TheOtherMe
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Post by TheOtherMe on Sept 25, 2023 10:17:08 GMT -5
For example, if DH continues to work, and isn't taking Social Security yet, how does Medicare get their money from him? If that happens, they will bill you and you pay quarterly. That is what I had to do until I took Social Security |
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Post by minnesotapaintlady on Sept 25, 2023 10:21:34 GMT -5
If he works for a smaller employer (Under 50 emplyees?) he should ask for a raise to cover his medicare premium, end enroll. The employer’s cost of his insurance will go way down. If you enroll in medicare after 65? 67? And can’t show continuous credible coverage, there is a lifetime penalty, do as soon as he is out of a group plan, he needs to enroll He works for a large employer. Again, we don't have anyone in the family who has signed up for Medicare recently (like, in the last 20 years), so not sure how the process works when you continue working. I guess I'll need to find one of those books (is there a "Medicare for Dummies"?). The only thing I've learned is, to NOT sign up for an Advantage plan, just because they're cheaper. Stick with a Medicare supplement. So, do you go to the Social Security Office to sign up? (That's gonna s*ck if that's how the process goes, because our Social Security office is in one of the worst crime-filled neighborhoods down in the city. We can't even take care of business in the 'burbs.) I work for a large employer. There is a "Required Notice" in our benefits guide about benefits, so I'm assuming your husband probably has access to something similar. This is some of the points from our notice. The formatting might be screwy...
There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage: 1. Medicare prescription drug coverage became available in 2006 to
everyone with Medicare. You can get this coverage if you join a Medicare
Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO
or PPO) that offers prescription drug coverage. All Medicare drug plans
provide at least a standard level of coverage set by Medicare. Some
plans may also offer more coverage for a higher monthly premium. 2. [Company Name Redacted]. has determined that the prescription drug
coverage offered by the BlueCross BlueShield of Texas and Kaiser
Permanente plan(s) is, on average for all plan participants, expected to
pay out as much as standard Medicare prescription drug coverage pays
and is therefore considered Creditable Coverage. Because your existing
coverage is Creditable Coverage, you can keep this coverage and not pay
a higher premium (a penalty) if you later decide to join a Medicare drug
plan. When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare
during a seven‑month initial enrollment period. That period begins three months
prior to your 65th birthday, includes the month you turn 65, and continues for the
ensuing three months. You may also enroll each year from October 15th through
December 7th. However, if you lose your current creditable prescription drug coverage, through
no fault of your own, you will also be eligible for a two (2) month Special
Enrollment Period (SEP) to join a Medicare drug plan.
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current [Company Name Redacted]. coverage will not be affected. For most persons covered under the Plan, the Plan will pay prescription drug benefits first, and Medicare will determine its
payments second. For more information about this issue of what program pays first and what program pays second, see the Plan’s summary plan description or contact Medicare at the telephone number or web address listed herein.
If you do decide to join a Medicare drug plan and drop your current [Company Name Redacted]. coverage, be aware that you and your dependents will not be able to get this coverage back.
When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan?
You should also know that if you drop or lose your current coverage with [Company Name Redacted]. and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may pay a higher premium (a penalty) to join a Medicare drug plan later. If you go 63 continuous days or longer without creditable prescription drugcoverage, your monthly premium may go up by at least 1% of the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium. You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following October to join.
