OK, YMer's here you go! I need advise!

[Deleted]

$1.7M minus the present value of your SS benefits, if you are maintaining 2 homes and want to maintain a comfortable lifestyle.

No to paying off mortgage or cash flowing a house.

No to getting rid of a car. Be a two car household until one of you isn't allowed to drive anymore!

Have you lived in FL before? Rent for a season if you haven't spent a lot of time in FL already. Make sure it is really what you want to do. Buying a house and then changing your mind is a very expensive mistake!

[Value Buy]

Jul 17, 2014 21:04:44 GMT -5 ❤ mollymouser ❤ said:

Assuming you want to retire on a Friday, I vote for Friday, November 7.

This should let you have plenty of time before Thanksgiving and Christmas to enjoy all the preparations of the holiday seasons. It's a week into the month ... and the weather should be cooler then, giving you ample opportunity to wear some of your cooler weather "work clothes" before you stop working.

Right now I seem to get buried with way too much company paperwork after the fifteenth of the month, making the last two weeks hectic at work, so I think I will go earlier in a month that I go out, so it is a possibility.

The leaves will be turned by then here at home (primetime October 20 thru November tenth, depending on fall temperatures) and I want to take the time to appreciate them and smell the nighttime campfires......so November 7th might be too late. We shall see.

[Value Buy]

Jul 18, 2014 0:07:56 GMT -5 @lillylake said:

$1.7M minus the present value of your SS benefits, if you are maintaining 2 homes and want to maintain a comfortable lifestyle.

No to paying off mortgage or cash flowing a house.

No to getting rid of a car. Be a two car household until one of you isn't allowed to drive anymore!

Have you lived in FL before? Rent for a season if you haven't spent a lot of time in FL already. Make sure it is really what you want to do. Buying a house and then changing your mind is a very expensive mistake!

Unfortunately, I will NOT be at 1.7 million, but I do not believe we need near that amount.

Florida, near the gulf coast is fine for both of us, but we do not want to live year round down there. At least not yet. She cannot be away from our children and grandkids all the time.

We know you have to do everything by 10 am in the summer and only come out in the evening hours, or you melt, due to temps and humidity.

We have visited parents who lived down there  in winter, and vacationed with kids and grandkids in summer, so know some of the ins and outs.

My sister lives (moved there years ago and not retired) just south of Daytona Beach, been there many times, and I could accept being full time resident in that area, but my wife has too many old friends retiring to south of Charlotte Harbor area or further south, and has her mind made up that is where to be.

As far as renting a year, rents have really gone up the last two years as well as home prices. It is time to pull the trigger.

I wanted a condo on the water, but my wife feels they are too small especially when the kids come down to visit, and condo prices on the water have become out of reach from what we are welling to pay, unless you want something under 1,000 sq feet.

Neither of us are welling to be house rich and cash poor.

We have both noticed as we get older, we sit in the house in winter. I do not want that if not working. We have to stay active, and Florida fits that bill for the walking, and getting out and doing things. Arizona and the desert do not make the cut for either of us.

[vonna]

Enjoy your retirement!!

I'm not going to share what I think your "number" should be to last until you are 90, but I will share something I found out from my 80 year old dad this summer.

He has never shared a lot about his finances, but had told me that he had reached millionaire status in his retirement accounts before he had to start taking RMDs.

When we were all visiting him in celebration of his 80th birthday, he told me even with taking his RMDs for a decade, he has more now than he did when he was 70. He figures that may start changing since his RMDs get higher with his age.

He and phil have some things in common with their financial advice.  He has a mortgage (refinanced it in his 70's for a better rate), and his investment accounts are all stock index funds.   He has no bonds.

[Sam_2.0]

Jul 17, 2014 23:23:55 GMT -5 NastyWoman said:

Jul 17, 2014 13:03:52 GMT -5 Sam_2.0 said:

You should officially retire as of Oct 19th, since that's my due date That's the only advice I have.

Along those lines may I suggest you have your little boy 10 days early since that is my birthday and that also means Value Buy can retire on the 9th 

Absolutely! I will gladly welcome him any time after Sept 19th, but not a single day after Oct 19th This momma is done with being pregnant!!

