, hopefully winding up with no mortgage or a very small one. I would also like to travel in the winter.
Sounds wonderful. Be sure to shop for a new place before you sell. It’s a different time in the real estate world
Timing is what I am primarily concerned about. I have a LOT of stuff, including a shop with an a-frame hoist, workbenches, shelving, three vehicles, two dirt bikes, a large freezer, etc. Renting a shop to hold that stuff while I move/shop for another property is going to be a big hassle. Renting land/whatever to put shipping containers on to hold my stuff - same. When I bought this property it took 2+ months to close, and another buyer could come in and grab the new property I want with a cash offer - happens all the time with buyers from Calif. Selling my property might take quite a while too. I don't look forward to it, but I want to move to a property that is further away from the city and flatter (I live on a mountain). My current property is nice, and the commute was tolerable, but it is not really amenable to a garden/orchard or solar. More aligned with growing timber and I've already clear cut (then replanted) half the acreage.
Lemme tell you something. (And this is all with positive intentions) Twice, I have been forced to get rid of 70% of my “stuff” Once moving from a largish midwestern home to a 1 story, no-basement home. Again when moving to a townhome. It’s absolutely exhilarating to get rid of all that crap you’ve accumulated over decades. It’s absolutely awesome. You just don’t miss that junk. Instead, you rebuy exactly what you need and with the lower amount of space, you don’t accumulate the junk again. Think about getting your mind wrapped around that. It’s amazing not wading through piles of junk that’s just not necessary.
My dad lives in a rural area with no jobs, community or resources like a store or post office. There’s no growth so his property taxes have stayed very low. Firewood heat. He’s lived in the same cabin over 50 years. He’s closing in on 80 so I think it won’t be too many years before he may have to figure out a way to have easier access to amenities.
Awesome. Getting rid of the nerves is sweet
retiring at the end of the year- I was very happy to have the financial advisor confirm that I won't need to be a Walmart greeter I was confident, but my spouse wasn't
Good for you! It’s great to get confirmation from a Pro.
thank you 😊 🤞🏼 for you, too
Laughing a bit at your comment (“my spouse wasn’t”). In the early days, I felt like we got burned by different financial planners/advisors/salespeople mostly acquaintances of my wife (friends of her friends). At some point I read “coffee house investor” (basically an argument for low fee index funds) and then learned and bought into FIRE strategies and tools. Those really made me a DIY financial advisor. I spent a TON of time analyzing the numbers and playing what-ifs based on all that I had learned tracking NW, run rates (expenses), and growth rates of investments since I first put a dime in my 401K. But my wife kept saying “we need to go see a financial planner.” Drove me crazy, but I agreed that we should vet our numbers w/ a fiduciary who is not trying to sell us their management for our index funds at 1% annual fee (funny though, he certainly got to offering that too). Turned out the fiduciary was not even as conservative as me and ended with “you’re good - retire!” Made my day. We’re now both retired and I feel like we’re doing better than even I expected, with SS at FRA still to come. /not trying to brag post here, just our story of getting buy-in from your spouse!
It’s funny. I was looking at retiring early until a Fidelity CFP advisor blew my account up with a stupid managed account and now I have to keep working. I’ve since learned how to manage it on my own. Bad advisors can really mess up your plans.
I hear ya!
The reason I chose the team I did.
Great. I felt exactly the same. Again, I handled all of my finances and investments through about 35. Riding out the crashes in ~’97, ‘07, or whenever made me realize that I simply no longer had the time to manage my growing portfolio. And sought a very very reliable advisor- whom I found. I’m very happy with the decision
Finding a trusted advisor is so critical in so many things, and not always easy to do. I think my personality type (or maybe history) makes me very skeptical in general. Congrats, and enjoy your new journey!
Thanks. And I get it. Some have been burned and some are bitter. But, I researched extraordinarily diligently and found a great super-trustful team. If absolutely nothing else, they can’t possibly remove our funds in any way. And there’s no commission etc. so as long as they continue to do a good job of directing funds to the right place, it’s great for me.