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busymom
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Post by busymom on Sept 25, 2023 12:10:11 GMT -5
For example, if DH continues to work, and isn't taking Social Security yet, how does Medicare get their money from him? If that happens, they will bill you and you pay quarterly. That is what I had to do until I took Social Security In addition to Medicare, were you required to sign up for additional insurance, like Blue Cross/Blue Shield, or United Healthcare/CIGNA, besides the insurance you already had through your employer once you hit retirement age & kept working? I just want to be sure that DH won't be "punished" with additional penalty costs. He has no pension, so our budget is going to be tight once he decides to stop working. (Yes, we've got IRA's, but our retirement isn't going to be as rosy as some folks.) |
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 25, 2023 13:11:11 GMT -5
One thing that freaked me out during the 2008 GFC was in looking at the stock market indices I realized that the market hadn't really gained much of anything over the 2000 high point, just kind of took 8 years to get back to it and then dropped even lower than it had in 2000 crash. I think it took until 2013 to gain new ground. These more recent, more volatile ups and downs may be more predictive of now than 1929, so it is a worrisome thought for those of us that would like to retire sooner rather than <excuse me!> later. But if you bought in 2001 the value increased right? yes - annual rate from 2001 to 2023 is 7.49% way back when, I was just starting out, and I'd feel quite accomplished if I was able to put 100 into the 401k for a pay period. Investing heavily during the GFC did a lot for me. I was able to max the 401k and do roth a few of those years. |
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 25, 2023 13:46:02 GMT -5
as I menitoned, while taking at 62 certainly does protect a lot of the portfolio, the gains in soc sec payments between 62 and 70 are so generous, and permanent (alledgedly!), that it really does make it a tough thing to give up.
I believe that "perfect is the enemy of good". There are eight years between 62 and 70. 64/65/66/67 would all give you bigger soc sec payments than retiring 62!  Yeppers! rough plan fomenting right now is to hit "the number", whatever that is! Then convert to 5 years cash and/or treasuries. This will give 80/0/20 AA. So if stocks go down, draw from case, if stocks go up, draw from stocks and then if at some point stocks are down and cash is gone, file for soc sec benefits? maybe? Finding it all kind of confusing, a bit scary if I make a mistake that ends up with my struggling the last 15 years of life..... so I was reading around about this this weekend, and thought I'd share one nugget with the group. Some clickbaity article 7 reasons not to file for soc sec early, one point I htink I will include in my planning, is that if you do wait to file for a higher benefit, that all your COL adjustments are on the higher benefit amount. I think that is pretty obvious, but after I was looking at the % budget covered at 62 vs 70, it occurred to me that if one could keep some expenses down/more controlled in retirement - so maybe expenses increasing 1.5% when the inflationary adjustment for PIA is 2%, that soc sec could potentially become a larger and larger percentage of annual spending. And this could provide even more portfolio protection down the line. And then that lines up nicely with other strategies to fix costs. I'm hearing more and more people installing solar as a way to fix costs. Used to be people focused on the breakeven part, but these uncertain and inflationary times have people more focused on predictability of future costs. So with paid off house, EV, solar, etc. one might be able to avoid some of those inflationary effects and benefit more from soc sec increases..... |
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haapai
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Post by haapai on Sept 25, 2023 14:14:14 GMT -5
I don't have a plan but at least your question got me to poking around.
My gosh, the retirement calculator attached to my employee benefits is garbage! I can't figure out how to change the projected retirement age from anything except 65. I can't kick it to make it realize that my social security benefits at age 65 are a bit on the high side. It insists that I need 80% of my current income in order to survive, despite the fact that I am putting 15% of gross into a 401(k) and about 8% into an HSA. Is this kind of one-size-fits-all garbage common?
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 25, 2023 14:28:32 GMT -5
What about Phil promising 12% returns?!?!🫨 I think you might need a 30 year time frame for that? But I think he used to say 10 years! from 2000 to now, only 6.9% Closer to 10% for 30 years! but certainly not 12%. I think Phil got pretty blessed with his investing. He put the money in over a very long flat market, and had a lot in there when it took off. 1960 to 1999 was over 12% average for 40 years. Wow. I guess we all missed that boat....
