Retirement

[muppy]

retirement has taught me a lot of things. Im into lists so I will jot down some facts

 

1. Dont forget to include health care/insurance for long term diability so your estate isnt descimated by a medical issue or nursing home care costs..think about it.

2. Find a financial planner you trust and they will lay out your financial options based in all the variables within their expertice and Your goals...a good one will be invaluable/

3. dont forget to budget stuff like future car purchases or vacation wants/needs into the financial equation

4. try to payoff credit cards and be smart about your lifestyle/budget and live within your means

5. consider a move for tax reasons.......a lot of people do but we're staying put it just made more sense for us plus we love san diego

6. live within your means NOW so ypu can afford to save for retirement as your work year dwindle

7. consider downsizing

 

 

anyway just some thoughts off the top of my head. as far a SSI benefits I would advise to wait until you absolutely need the SSI money to live and wish to retire for whatever reason....you also must weigh the benefit of working and its physical toll on you vs retiring with less  SSI money but at an earlier age...we retired and took SSI benefits early to be retired and enjoy life earlier but our portfolio was also in good shape so we were really blessed. 

 

all very important thoughts

Edited November 13, 2021 by Muppy

[mead107]

Invest in meadcoins 

 

[Augie]

33 minutes ago, Muppy said:

retirement has taught me a lot of things. Im into lists so I will jot down some facts

 

1. Dont forget to include health care/insurance for long term diability so your estate isnt descimated by a medical issue or nursing home care costs..think about it.

2. Find a financial planner you trust and they will lay out your financial options based in all the variables within their expertice and Your goals...a good one will be invaluable/

3. dont forget to budget stuff like future car purchases or vacation wants/needs into the financial equation

4. try to payoff credit cards and be smart about your lifestyle/budget and live within your means

5. consider a move for tax reasons.......a lot of people do but we're staying put it just made more sense for us plus we love san diego

6. live within your means NOW so ypu can afford to save for retirement as your work year dwindle

7. consider downsizing

 

 

anyway just some thoughts off the top of my head. as far a SSI benefits I would advise to wait until you absolutely need the SSI money to live and wish to retire for whatever reason....you also must weigh the benefit of working and its physical toll on you vs retiring with less  SSI money but at an earlier age...we retired and took SSI benefits early to be retired and enjoy life earlier but our portfolio was also in good shape so we were really blessed. 

 

all very important thoughts

 

My mother is subsisting now and regretting taking her SSI early. She didn’t REALLY need it then, but it seemed wise to take it in her mind. She turns 94 in a couple weeks and regrets many of her decisions, especially this one. People live longer these days, so if you can, wait until you really need it. 

 

For us, I never counted on it still being around, to be honest. It will be nice to have if and when it happens. 

[mead107]

6 minutes ago, Augie said:

 

My mother is subsisting now and regretting taking her SSI early. She didn’t REALLY need it then, but it seemed wise to take it in her mind. She turns 94 in a couple weeks and regrets many of her decisions, especially this one. People live longer these days, so if you can, wait until you really need it. 

 

For us, I never counted on it still being around, to be honest. It will be nice to have if and when it happens. 

Living to 94 is beyond life expectancy. 
take it early is normal a good thing 

[Augie]

1 minute ago, mead107 said:

Living to 94 is beyond life expectancy. 
take it early is normal a good thing 

Her mother and grandmother made it to 92. My dad made it to 89. People are living longer. It doesn’t matter that much to me as I’m not counting on SSI to be around as a primary source of income. I’m 62 and don’t need an extra income stream at this point as the wife is still working. I’ll wait, but that’s just me. People need to do what is best for their personal situation, and I won’t argue against that. 

[Process]

22 hours ago, Mark80 said:

There are competing theories on this.  Some believe that you should not have any debt (except possibly a mortgage) before you save any money beyond an emergency fund.  That is not as common, but provides a psychological element to it which helps you cut back on you spending, create good habits etc. and then when you don't have the debt any longer you'll have plenty of extra money to invest heavily.

 

Most folks, however, invest while still having other debts.  Me included.  Definitely best practice to at a bare minimum get your employer match on the 401k.  Beyond that I prefer Roth IRA, that way you know exactly what you have and won't have to pay taxes on it in the future.  I believe Vanguard is the best, Fidelity is also very highly thought of, I just like the Vanguard Funds personally.  Do try to be an expert investor, just buy Mutual Funds and let the professionals do the work for you.  Buy it and don't even look at it, just let it do its thing.

 

Recommendation is 10% of income towards it.  But the more you can save now, the more time it has to earn and compound.

Very stupid to have any equity in a house right now with interest rates as low as they are. Assuming you can get a good rate. 

[Chef Jim]

13 hours ago, T&C said:

That's also a huge amount of years when you reach that age where you just sacrificed a lot of years just "waiting", also doesn't include the SS money you would have already had if you had claimed at 62. This is what I mentioned above. Too many moving pieces really to actually define it... health, mobility, home situation, etc on and on. 

 

Of course there are a lot of variables but if you have good health, longevity and good savings to live off of until 70 waiting is a great option.  Keep in mind your survivor benefits are based on when your spouse claims too. 