[Knee Deep in Water Chloe]

Jul 17, 2014 12:02:37 GMT -5 yogiii said:

I found out recently that at my company if you work 1 day in that month you get the PTO allotment for that month so I would pick retiring Tuesday November 4.

Especially since that's my birthday. 

[Bonny]

I would think long and hard about owning a second home that far away. Unless you are planning to stay for more than a couple of months you are generally better off just renting despite the increasing costs.

We have owned a vacation home in So. CA for over 12 years and have rented placed it into vacation rental service. Despite that we still run an operating negative of about $2k/yr and that is without a mortgage. It also does not include capital improvements which in the last several years are averaging $5k/yr.

This a relatively cheap house to run with no A/C, no landscaping and no outside irrigation. Taxes are about $2.5/yr.

We keep it because it was DH's father's house and we have a lot of sentimental attachment. But we don't fool ourselves that it's an "investment".

[Blonde Granny]

Amen Bonny. My DH hated owning 2 of them. Whichever one we were at, he worried about the other one. Especially the Florida house. Storms, humidity, a/c that goes out, pool pumps that quit, pool services that don't show up until a week before you're due to come back.  We went through it all.

You can rent for many years and not spend $250K. Walking away when dropping the key on the counter top wins hands down.

[Value Buy]

Jul 18, 2014 15:57:38 GMT -5 Blonde Granny said:

Amen Bonny. My DH hated owning 2 of them. Whichever one we were at, he worried about the other one. Especially the Florida house. Storms, humidity, a/c that goes out, pool pumps that quit, pool services that don't show up until a week before you're due to come back.  We went through it all.

You can rent for many years and not spend $250K. Walking away when dropping the key on the counter top wins hands down.

That is absolutely true, but when you rent you have no idea what went on in the bedroom on that mattress, let alone on the kitchen counter and the food utensils with the previous tenants

WELL, I GUESS WE HAVE AN IDEA.......

[Value Buy]

Jul 18, 2014 10:01:30 GMT -5 Bonny said:

I would think long and hard about owning a second home that far away. Unless you are planning to stay for more than a couple of months you are generally better off just renting despite the increasing costs.

We have owned a vacation home in So. CA for over 12 years and have rented placed it into vacation rental service. Despite that we still run an operating negative of about $2k/yr and that is without a mortgage. It also does not include capital improvements which in the last several years are averaging $5k/yr.

This a relatively cheap house to run with no A/C, no landscaping and no outside irrigation. Taxes are about $2.5/yr.

We keep it because it was DH's father's house and we have a lot of sentimental attachment. But we don't fool ourselves that it's an "investment".

Right now it is hard to get  a short term lease matching our time frame, January thru mid April. The rental market is hot in Florida now, especially after the freaking cold winter last year. Many people line up their rental before they leave in the spring for the following winter.

And these rentals are not cheap, plus you have to find a furniture furnished place.

[Blonde Granny]

One of the advantages of VRBO vs owning is this: 4 years ago we went to Phoenix for 6 week, 3 years ago it was St. Augustine, 2 years it was Orange Beach, Al, last year back to St. Augustine.

This year we are going to San Antonio over Christmas, then perhaps back to Florida in February. It's nice to have options.

[Deleted]

I forgot to put my two cents in on the date. Since you are thinking October, how about an appropriate dispatch 10 code?

10-10  Off Duty

10-24  Assignment Complete

For retirement guaranteed to last 25 years for two, you would have to know what your planned annual spend is. I guessed $70K/year on average to maintain two modest homes, replace vehicles as needed, outsource services as you age, vacation once a year & travel to visit children. 

[Value Buy]

Jul 19, 2014 8:12:26 GMT -5 @lillylake said:

I forgot to put my two cents in on the date. Since you are thinking October, how about an appropriate dispatch 10 code?

10-10  Off Duty

10-24  Assignment Complete

For retirement guaranteed to last 25 years for two, you would have to know what your planned annual spend is. I guessed $70K/year on average to maintain two modest homes, replace vehicles as needed, outsource services as you age, vacation once a year & travel to visit children. 

10-10 sounds pretty cool

10-24, the assignment never seems to be completed, and if the reports ain't done on Friday of last day, will, they will be there Monday for the newbie, instead of me staying late to complete them.