80-99 seems the golden age...averaging over 17% yearly.....for 2 decades? Wow. |
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tallguy
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Post by tallguy on Sept 25, 2023 14:35:59 GMT -5
Yeppers! rough plan fomenting right now is to hit "the number", whatever that is! Then convert to 5 years cash and/or treasuries. This will give 80/0/20 AA. So if stocks go down, draw from case, if stocks go up, draw from stocks and then if at some point stocks are down and cash is gone, file for soc sec benefits? maybe? Finding it all kind of confusing, a bit scary if I make a mistake that ends up with my struggling the last 15 years of life..... so I was reading around about this this weekend, and thought I'd share one nugget with the group. Some clickbaity article 7 reasons not to file for soc sec early, one point I htink I will include in my planning, is that if you do wait to file for a higher benefit, that all your COL adjustments are on the higher benefit amount. I think that is pretty obvious, but after I was looking at the % budget covered at 62 vs 70, it occurred to me that if one could keep some expenses down/more controlled in retirement - so maybe expenses increasing 1.5% when the inflationary adjustment for PIA is 2%, that soc sec could potentially become a larger and larger percentage of annual spending. And this could provide even more portfolio protection down the line.And then that lines up nicely with other strategies to fix costs. I'm hearing more and more people installing solar as a way to fix costs. Used to be people focused on the breakeven part, but these uncertain and inflationary times have people more focused on predictability of future costs. So with paid off house, EV, solar, etc. one might be able to avoid some of those inflationary effects and benefit more from soc sec increases..... The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. |
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 25, 2023 16:06:08 GMT -5
I don't have a plan but at least your question got me to poking around.
My gosh, the retirement calculator attached to my employee benefits is garbage! I can't figure out how to change the projected retirement age from anything except 65. I can't kick it to make it realize that my social security benefits at age 65 are a bit on the high side. It insists that I need 80% of my current income in order to survive, despite the fact that I am putting 15% of gross into a 401(k) and about 8% into an HSA. Is this kind of one-size-fits-all garbage common?
I worry the retirement industrial complex is vested in us working longer and forcing their products on us! Been reading a lot of listicles, case studies, and article with short cases attached. Rarely is anyone encouraged to retire, even on significant savings with pension and soc sec covering a lot of expenses and the person being in their 60s. Its a little bit bizarre really, and I question who these authors think they are serving with this advice. |
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TheOtherMe
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Post by TheOtherMe on Sept 25, 2023 16:39:39 GMT -5
If that happens, they will bill you and you pay quarterly. That is what I had to do until I took Social Security In addition to Medicare, were you required to sign up for additional insurance, like Blue Cross/Blue Shield, or United Healthcare/CIGNA, besides the insurance you already had through your employer once you hit retirement age & kept working? I just want to be sure that DH won't be "punished" with additional penalty costs. He has no pension, so our budget is going to be tight once he decides to stop working. (Yes, we've got IRA's, but our retirement isn't going to be as rosy as some folks.) I was not working. I didn't think I would receive any SS because of the offset for being a federal employee. When I was going to turn 70, they sent a letter telling me that it wasn't going to get any higher so apply. I applied, still thinking I would receive nothing. I do receive a small amount of SS. It covers my Medicare Part B premium and I get a little over $100 per month in cash. I was a federal employee and I have kept the insurance I had when I was working. Now between it and Medicare, the only co-pays I have are for prescription drugs which I also get through BC-BS. They did a survey this year about doing away with covering prescription drugs, so it will be interesting to see if that comes to pass. If I drop my coverage with the federal employee program, I can never get it back so I have to be absolutely certain before I do that. Your DH's situation is not like mine as I was retired and working part-time. You need to contact the people who administer the program and see what happens when age 65 is reached. I don't know the answer. I don't know how much you pay for insurance. My dad received a pension with no COLA. It was $500 per month. For years, health insurance was provided but he did have Medicare Part A and B. After I moved here, they were notified they had to go on to the market and find their own health insurance. So that was a reduction in that small pension. They recommended a certain company they were working with. I researched and found out that there was better coverage for less cost elsewhere. When my parents moved here, the local medical clinic has it's own medical insurance supplement which if you don't travel is by far the best and it's much cheaper. At 65, your DH will need to be covered by something in addition to Medicare. It's a question of whether he has to take Part B at that time. I would not want to be paying for medical costs without some kind of supplement. |