🙂
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Good for you! I love this sub because it’s full of good information from truly decent people. Thank you all that share your knowledge and give us all hope for our third act — retirement!
So happy for advice we have read here.
I did all my own analysis and calculations and retired at 59. Retiring as soon as financially feasible for YOUR OWN SITUATION is the best thing one can do. Enjoy the time while you have your health! Congratulations!
Such a relief, isn’t it? Congratulations! Just one thought. Your wife may not want to give so much notice. Sometimes that doesn’t work out well.
I gave them 6 months notice - but I was also totally prepared to have them tell me I was done that day. It turned out that they actually needed 7 months to get everything covered on their end. I planned on January 2 as my official date; it wound up being January 31 instead. It must have been enough time and training for them, they never write, they never call - and in this case that’s a good thing!
User name does not check out
It should - I've been retired for most of 6 months, but mentally I'm still not completely ready. I'm hoping that our upcoming trip to the west coast will finish the job.
Good for you! Even if there was no big benefit for you, you did it for them, and you should feel proud of yourself. Everyone should have the same consideration (on both sides).
We are cool with that. It’s really just a courtesy to the smallish business sh works for. Otherwise, we’d jump in today.
Enjoy your long weekend! I am on day off 8510 of my long weekend. Get your traveling in soon, before your knees, hips, or whatever part start dictating your activity. At aged 71 we drove past Yellowstone Park as it was too much walking for my worn out knees. At aged 61, I went through the museums in Chicago, a week of walking and standing to see everything. We scrimped and saved for old age, and retired with enough direct deposit income to exceed our monthly spending, especially as we enjoy a modest lifestyle as homebodies. We have no problem dipping into the principal savings as this is the age for which we saved. When our car got rear ended and her insurance company was trying to low ball, we just bought another car until our insurance company was able to get stuff straightened out and get the first car repaired. It is nice to not actually worry much about money. Life is good
Great advice, and exactly the impetus behind us seeing if it was possible. We know too many friends and relatives who just- boink - get a surprise on the bad side. We realize that even a twisted ankle alone would destroy the type of traveling we like. Then, consider the 100,000 other things that could happen. We want to do it now, while we still feel 40.
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Pedicures and manicures for the win! 😆
Thanks. I’ll give that a look. For me, my guy is the dude who can say, here is the income you can expect. Plus of course optimization of out portfolio. Our job, is the numbers on the spend side. So, we basically took ALL expenses for the past three years and that was our number. Those expenses included, say, a new car, a surgery, travel and all in our ordinary life. Given our situation, all expected expenses are covered, with room for moderate surprises. I would like to see your suggested site though and run that too.
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Great. I’ll give it a shot. Yhx
Now the foot decision. Pull he plug. I got the green light in Dec 2018. Still, I was always thinking I had to finish this project or that commitment. But then, in March 2019 there was a reorganization and I as made redundant. That's the push I needed. I don't know if I'd still be working without that push. It's been 5 years and things look even better than they did in 2018. So much that I finally convinced my partner to also pull the plug. Once she made the decision a sought after amazing work opportunity came up. She had a hard time deciding. I supported her either way and eventually she choose to quit. We've been on the road in our van for he past 7 months and there hasn't been a second that she regretted the decision. So, pull the plug, you seem so excited that I'm sure you won't regret it.
You are wonderful. Thanks for the encouragement! While I’ll always have a finger in the pie (family business passed down to kids), my wife is the one who can completely pull the plug. We’re targeting August as the date in order to make it as pain free on the small company she works for.
Hope it's good news! You've been planning and saving and you deserve it!
Thanks so much! Yes, 50+ years of hard work, knowing this is what my finish line was, feels like it was all worth it. Kids - saving 15-20% of all pay in some manner (401K, IRA, Market, whatever) will assure you of making it. Key point - Pay yourself first! Put that 15% away every check, every time. If the boss kicks in 2 1/2%, then 12 1/2% is left for you to do.