We are thinking more like $55,000 to $60,000 right now. Between social security for both of us, dividend income, and some payments by the kids for house down payments, we should be right about there

Hardest part, is we have told the children and a couple of grandchildren that we have "helped", " splurged" might be a better adjective that the gravy train ends effective August. I can do it, my wife is the one having trouble on that front.

Our cars are 2011 and 2013, one paid for, one at .09 % interest, so will not pay that one off, as we make more than that on stock dividend returns.

Biggest arbitrary disposable use of funds for us is the campground and trailer. $700 a year in annual fee plus electric of maybe $8 a month, plus gasoline cost of trip there and back averaging $25 per trip, if we drive together. Double that if we  take both cars as sometimes I have to leave for work, and she stays an extra day. With me retired, it will always be one car going there, plus expenses of utilities drop at our main residence while we camp, especially air conditioning.

Campground is not an option to sell, as we prefer it to our subdivision.

1200 unit site with about 12 miles of roads, with plenty of comradiere.

[Bonny]

Jul 19, 2014 6:49:41 GMT -5 Blonde Granny said:

One of the advantages of VRBO vs owning is this: 4 years ago we went to Phoenix for 6 week, 3 years ago it was St. Augustine, 2 years it was Orange Beach, Al, last year back to St. Augustine.

This year we are going to San Antonio over Christmas, then perhaps back to Florida in February. It's nice to have options.

Very good point.

I'll also add that when you own your own vacation place you must set aside time to do annual maintenance. Since our place is a SFR, the minimum has been two weeks. This year it was in excess of a full month because I refinished all three decks.

If you have a condo you won't have to deal with exterior maintenance but you are going to need to pay for someone to inspect once a month. During that inspection the person should flush the toilets, run water through the drains and run anything that has seals that could dry out such as a dishwasher and washing machine. If you fail to do this your association can hold you liable for failing to adequately maintain your unit if any issues come up. Ditto for your insurance company. I've seen it happen more than once in the complex where my San Diego condo is located. Several owners are part-time and/or out of area owners.

[phil5185]

Biggest arbitrary disposable use of funds for us is the campground and trailer. $700 a year in annual fee plus electric of maybe $8 a month

That's a new one for me, hadn't heard of it before - do you rent a camping spot by the year? (We just drive into the forest and park the trailer between a couple trees.)  And $8/m for camping electricity? (We have only lanterns and a camp fire.)  Interesting - can you expand on the description? 

ETA. Have you considered a motorhome? If you want to avoid the hassle of owning two properties (and it is a hassle), if you want the flexibility of a winter in south FL, a winter in Destin, a winter in Presidio, TX, one in Myrtle Beach, SC, a MH lets you try new winter spots. And in the summer you could try some week-long North trips - the Boundary Waters, Upper Mich, yada. Since you are already into camping, this could be an alternative?   Plus, the MH might replace the second car?

[Gardening Grandma]

Jul 19, 2014 6:49:41 GMT -5 Blonde Granny said:

One of the advantages of VRBO vs owning is this: 4 years ago we went to Phoenix for 6 week, 3 years ago it was St. Augustine, 2 years it was Orange Beach, Al, last year back to St. Augustine.

This year we are going to San Antonio over Christmas, then perhaps back to Florida in February. It's nice to have options.

I cannot imagine going to the same place every year.  Sis and BIL have a time share; they go there the same time every year.  Although they enjoy it, the thought bores me to tears.  I enjoy looking on VRBO and exploring new places...

[Bonny]

Jul 19, 2014 11:25:04 GMT -5 Gardening Grandma said:

Jul 19, 2014 6:49:41 GMT -5 Blonde Granny said:

One of the advantages of VRBO vs owning is this: 4 years ago we went to Phoenix for 6 week, 3 years ago it was St. Augustine, 2 years it was Orange Beach, Al, last year back to St. Augustine.

This year we are going to San Antonio over Christmas, then perhaps back to Florida in February. It's nice to have options.

I cannot imagine going to the same place every year.  Sis and BIL have a time share; they go there the same time every year.  Although they enjoy it, the thought bores me to tears.  I enjoy looking on VRBO and exploring new places...

I think it can work for some people. We still love going to our cabin even after 12 years. In many ways it feels to me like going to the summer camp in the forest that I never had the chance to go to.