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CCL
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Post by CCL on Sept 25, 2023 19:23:15 GMT -5
so I was reading around about this this weekend, and thought I'd share one nugget with the group. Some clickbaity article 7 reasons not to file for soc sec early, one point I htink I will include in my planning, is that if you do wait to file for a higher benefit, that all your COL adjustments are on the higher benefit amount. I think that is pretty obvious, but after I was looking at the % budget covered at 62 vs 70, it occurred to me that if one could keep some expenses down/more controlled in retirement - so maybe expenses increasing 1.5% when the inflationary adjustment for PIA is 2%, that soc sec could potentially become a larger and larger percentage of annual spending. And this could provide even more portfolio protection down the line.And then that lines up nicely with other strategies to fix costs. I'm hearing more and more people installing solar as a way to fix costs. Used to be people focused on the breakeven part, but these uncertain and inflationary times have people more focused on predictability of future costs. So with paid off house, EV, solar, etc. one might be able to avoid some of those inflationary effects and benefit more from soc sec increases..... The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. Exactly. Keep your expenses low. Before retirement, too, as much as possible. |
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Tiny
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Post by Tiny on Sept 25, 2023 20:15:18 GMT -5
I don't have a plan but at least your question got me to poking around.
My gosh, the retirement calculator attached to my employee benefits is garbage! I can't figure out how to change the projected retirement age from anything except 65. I can't kick it to make it realize that my social security benefits at age 65 are a bit on the high side. It insists that I need 80% of my current income in order to survive, despite the fact that I am putting 15% of gross into a 401(k) and about 8% into an HSA. Is this kind of one-size-fits-all garbage common?
Yes. It's very common. It was very eye opening when I realized that my employer provides useful benefits and useful tools to go with the benefits. |
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Tiny
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Post by Tiny on Sept 25, 2023 20:49:51 GMT -5
It's complicated. I'm past 59.5yo and still employed by employer.
The complication is my pension. I am vested in an old plan that offers the biggest, most generous payout if I work until 62 and then retire. I've got enough years in the pension plan so that doing what I can to stay employed until 62 is worth the effort in achieving an overall guaranteed successful, comfortable, no worry retirement - even if I live to 100yo.
When I turn 60 (soon enough) those 24 months of employment are going to be tough NOT to attempt to stick it out. I feel like I might be shackled to my employer.
But, since my original plans/goals focused on NOT working until I was 62 (or 65) I'm still kind of good to "stop working" anytime. Although I have to admit every month I stay employed means one less month of needing to use "savings" as income (to cover expenses). (If I quit before 62 I need income until I'm 65 when my pension kicks in. I pretty much have enough saved to get me to 65... but like I said every month I stay employed means one additional month of "expenses" stays invested and can be used later
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Pink Cashmere
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Post by Pink Cashmere on Sept 25, 2023 21:00:12 GMT -5
so I was reading around about this this weekend, and thought I'd share one nugget with the group. Some clickbaity article 7 reasons not to file for soc sec early, one point I htink I will include in my planning, is that if you do wait to file for a higher benefit, that all your COL adjustments are on the higher benefit amount. I think that is pretty obvious, but after I was looking at the % budget covered at 62 vs 70, it occurred to me that if one could keep some expenses down/more controlled in retirement - so maybe expenses increasing 1.5% when the inflationary adjustment for PIA is 2%, that soc sec could potentially become a larger and larger percentage of annual spending. And this could provide even more portfolio protection down the line.And then that lines up nicely with other strategies to fix costs. I'm hearing more and more people installing solar as a way to fix costs. Used to be people focused on the breakeven part, but these uncertain and inflationary times have people more focused on predictability of future costs. So with paid off house, EV, solar, etc. one might be able to avoid some of those inflationary effects and benefit more from soc sec increases..... Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. Between what I learned from you all and using the old Microsoft Money software at the time, that used a 60, 10, 10, 10 and 10 rule for budgeting that is what I came away with. That is why I decided to make what I’d planned to be my “starter” home, into my forever home instead, and how I mostly (kinda, well good enough so far) got over my car fever, and still have my ‘03 Honda that I bought new. When I got my mind right, I understood that what I wanted more than anything else, was to be able to retire ASAP, and that desire was even stronger than my desire for a bigger, more fancy house, and even my love of cars. It was a very big deal for me to commit to keeping my “committed” expenses as Microsoft Money called them, as low as possible, with the goal in mind of being able to retire ASAP. If not for that, if I did nothing else, I would’ve bought at least 3 more cars by now, and would be driving a newer car that I really like, with a hefty price tag. So I am grateful that when I learned better I also already had a very reliable car, that I actually still like, that still has enough get up and go that I can pretend she is something she is not, if I punch the accelerator. If not for that, my car fever might have still derailed everything I’ve learned, because I really am a car person. Trying to crunch numbers to figure out my retirement still makes my head hurt, and my heart feel like it’s gonna jump out my chest. So I still avoid it. But in the back of my mind, it’s why I still drive my old Honda, even though I know that realistically, she won’t last forever and I will have to replace her one day, and why I still avoid consumer debt after my whole world fell apart some years ago, and my only debt in the aftermath, is still just the mortgage on my house, which will be paid off around the time I am eligible to retire from my job. I completely understand what you say about the key to not having financial stress in retirement, is more about not needing a lot of extra money, than it is about having a lot of extra money. Having it, but not “needing” it, is key. At least, that’s what I got from your post. If my plans work out, I will retire with a pension, a 401k type account that I can use if I need to, and a supplement from my employer that is loosely equivalent to what I would receive from SS at 62yo, until I am actually 62yo. By then, the mortgage on my house should be paid off, and the taxes and insurance on it, should be my only real committed expenses. I know I will have to replace my 20yo car eventually, but it’s up to me what I choose to do as far as that goes. My mortgage is literally the only debt I have right now. I feel like I have a lot of positive stuff on my side, regarding my retirement, but thinking about it, still makes me very anxious. I plan to grow old with Mister, and as much as I love him, and want to grow old with him, I don’t factor him into my decisions about my retirement. If I did, a lot of things about my retirement would look a whole lot better, but I need to make sure I can be okay regardless of who is in my life, and who does what. So I keep planning accordingly. |
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tallguy
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Post by tallguy on Sept 26, 2023 0:01:25 GMT -5
The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. Between what I learned from you all and using the old Microsoft Money software at the time, that used a 60, 10, 10, 10 and 10 rule for budgeting that is what I came away with. That is why I decided to make what I’d planned to be my “starter” home, into my forever home instead, and how I mostly (kinda, well good enough so far) got over my car fever, and still have my ‘03 Honda that I bought new. When I got my mind right, I understood that what I wanted more than anything else, was to be able to retire ASAP, and that desire was even stronger than my desire for a bigger, more fancy house, and even my love of cars. It was a very big deal for me to commit to keeping my “committed” expenses as Microsoft Money called them, as low as possible, with the goal in mind of being able to retire ASAP. If not for that, if I did nothing else, I would’ve bought at least 3 more cars by now, and would be driving a newer car that I really like, with a hefty price tag. So I am grateful that when I learned better I also already had a very reliable car, that I actually still like, that still has enough get up and go that I can pretend she is something she is not, if I punch the accelerator. If not for that, my car fever might have still derailed everything I’ve learned, because I really am a car person. Trying to crunch numbers to figure out my retirement still makes my head hurt, and my heart feel like it’s gonna jump out my chest. So I still avoid it. But in the back of my mind, it’s why I still drive my old Honda, even though I know that realistically, she won’t last forever and I will have to replace her one day, and why I still avoid consumer debt after my