trimatty471
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Post by trimatty471 on Mar 19, 2016 4:49:05 GMT -5
It's possible they felt forced out "At my PT job I work with more than a few seniors who were forced out. Either they got laid off entirely or the conditions changed so much that they just couldn't work there anymore. One person said they knew the writing was on the wall a couple of years before it came but it was still a shock to be told that she was a fantastic employee Who had been there for years so they really wanted to take care of her by not laying her off. So they moving her job to another location, 2 hours away, instead. She got the only job she could at that point to bring in a few bucks. Working also allows here to get health insurance on the ACA exchange. Everyone here looks down their nose at it because their employer coverage is so much better, but for a lot of people if they get laid off before 65 the choice is to pay thousands of dollars for individual health insurance or buy food because they don't have enough for both. This board reads like a bunch of highly paid individuals not like a cross section of people in the country today. IME that 50% number is probably actually low. From what I have heard except for having a home they paid off most people don't have much saved at all and seem to be mostly okay with that. All they are looking for in retirement is enough SS to pay for their taxes and utilities and food after medicare is taken out. A little extra for the occasional fun things would be good but they are not worried about that. It is the loss of health insurance before they can get medicare that scares the crap out of regular middle class people!!" Yep. My mom wanted to retire at 62 but when she could not afford medical. A year later she was able to get medical via the ACA. I suspect an awful lot of people are in the same predicament.
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trimatty471
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Post by trimatty471 on Mar 19, 2016 5:34:55 GMT -5
I am a bit surprised that people want to retire and get a new/second job, especially if in their early sixties and the new job is physically more taxing than the old job. Why not keep working for another year instead? That way, they will - probably keep their benefits (saves money)
- may contribute to a 401k/similar (and defer the required minimum distributions if 70 or over)(increases retirement income)
- if they have a pension it may still increase (increases retirement income)
- SS will increase (until 70)
- one less year that their retirement money will need to support them (saves money)
- one more year of growth of retirement money (increases retirement income)
I've found that a job that requires physical activity may not be more tiring than many folks day job. I used to relax from my manufacturing finance job by working in my folks printing business, making deliveries, picking up supplies, working in the bindery, cutting paper, and other low skill tasks. The change of pace, spending a day moving cases of paper and envelopes was less tiring than budgets, labor performance variances, and construction projects running over budget. Yes mental exhaustion is more taxing than physical.
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Deleted
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Post by Deleted on Mar 19, 2016 7:06:20 GMT -5
Dh began what was to be a year long sabbatical last month (a month after his 52nd Birthday..) that fortunately (after some calculations) actually means he can retire now; early of our scheduled '19 date, so learning of that was really nice.
We have a 2nd property that we'll sell probably next year as soon as we get it emptied/painted/presentable for sale. We don't have mortgages at either place, or any other debt of any kind so that's good. Took us (mainly dh) 30 yrs. of hard work everyday, but he did it and we're thankful to have this time now.
My Honey-Do-List is a foot long, kid not...but at least maybe now it'll get done! Yay!
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tloonya
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Post by tloonya on Mar 19, 2016 8:47:27 GMT -5
I don't disagree. $1,000,000 in assets would give you $40,000 in today's money. so you guys/gals who are earning $100,000 today won't be able to live on that. You won't even be able to live on that plus SS if it is around. Inflation is going to help you get to that $1,000,000, but it is going to erode its value. I was talking to my daughter's mil at my newest granddaughter's christening. She has cut back and is planning to retire next year. Her husband is already retired. He works at Publix part-time, though. She talked about getting a part-time job as well. It is scary. What is scary?