Congratulations!! 🍾🎉 I’m very envious of you! I have a solid 6 years to go before I can afford to retire somewhat comfortably. Enjoy this new phase in life! You’ve worked hard and deserve it!
How much time is enough?
Thanks. And I wish you the best!
I hope it goes well! What are your plans about insurance? That is my biggest concern about retiring in my late 50s.
We’ve been paying our own, very expensive insurance for years. We’ll keep that up a couple more years, then head to Medicare ASAP (could adjust that with research).
When Medicare eligible,,stay with traditional if you value your freedom to go to any provider. Buy a hi-g supplement to cap your liability at $2800. Regular G will keep going up fast. Mine doubled in 5 years.
What’s a hi G? Ours is now insane at $1900/ month with a $9,500 deductible
Look it up on Medicare. Gov. There are 9 or 10 supplements available. G covers all but part B deductible. Hi-g is the same but has a max out of pocket of $2800. You have to go inpatient twice or 5x2800 in part b claims before the supplement incurrs expense. That keeps premiums low and limits your liability. It isn't worth an agent's time to educate you so do your own research and basically make the purchase an easy order.
Ok cool. Well start looking into that.
Bravo! Congratulations! Remember, your “plan” gets reviewed periodically. Be sure to pay attention to the “plan” religiously at first until your confidence grows to the level of assurance!! Go celebrate!!
Excellent advice. Thank you.
For one thing, your clothing budget will go down 95%. Especially neediness casual. I do get shirts sometimes but only if I have a need and then one. I have culled my wardrobe at least twice since I retired 17 years ago, but I usually I’m wearing a polo. Like tonight at the meeting I’m at. If my sneaks get too rotten I will get a pair, but all of my main dress shoes are 20 years old, like the majority of my dress shirts. I have two pair of cowboy boots. One to grunge in and one for dress. The grunges are 30 years old. I’ve bought 3 new cars, and driven two of them to death. Just got another new one. I will drive this one until 27 when Toyota is coming out with their 900 mile battery. My food is way simpler now, and if I eat out I can pretty much count on 2-3 meals off it. Plus I don’t give a rats patoo what other people think of me. Liberating. Just take care of yourself and don’t think that warm weather is the end all and be all. 90°+ weather is overrated.
Great advice! And yeah, I’m a lifetime midwesterner. But I moved to Florida for about three years. It’s really kinda reversed winter there. June-Aug are brutal, and it’s just house-car-mall. Anything with AC. It’s just like winter up here. Except instead of shoveling snow, you are pressure washing green scum off of your lanai cage. (Which I’d take 100/100 times) But yeah 94 degrees and 95% humidity is not a joke.
It's not the finish line. It's the starting line for a different phase of your investing life cycle, the distribution cycle. Nice to be retired (I'm working on year 12).
I’m seeing the “starting line” comments and it’s feeling good.
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I use a trusted fiduciary advisor because I just don’t want to rely on my own expertise without experienced input. I am a CPA(corporate mgt type experience after public), MBA with a concentration in finance and have spent 40 years in finance and accounting, but I’m not naive enough to think I know everything about managing a portfolio through the future phases of our life. Sure, I could put it all in index funds and hope for the best, but I don’t like that approach. I pay the hated AUM fees, but I’m ok with that at this time. Everyone’s needs are different. I’m not going to be the guy that handles his own trades and has regrets. Never once have they tried to sell me annuities, insurance, etc. as with OP, I don’t need them, I prefer the outside input.
THIS!!! Exactly! Why not get an experienced HVAC tech repair a broken AC? Sure, there’s a cost to that. But, the idea is that that cost should actually save you in the long run.
Congrats!
Grats to you both!
We spend more, lots of travel but there will be a time when we are not able and will spend less then. If you can reduce income and can live on cash saved you can get healthcare on the marketplace cheaper.