whole world fell apart some years ago, and my only debt in the aftermath, is still just the mortgage on my house, which will be paid off around the time I am eligible to retire from my job. I completely understand what you say about the key to not having financial stress in retirement, is more about not needing a lot of extra money, than it is about having a lot of extra money. Having it, but not “needing” it, is key. At least, that’s what I got from your post. If my plans work out, I will retire with a pension, a 401k type account that I can use if I need to, and a supplement from my employer that is loosely equivalent to what I would receive from SS at 62yo, until I am actually 62yo. By then, the mortgage on my house should be paid off, and the taxes and insurance on it, should be my only real committed expenses. I know I will have to replace my 20yo car eventually, but it’s up to me what I choose to do as far as that goes. My mortgage is literally the only debt I have right now. I feel like I have a lot of positive stuff on my side, regarding my retirement, but thinking about it, still makes me very anxious. I plan to grow old with Mister, and as much as I love him, and want to grow old with him, I don’t factor him into my decisions about my retirement. If I did, a lot of things about my retirement would look a whole lot better, but I need to make sure I can be okay regardless of who is in my life, and who does what. So I keep planning accordingly. First bolded: Yes, that's right. Having a relatively high income but high necessary expenses is more stressful than having a relatively low income but much lower expenses. What happens if that high income is interrupted, or terminated? You can't realistically cut back enough to cover those high necessary expenses, and that can lead to a host of problems. Because of the way I have organized my affairs, my SS check alone covers all of my necessary expenses with another $10,000 or so left over. I have a relatively large house that costs me about the same or less to live in than rent for a one-bedroom apartment would be, and I have a seven-figure investment portfolio that I effectively don't even need. Do I ever feel stress? Not a bit. Do I worry about a 50% market drop? No, I could pretty easily withstand a 70-80% drop. ALL of that is because I have low necessary expenses. An associated benefit, which you may find especially helpful, is that nothing about retirement or finances "makes my head hurt, and my heart feel like it’s gonna jump out my chest." Second bolded: Again, you have it right. The ONLY thing we can truly depend on is what we do ourselves. We live, and plan, and hope, but...life happens, and it rarely consults us in advance to let us know it is going to drop a boulder on us. |
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schildi
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Post by schildi on Sept 26, 2023 0:39:09 GMT -5
We live, and plan, and hope, but...life happens, and it rarely consults us in advance to let us know it is going to drop a boulder on us. So true. |
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djAdvocate
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Post by djAdvocate on Sept 26, 2023 3:01:37 GMT -5
so I was reading around about this this weekend, and thought I'd share one nugget with the group. Some clickbaity article 7 reasons not to file for soc sec early, one point I htink I will include in my planning, is that if you do wait to file for a higher benefit, that all your COL adjustments are on the higher benefit amount. I think that is pretty obvious, but after I was looking at the % budget covered at 62 vs 70, it occurred to me that if one could keep some expenses down/more controlled in retirement - so maybe expenses increasing 1.5% when the inflationary adjustment for PIA is 2%, that soc sec could potentially become a larger and larger percentage of annual spending. And this could provide even more portfolio protection down the line.And then that lines up nicely with other strategies to fix costs. I'm hearing more and more people installing solar as a way to fix costs. Used to be people focused on the breakeven part, but these uncertain and inflationary times have people more focused on predictability of future costs. So with paid off house, EV, solar, etc. one might be able to avoid some of those inflationary effects and benefit more from soc sec increases..... The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. would you agree that health and fitness are part of retirement planning, tallguy? |
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Post by minnesotapaintlady on Sept 26, 2023 12:26:29 GMT -5
I don't have a plan but at least your question got me to poking around.
My gosh, the retirement calculator attached to my employee benefits is garbage! I can't figure out how to change the projected retirement age from anything except 65. I can't kick it to make it realize that my social security benefits at age 65 are a bit on the high side. It insists that I need 80% of my current income in order to survive, despite the fact that I am putting 15% of gross into a 401(k) and about 8% into an HSA. Is this kind of one-size-fits-all garbage common?