But also we have deep roots in So CA so it's not just about the place; it's also gives us an opportunity to either invite or meet with family and friends going back to grade school who don't have the time flexibility or ability we have.

That said, we also have both the opportunity and the financial resources to have several options. If we had a more limited financial situation I would think long and hard about taking on both the financial commitment and maintenance responsibilities of a second home as well as how it limits you to one place.

In addition, second home communities tend to be hard-hit during a recession and are usually the last to recover. Our cabin is a good example as is about the same value as it was in 2001 when we inherited it.

[backontrack]

On the question of when to give notice, I learned recently that the big defense contractor that I work for requires 6 week notice for retirement. During that time you are paired with someone from HR and have numerous meetings. You may want to talk to HR directly and see what the process is.

[phil5185]

requires

"requires' might not work for them, 'desires' might be better. A company cannot force someone to 'not quit'. 

[achelois]

I gave three months notice. The credentialing process at my employer was very long and I wanted to give plenty of time for them to find a replacement. 

Unfortunately, by time I left, they still had not done so. However, there was not much I could do about it. 

I picked the the last day because it was the last day the schedule was made out until. Fortunately, the day I got completely fed up and decided to retire and the end of the schedule and the usual lengthy credentialing process all coincided with the three month notice. 

The he day I got fed up with a particular surgeon's tantrums and abuse, I walked into the lounge and told the guy who was currently doing the scheduling not to put me on the new one. It was days before they realized I wasn't kidding. 

[skubikky]

No one is irreplaceable.   You think that your leaving will cause a problem and many times......no problem at all.

[bookkeeper]

Don't fall into the trap of needing a bigger house for "when the kids come to visit". You need to shop for a home for you and your wife that fits into your financial parameters. Hotel rooms are cheap compared to a larger mortgage and hurricane insurance.

DH and I will be selling our 4000 sq. ft. home in the near future. We are shopping for a 2 bedroom bungalow with a garage large enough to park our boat in. We have decided to buy the house that works for us, not for some people who may visit at some point in the future.

DH is retiring next month and everything we have read recommends having 25 times your annual salary in your retirement accounts to fund a secure retirement. It sounds like you are at least 62 so you may need less that we do at 55.

Knowing the actual dollar amount of your expenses - all of them - is key. That includes the expenses of a second home, or selling out and relocating to Florida.

Congratulations! Retirement is an exciting time!

[DVM gone riding]

Maybe you should consider buying in FL and renting at "home"  just a thought.  I think it is really hard to justify cost wise owning two places vs renting but I know bunches of people that do. I do think they are closer to the 1.5-2 mil mark though than you are. and I agree with others I think you would need an AOB of 70k to justify owning two houses with neither in rental services.

[murphath]

If you retire in October, you'd still have some lovely weather to enjoy.  It's actually my favorite time of year to travel just about anywhere.  Sounds like you have enough money so don't need to get your vacation days paid out--it would probably just get eaten up by taxes anyway.

So, I like the idea of using your vacation days like this:

Labor day week:  take four extra days

October: take off another week

November:  I'm assuming you have  Thanksgiving and the day after, so take another 3 days to enjoy the whole week.

December:  You have 8 vacation days left:  You get Christmas Eve, Christmas Day, New Year's Eve, and New Year's Day?
I'd take Dec. 22, 23, 26, 29, 29, 30, & 31 and Jan 2, 2015.  That has you back to work of Monday Jan.5 to tie up some loose ends.  Have a retirement date of Jan. 9th and get the heck out of dodge.

Doing the above means you would have 24 weeks left with @ 5 weeks for holidays/vacation.  19 more weeks (I'm counting from today) is a drop in the bucket but will give you time to get everything together, meet with HR to get the facts.

Good luck!  If I get picked, I'd like a gift card to Flemmings.  We love their daily 5-7pm 5 for $6 menu in the bar.  In fact, we went last night, had a glass of wine and a great cheeseburger/fries for $12 each--not including tax/tip.  Such a deal.
The only bad thing is you have to get there by 5 in order to get a seat--it's that popular.  And folks tend to stay for the entire two hours!  BTW, I'd toast to your retirement if I win.  You'll love retirement.  It's so fun to be lazy.