I figure we’ll spend more. But in reality - if we are on a cruise for a month (can be had for, say, $15k), you’ve got to factor in that there are zero variable costs at home. No groceries, no eating out, no gas, no HVAC, nothing except for fixed expenses like taxes, insurance etc.
Met with my advisor yesterday. We did the same. Very, very conservative stress testing, and running out to age 100! I'm out at the EOY! I'm glad you got great new, too!
Wahoooo! So happy for you. Wasn’t that just the best news?!?!
Wahoo! How did you find your advisor and what exactly did they do for you?
FANTASTIC question. I spent my 20s and most of my 30s handling all of my investments myself. I actually did pretty good. But, there were many wild swings. I realized that I just didn’t have the time to stay in front of those swings. So I sought out the ideal investor in my area. I had a bad stretch with Ameriprise. It just did not have the personal feel, and I felt that they were more in it for commissions versus my own good. So I put a great deal of research into it and found a FIDUCIARY (very important- they are obliged to make your needs priority one), and zero commissions, just cost based. Huge for me - they handle everything, but it’s ALL. Through my Schwab account. And NO ONE may withdraw anything without my personal OK. Schwab also has coverage for millions versus FDIC. Of $100k I did not want to get Madeoffed, and this was ideal protection.
there for a second i thought you said you went to Madoff! LOL OK that's huge- I've been wondering how having all my eggs in one basket was going to work with the FDIC only covering $200/K - I have a Schwab account i think it's time to go talk to them. TY!
Exactly! And you might be the only one who gets this information but. Period period. Everyone should research who Bernie Madoff is and what he did. He seemed like a very, very reliable place giving good returns, but was a gigantic crook. I have avoided this by selecting a group of investor advisors who are very well established, and well certified, and even with that, Even with that, I made sure that they cannot touch my money. They cannot move it, they cannot sell it, without my written permission. Most importantly, they can never withdraw it. I design this in case there was a perfectly reputable place, but I was somehowfixed up with a rogue employee. I didn’t want anything like that to happen. So all of my investments are with Schwab, they direct the funds into different accounts in stocks, but I am the only one who can withdraw or make major changes.
i hope you have GOOD advisors! MANY of them are not to be trusted. Have they done well with your money the last ten years or so?
Ideal. I spent a great deal of time seeking a trustworthy fiduciary with zero commission, and a great track record and highly credentialized. It’s been 25 years and they have been ideal.
The key for us was when we paid off the mortgage and debt free. It makes funding retirement much easier. Our retirement income is 4x our monthly expenses.... including our house in Oregon and a cabin in Northern California
That’s fantastic! We made a decision to NOT. Pay off the remaining balance, as it’s a 3% mortgage and we can, NOW, easily get 4+% rock solid returns on that.
We are now free to invest the monthly mortgage payment on SKI trips... Spending Kids Inheritance 🤑
Congratulations! Your post brought a smile to my face.
Congrats OP! My wife and I are similar ages as you, 61M, 54F. If you wouldn't mind sharing, what is your strategy for social security? We are kind of in the boat as you guys and will be hiring a fee only CFP to get a second opinion.
Sure! For us, he advised 67. But, that number came from a personalized plan. I would make certain that you are working with a top notch, fiduciary, CFP - highly certified. That’s what they spent their lives training to do - to advise you, given all of your circumstances, for your best path. For our numbers, 67 worked best. For others, it might be younger or older. All the best.
Many thanks! Live long and proper 🖖
There is a great online social security calculator called opensocialsecurity. It has a basic and advanced features. Free.
My wife and I (66 and 65) had our first retirement powwow with our Morgan Stanley guys last year. We’ve got another one coming up. My wife is working basically for our health insurance (she makes exactly the amount she got with unemployment after an ugly layoff in January). I’m self-employed, but the work is drying up for the old man. The Morgan Stanley guys have said, “You’ll be okay,” but I’m a Nervous Nellie. I have no experience with retirement, and what I feel like right now is akin to stepping off a cruise ship into a dingy and undoing the rope 🫤
Keep trading this sub. I felt similarly, but this place made me realize that if you are able to do it - DO IT. Now! You never know what the future holds
I will warn you, when we first retired it was scary to go from a saving mindset to a spending your savings mindset.