I worry the retirement industrial complex is vested in us working longer and forcing their products on us! Been reading a lot of listicles, case studies, and article with short cases attached. Rarely is anyone encouraged to retire, even on significant savings with pension and soc sec covering a lot of expenses and the person being in their 60s. Its a little bit bizarre really, and I question who these authors think they are serving with this advice. You probably should hang out in different groups.  Not retiring will pretty much always be the better financial decision, but so is not having kids or pets. Is your goal to have the greatest possible financial security and die with the biggest pile of money or is it to do other things with your time besides working for a paycheck?
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tallguy
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Post by tallguy on Sept 26, 2023 12:47:40 GMT -5
The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. would you agree that health and fitness are part of retirement planning, tallguy ? Not specifically, but you can probably stretch the definition enough to include them. I consider "retirement planning" to be more about how to finance your lifestyle rather than create your lifestyle. Financially it might be a wash. Either you are healthy enough to do more things for a longer time period which costs you more, or you are not healthy and spend more on medical and associated personal care. And it turns out that unhealthy people can live just as long as (generally) healthy people. I would put health and fitness on the "creating your lifestyle" part of the spectrum. Does that answer the question? |
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souldoubt
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Post by souldoubt on Sept 26, 2023 12:58:25 GMT -5
The big thing is to keep your basic and necessary expenses under control. Discretionary spending almost doesn't matter, really, since you are never forced to do it. My withdrawal rate is currently negative, and I still haven't managed to actually take any money out of my investments in several years of retirement. I will, and I won't worry a bit about doing it, but I haven't had reason to yet. It's nice to have a lot of extra money, and it's nice to be able to spend it on whatever you want. The key to eliminating financial stress, though, is not in having a lot of money. The key is in not needing it. would you agree that health and fitness are part of retirement planning, tallguy ? I've got ~20 years until retirement but seeing the shape my mom and some other individuals are in makes me believe taking care of yourself is the biggest investment you can make. That doesn't mean I'm not saving for retirement or that finances aren't really important but if I get there and I can't do anything after the body goes the mind usually isn't long to follow. My wife works with seniors and the biggest thing she sees is the people who have the best quality of life whether they're 70 or 100 are all active and have their routines. There's some things you can never plan for like bad luck, genetics, etc. but that aside if you're physically and mentally in a good place then you're in good shape to have a higher quality of life in your later years. |
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geenamercile
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Post by geenamercile on Sept 26, 2023 13:34:05 GMT -5
I have 20 years left out of 30 for my pension, that will put me at 62 to "retire" from teaching. Most likely I will just retire from teaching and then sign up to be a sub. Not sure when I will collect SS, I think I will hold out to 70 if I can.
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djAdvocate
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Post by djAdvocate on Sept 26, 2023 15:54:40 GMT -5
would you agree that health and fitness are part of retirement planning, tallguy ? Not specifically, but you can probably stretch the definition enough to include them. I consider "retirement planning" to be more about how to finance your lifestyle rather than create your lifestyle. Financially it might be a wash. Either you are healthy enough to do more things for a longer time period which costs you more, or you are not healthy and spend more on medical and associated personal care. And it turns out that unhealthy people can live just as long as (generally) healthy people. I would put health and fitness on the "creating your lifestyle" part of the spectrum. Does that answer the question? as much as i feel you can or will. it was actually a matter of personal curiosity for me. very few retirees talk about their health. it puzzles me. |
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laterbloomer
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Post by laterbloomer on Sept 26, 2023 16:40:26 GMT -5
Not specifically, but you can probably stretch the definition enough to include them. I consider "retirement planning" to be more about how to finance your lifestyle rather than create your lifestyle. Financially it might be a wash. Either you are healthy enough to do more things for a longer time period which costs you more, or you are not healthy and spend more on medical and associated personal care. And it turns out that unhealthy people can live just as long as (generally) healthy people. I would put health and fitness on the "creating your lifestyle" part of the spectrum. Does that answer the question? as much as i feel you can or will. it was actually a matter of personal curiosity for me. very few retirees talk about their health. it puzzles me. We know different retirees. The ones I know usually start with their health status. Everything else flows from there. |