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Deleted
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Post by Deleted on Mar 19, 2016 8:58:08 GMT -5
I don't disagree. $1,000,000 in assets would give you $40,000 in today's money. so you guys/gals who are earning $100,000 today won't be able to live on that. You won't even be able to live on that plus SS if it is around. Inflation is going to help you get to that $1,000,000, but it is going to erode its value. I was talking to my daughter's mil at my newest granddaughter's christening. She has cut back and is planning to retire next year. Her husband is already retired. He works at Publix part-time, though. She talked about getting a part-time job as well. It is scary. What is scary? How much is necessary to retire. I don't know many people my age with a million in assets. And $40,000 a year might work if it were per person plus then SS. But that is today, not in the future. So how much will my thirty-something kids need? That is what is scary.
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tloonya
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Post by tloonya on Mar 19, 2016 9:03:10 GMT -5
How much is necessary to retire. I don't know many people my age with a million in assets. And $40,000 a year might work if it were per person plus then SS. But that is today, not in the future. So how much will my thirty-something kids need? That is what is scary. From what I am hearing all these scary things are been talked about for ages. People who are 80 now telling me those articles were published since they could read but however it is going - it is going on...
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Ombud
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Post by Ombud on Mar 19, 2016 9:37:38 GMT -5
I am a bit surprised that people want to retire and get a new/second job, especially if in their early sixties and the new job is physically more taxing than the old job. Why not keep working for another year instead? I've found that a job that requires physical activity may not be more tiring than many folks day job. I used to relax from my manufacturing finance job by working in my folks printing business, making deliveries, picking up supplies, working in the bindery, cutting paper, and other low skill tasks. The change of pace, spending a day moving cases of paper and envelopes was less tiring than budgets, labor performance variances, and construction projects running over budget. So many of us like working but want a change of pace mentally or physically. The goal is to enjoy what we do rather than the paycheck It's NOT all about the money
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cronewitch
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Post by cronewitch on Mar 20, 2016 2:49:05 GMT -5
So far I spend all I want and it isn't much. Other than gifts and a roof I live on about 20k a year 10k is from SS. I just don't have wants. I have about 950k left so dipping in as needed or wanted. SS goes up to more than I spend at 70.
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Ombud
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Post by Ombud on Mar 20, 2016 8:15:43 GMT -5
they lasted 3 years on their savings. Which for them was savings because they never invested, only saved - as I'm sure many folks from that generation did because they grew up in the Great Depression era. Fortunately that mind set died out decades ago bc it virtually wipes out the benefits of compounding, they were lucky if their interest rate match inflation rate
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gooddecisions
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Post by gooddecisions on Mar 20, 2016 10:15:38 GMT -5
I hope retirement isn't a myth. I've been diligently contributing to retirement since 25 and maxing HSA and 401K since 30. Assuming I can stay the course, would like to not have to worry too much about it by 55. My mortgage should be paid off by then as well. I don't want to be laid off in my 50s (not uncommon in corporate America) and scrambling to find something. Retirement sounds much more appealing. My parents both retired at 55 in 2002, built a beautiful home in Florida and haven't had any worries (other than few health issues). Then again they have a paid off house and federal pensions.
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plugginaway22
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Post by plugginaway22 on Mar 20, 2016 11:38:29 GMT -5
I believe my grandparents ended up better than we will. They all settled in Fairfax county VA after the war to get 'Govt. jobs'. Both grandfathers, both uncles and both aunts lived their entire lives there and had stable but not highly paid positions. But...they had great pensions at retirement and best of all, when they finally sold their little brick ranchers they made a killing!
In 1950, my grandfather built a 3BR brick rancher in McLean, VA for $12k. In 1995, it sold for $450k.
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busymom
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Post by busymom on Mar 20, 2016 12:42:33 GMT -5
they lasted 3 years on their savings. Which for them was savings because they never invested, only saved - as I'm sure many folks from that generation did because they grew up in the Great Depression era. Fortunately that mind set died out decades ago bc it virtually wipes out the benefits of compounding, they were lucky if their interest rate match inflation rate Actually, that still goes on. My Mom & Dad never invested in the stock market. Their savings went exclusively into CD's & a bit of life insurance. (Of course, Dad had a nice pension, so even after retirement they were still putting money into savings.) I'm actually impressed with how well they did, in spite of avoiding the stock market.