[phil5185]

November: I'm assuming you have Thanksgiving and the day after, so take another 3 days to enjoy the whole week.

December: You have 8 vacation days left: You get Christmas Eve, Christmas Day, New Year's Eve, and New Year's Day?
I'd take Dec. 22, 23, 26, 29, 29, 30, & 31 and Jan 2, 2015. That has you back to work of Monday Jan.5 to tie up some loose ends. Have a retirement date of Jan. 9th

BTW - 3 months after you are retired, you will never ever again think of ways to optimize your vacation/holidays - all days are now the same (great) - and you'll laugh at how you used to ponder the scheduling.

[WholeLottaNothin]

As for a date to retire, I pick October 3rd. I am due with my second son on October 13th but am really hoping to go earlier. I had my first son on June 3rd so I have my sights set on October 3rd. Sounds like a nice day to retire too!

[Value Buy]

Jul 19, 2014 11:08:49 GMT -5 phil5185 said:

Biggest arbitrary disposable use of funds for us is the campground and trailer. $700 a year in annual fee plus electric of maybe $8 a month

That's a new one for me, hadn't heard of it before - do you rent a camping spot by the year? (We just drive into the forest and park the trailer between a couple trees.)  And $8/m for camping electricity? (We have only lanterns and a camp fire.)  Interesting - can you expand on the description? 

ETA. Have you considered a motorhome? If you want to avoid the hassle of owning two properties (and it is a hassle), if you want the flexibility of a winter in south FL, a winter in Destin, a winter in Presidio, TX, one in Myrtle Beach, SC, a MH lets you try new winter spots. And in the summer you could try some week-long North trips - the Boundary Waters, Upper Mich, yada. Since you are already into camping, this could be an alternative?   Plus, the MH might replace the second car?

Phil, we are on vacation-err, a trip, this week to see a granddaughter, and great grandson, in Kansas City this week.

Hoping for some good KC barbeque tonight.......

We own the lot and trailer. Empty lots run from $8,000 to almost $13,000 depending on location, etc. Some lots with trailers go up to $55,000 for the high.

Cost us $14,900 seven years ago, worth about $29,000 right now. Got a great price from someone wanting out right away, and this is a popular area within an hour of Ft Wayne or South Bend. Owners come from Ohio, Michigan, Indiana, and Illinois.

When the grandkids came all the time, my wife was pretty much there for four days a week, so between airconditioning  and television and all the camp lights, electricity did add up.

It is a campground, but not really. It is a small city. Two community pools, a small lake on the one end with piers for the boats, etc.

Heck they even have fireworks every 4th of July at the camp.

Live bands at least twice a month for entertainment, etc.

Some retirees live there, May thru first week of October, and head south for the winter when the park shuts off the sewer and water.

[DVM gone riding]

seeing the above--so FL house/condo Dec-May (6 mos) campground--already paid for june-aug.  apt--rented space sept-oct near the kids or elsewhere.

FL house might become your "regular" house in the area your wife likes for retirement and freedom to travel a bunch. without owning two houses AND a campground! 

[Value Buy]

The spread sheets are being put together to see where we stand.

Looks like if we make a winter home purchase, we are looking at under $2,000 a month expenditures beyond our social security benefits.

Planning $7,000 extra for trips during the year, etc. We have decided to budget $35,000 a year in case of "under funding", but should leave us an ample cushion, but, if expenditures run higher than anticipated we will start taking some dividend income in check form rather than re-investing the dividends as we do now.

Our supplemental health insurance looks to be higher than we anticipated, based on talking to friends and family who are now retired. All our inquiries show us paying much more than the current retirees we have talked to. 

We figure the trip money expenditure dies out after the first ten years as we get older. Same for having two houses. After we are over seventy, we will not want the hassle of two homes, and I am there in only five more years.

If we do not sell our current house (decision is to be made by December, but will not put on market until next spring) and downsize, we will refinance at lower rate saving about 2% unless rates skyrocket in four months.

I still have not picked the actual date of retirement. If I stick it out until after first week in October, I get an extra week of vacation pay, so that is hard to leave sitting on the table.

[Value Buy]

It is official.

Friday October 3rd is the day.

Turned in the official retirement memo to my supervisor yesterday.