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tallguy
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Post by tallguy on Sept 26, 2023 16:57:48 GMT -5
Not specifically, but you can probably stretch the definition enough to include them. I consider "retirement planning" to be more about how to finance your lifestyle rather than create your lifestyle. Financially it might be a wash. Either you are healthy enough to do more things for a longer time period which costs you more, or you are not healthy and spend more on medical and associated personal care. And it turns out that unhealthy people can live just as long as (generally) healthy people. I would put health and fitness on the "creating your lifestyle" part of the spectrum. Does that answer the question? as much as i feel you can or will. it was actually a matter of personal curiosity for me. very few retirees talk about their health. it puzzles me. Well, my first response was to wonder if my GF put you up to it, asking me?  I think mostly it is a question of whose definitions we are using. Obviously, everybody wants to be healthy and have the ability to be mobile and active, but that is true no matter what one's level of financial planning and preparation allows. I am thus more likely to consider the two independently of one another. Plan for more than you need and enjoy what comes later as you can. If what you want to do costs more than you can afford, find cheaper activities and learn to enjoy those. Others think about it in terms of their specific activities being a required element of their lives in retirement so must be financially planned for. Either way can work, as long as you are consistent. And as an aside, the old stereotype is that a lot of retirees talk ONLY about their health. "Organ recitals" and all.... |
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 26, 2023 17:29:02 GMT -5
as much as i feel you can or will. it was actually a matter of personal curiosity for me. very few retirees talk about their health. it puzzles me. We know different retirees. The ones I know usually start with their health status. Everything else flows from there.  |
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djAdvocate
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Post by djAdvocate on Sept 27, 2023 3:39:44 GMT -5
as much as i feel you can or will. it was actually a matter of personal curiosity for me. very few retirees talk about their health. it puzzles me. Well, my first response was to wonder if my GF put you up to it, asking me? I think mostly it is a question of whose definitions we are using. Obviously, everybody wants to be healthy and have the ability to be mobile and active, but that is true no matter what one's level of financial planning and preparation allows. I am thus more likely to consider the two independently of one another. Plan for more than you need and enjoy what comes later as you can. If what you want to do costs more than you can afford, find cheaper activities and learn to enjoy those. Others think about it in terms of their specific activities being a required element of their lives in retirement so must be financially planned for. Either way can work, as long as you are consistent. And as an aside, the old stereotype is that a lot of retirees talk ONLY about their health. "Organ recitals" and all.... the reason i ask is that they actually seem like they are in competition. for example, if you expect to die before 65, there is no need for retirement planning. everything else flows from there. |
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 27, 2023 13:39:47 GMT -5
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 27, 2023 13:43:48 GMT -5
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plugginaway22
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Post by plugginaway22 on Sept 27, 2023 15:18:12 GMT -5
Those results are interesting. Regarding low expenses, we retired almost 2 years ago with no mortgage or loans of any kind. So our bare bones annual spend would be close to 50K. But...I do not want to live on 50K bare bones budget. I want to travel, gift to my children, have cash for a big household fix. So to date, we are more like at 75K spend which still seems doable. But wow, watching net worth decline sucks! We retired in Dec 2021, the absolute height of the markets, and so far have not needed anything from invested assets. Pulling from the savings stash only so far!
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Rukh O'Rorke
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Post by Rukh O'Rorke on Sept 27, 2023 17:54:28 GMT -5
Those results are interesting. Regarding low expenses, we retired almost 2 years ago with no mortgage or loans of any kind. So our bare bones annual spend would be close to 50K. But...I do not want to live on 50K bare bones budget. I want to travel, gift to my children, have cash for a big household fix. So to date, we are more like at 75K spend which still seems doable. But wow, watching net worth decline sucks! We retired in Dec 2021, the absolute height of the markets, and so far have not needed anything from invested assets. Pulling from the savings stash only so far! that was a tough month to retire! Good you had cash to tide you over. The market is a fickle friend... |
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