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Ombud
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Post by Ombud on Mar 20, 2016 13:09:19 GMT -5
So that mindset is fine if you have a pension. What % still have that?
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Deleted
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Post by Deleted on Mar 20, 2016 14:32:54 GMT -5
So that mindset is fine if you have a pension. What % still have that? I agree. The shift to 401(k)s and their ilk essentially took the risk of outliving savings and making a sufficient return on investments off the employers and dumped it onto the employees. If you were to put your money only in CDs without the backup of a good pension, you'd have to have a LOTTA money- more than most people can save.
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whispering17
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Post by whispering17 on Mar 26, 2016 1:41:38 GMT -5
So, they're telling me I'm not living the dream, I'm living the myth. Who knew? I live in the myth too...yayyyyy
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Tiny
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Post by Tiny on Mar 27, 2016 11:48:58 GMT -5
How much is necessary to retire. I don't know many people my age with a million in assets. And $40,000 a year might work if it were per person plus then SS. But that is today, not in the future. So how much will my thirty-something kids need? That is what is scary. From what I am hearing all these scary things are been talked about for ages. People who are 80 now telling me those articles were published since they could read but however it is going - it is going on...
I think the "we'll need some seemingly exhorbitant amount of money to retire in 40 years" is more about "hey, we need to live beneath our means for now going forward until we're dead. - that means that we need to include some savings EVERY paycheck from now until we retire. It means we need to carefully consider the risk when taking on more debt (it might be worth the risk to take on debt to start a business or get more 'schooling' versus buying a really impressive vehicle or recreational vehicle).
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Tiny
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Post by Tiny on Mar 27, 2016 12:00:28 GMT -5
So that mindset is fine if you have a pension. What % still have that? I think this is the issue for younger people. They really do need to attempt to understand the value of any sort of pension they may have AND how to possibly supplement that with some sort of "retirement" accounts. I'm hearing that some younger workers do have a pension plan but it's not as robust as the olden days ones - they also need to save on their own to compliment the pension. You can't just go on 'auto pilot': "oohhh I have a pension, I have nothing to worry about!!! I'm set for life." My employer offered a pension (and I'm in the plan) but I was also encouraged from day one of employment to sign up for the 401(k) plan - this was 20 years ago. It is a 'nice' pension plan but it's not going to be enough on it's own without some other income besides SS. Atleast not for my circumstances (life long single). I won't have access to a spouse's retirement/pension/ss. To be honest, I'm not sure if my employer offers the pension to new employees. It may just be the 401(k) with an employer contribution (I do not get an employer contribution to my 401(k) because of the pension plan.
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svwashout
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Post by svwashout on Mar 27, 2016 13:15:47 GMT -5
From what I am hearing all these scary things are been talked about for ages. People who are 80 now telling me those articles were published since they could read but however it is going - it is going on...
But when people retire it's a big change to their lifestyle. One point is the lifestyle, being needed by people and expected to be somewhere at a certain time and perform certain functions. The second point is financial. Instead of "making" money and contributing to savings and investments you are now drawing them down. For some retirement is elusive but it's not about the lost wages-- The riddle of the modern economy is not that overworked professionals are miserable. It's that they are not. When did work become a refuge?...www.1843magazine.com/features/why-do-we-work-so-hardIMO still handy to have a well-funded 401k as disability insurance.
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Ombud
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Post by Ombud on Mar 27, 2016 13:59:23 GMT -5
DS is positive his 'pension' will be 2 paid off rentals and RSUs from his job ... 401K is the bonus
DD is pretty much assured that her inheritance is her pension plan
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wanttofire
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Post by wanttofire on Mar 27, 2016 16:01:58 GMT -5
I hope it's not! We are planning to be FI by age 48. Will consider retiring then if we want to. We would have about $2.5MM and a house paid off. That would give us more money than we currently spend.
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