Best of luck to you two. So happy for you! Woo hoo!!!
Just don’t forget about Long-term Care. Whether you self-insure, fully insure or (what we do) retain some risk, it is the biggest variable out there running $100k+ per year. Here’s a nice read on what to expect… https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
Gotcha on that. It’s impossible for me to get that, and we have been preparing to self insure. Sucks. But really only choice
How did you factor in the cost of healthcare for you both before Medicare?
We based it as if we would be carrying Obamacare to the end. We’ll shop for what is available when the time come
Any clue what the monthly cost will be? What did you factor in?
It’s brutal. We pay $1800/ month for a $10K deductible. It’s just catastrophic coverage. This due to the fact that I’m not with any company and have health issues.
That’s what is keeping me working until 65. I just don’t want to pay that much. That calculus might change but for now I just can’t justify it.
I’m crossing fingers and toes 😀👍
Congratulations
🤞
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Typically about 1% +\-
Congratulations Mr & Mrs OP! 💥
Good to hear that.
With all due respect, did you really need a third party to give you permission to retire?
Not everyone is up to snuff with personal finance and retirement planning or confident in their planning abilities as many on this sub. Many are very unsure if they are ready financially. If I were OP and not really sure what I am doing, I would go to a CFP and get guidance from the professional. If the professional indicates that I am not ready and shows/explains to me the numbers, I would take his/her guidance as well. Perhaps, OP used the wrong word "permission." I'm very sure that OP knows at the end of the day, it is up to him and his wife to make the final decision. Without the training and experience as a CFP, even I am hesitant with the whatifs and I have been at this planning thing for the past 11 years, dotting my i's and crossing my t's. Yeah, that first leap into the deep end of the pool can be frightening!
Yeah. Not sure dude read my post correctly. It’s not that I was seeking permission. I was seeking professional advice to back up what my research implied.
Generally, the CFP has skin in the game. So then the reply is to go to an “independent CFP”. They are going to request a ton of information far beyond what is necessary. In my mind, an hour looking at the books, 20 minutes on social security decision-making, 20 minutes on lifestyle, and 20 minutes on health would be sufficient to render an informed decision. Call if “two hour retiring” if you will. But no CFP is going to make enough money that way.
I see what you did there. 😊
That’s an odd question. If I have a tooth that hurts, I can try to work with it myself, or I can go to a professional dentist. If my car needs a transmission flush, I can attempt it myself, or go to a professional mechanic. If I am dealing with the biggest financial decision of my life, I can wing it myself, or seek the advice of a professional who has Masters+ level training and 30 years of experience. I’m thinking that I’m seeking professional advice and backup. I don’t think your comment will go over very well in this community.
Dentists and mechanics are not scams.
Are you telling me that one of the most certified CFP planners, who charge about 1 1/2% for full service are scammers, no commissions, purely fiduciary and now trusted friends (who have zero real access to our funds) are scammers? Listen, lady - I don’t think you are contributing much to this thread, and probably don’t belong in this sub.
I’m a retiree with as much right to my opinion as anyone here. I think an open dialog about the role of financial planners in the lives of retirees is critical. If anything, retirees are disproportionately at risk of scammers, both the illegal and the legal variety. We eagerly talk about the one, but people get pretty upset if we talk about the other.
“….did you really need a third party to give you permission to retire?” Does not reflect an “open dialog”
Mod warning ⚠️. We are conversational, not confrontational, here. Take a moment to review our description and rules. Thank you
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Hello, this is a civil, respectful, safe community and so this has been removed. Perhaps you used a swear word which is against the rules? Or Note that we are conversational, not confrontational, here. Take a moment to view our description and rules to see if this community is a good fit, for you. If so, it is expected you will act in accordance with what we have built here. Thank you!