 

Claiming at 62 rarely makes sense.  Keep in mind not only will your benefit be permanently reduced if you claim prior to your FRA but if claim at 62 and continue to work your benefit will be reduced even more.  Here is a great article on it.  I've worked with Mary Beth. She is amazing.

 

https://www.newretirement.com/retirement/getting-the-most-from-social-security/

36 minutes ago, Process said:

Very stupid to have any equity in a house right now with interest rates as low as they are. Assuming you can get a good rate. 

 

Wait are you suggesting people cash out the equity in their homes??  

[EmotionallyUnstable]

19 hours ago, Johnny Hammersticks said:

I’m probably going to die in my 50’s, so I’m not too terribly worried about it.  Genetics are a b**ch.  

 

State pension that pays 60% of the avg of my highest 3 years’ salary, 403b with annual $5500 employer contribution plus what’s automatically deducted from my paycheck, and loads of life insurance.  Wife and I currently have about 3 months of salary in savings...working on that.  At least my kids should be in good shape 🤷🏾‍♂️

Any age factor to this, no requirement for number of vested years?

[EmotionallyUnstable]

I am intending to use the three-pronged system: 

 

Pension, Investments, Social Security.

 

My wife (31) and I (30) are both state employees, and can retire at 55. However, our retirement tier for said pension substantially improves in value for each year past 55 that we vest (approx 8% additional per year of the average of our highest 3 years salary, maxed at 63 years of age). 
 

We have separate, aggressive 403B accounts that we have been contributing to since our mid 20s in tax-sheltered deductions from our checks. We also recently opened a Roth IRA (in her name, of course!). Additionally we have the “rainy day fund” in our personal savings and obviously account for home improvements, vacations, surprise expenses, etc.
 

Aside from the mortgage at 3.6% interest (we owe approx 188k over the next 25 years), we have no debt aside from the car payment and credit cards, which we clear off in full each month. 
 

The one area we are knowingly missing is the life insurance, which now that my daughter is 6m and we have a little extra income, we are going to secure in the coming months.

 

We don’t live a lavish lifestyle, but live comfortably, afford what we want to a certain degree, eat and drink well and take the occasional family trip. 
 

One day I want a vacation home (not sure where) and in 30 years I am hoping that Roth IRA will the down payment on the home. Other than that, I plan to live easy and keep it simple and hopefully celebrate a few super bowl victories along the way

Edited November 13, 2021 by EmotionallyUnstable

[ExiledInIllinois]

16 hours ago, Muppy said:

retirement has taught me a lot of things. Im into lists so I will jot down some facts

 

1. Dont forget to include health care/insurance for long term diability so your estate isnt descimated by a medical issue or nursing home care costs..think about it.

2. Find a financial planner you trust and they will lay out your financial options based in all the variables within their expertice and Your goals...a good one will be invaluable/

3. dont forget to budget stuff like future car purchases or vacation wants/needs into the financial equation

4. try to payoff credit cards and be smart about your lifestyle/budget and live within your means

5. consider a move for tax reasons.......a lot of people do but we're staying put it just made more sense for us plus we love san diego

6. live within your means NOW so ypu can afford to save for retirement as your work year dwindle

7. consider downsizing

 

 

anyway just some thoughts off the top of my head. as far a SSI benefits I would advise to wait until you absolutely need the SSI money to live and wish to retire for whatever reason....you also must weigh the benefit of working and its physical toll on you vs retiring with less  SSI money but at an earlier age...we retired and took SSI benefits early to be retired and enjoy life earlier but our portfolio was also in good shape so we were really blessed. 

 

all very important thoughts

#1 reason people file bankruptcy = Medical bills.

 

As a Fed... I was reading this... States that don't tax your retirement.  Some surprising ones here.  Retirement will be three prong.  Pension (w/early SS supplement before 62 w/30 years in), TSP(401k), and SS (62+, your choice):

 

https://hawsfederaladvisors.com/the-states-that-wont-tax-your-fed-retirement-income/

 

SS:

"...The good news however, is that most states don’t tax your Social Security benefits. There are just 13 states that DO and they are the following: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia."

 

TSP (401k) Distribution:

"...And while most states tax TSP distributions as well, these 12 DON'T: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming, Illinois, Mississippi and Pennsylvania."

 

Pension:

"...But again, there are many states (14 to be exact) that DO NOT tax pension income at all. Here they are: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming New Hampshire, Alabama, Illinois, Hawaii, Mississippi, and Pennsylvania."

 

Edited November 13, 2021 by ExiledInIllinois

[boater]

A timely topic for me as I just unretired. I start the new job Monday. I am not looking forward to it.

 

I unretired because Bidenflation was gnawing away at my pension to the tune of an extra $500 month. Now with a job I can loosen the financial belt a little. I can even build up my 401K for Retirement Part Two. I plan on doing Vanguard ETFs in the S&P500 and Precious Metals.

 

Crypto currencies have my eye. But I'm unconvinced.

[sherpa]

1 hour ago, ExiledInIllinois said:

 

SS:

"...The good news however, is that most states don’t tax your Social Security benefits. There are just 13 states that DO and they are the following: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia."

 

 

 

Depending on income, Social Security is taxed at the federal level, regardless of state of residence.

I would never base my retirement location on the ability to avoid relatively minor state income tax.

[ExiledInIllinois]

6 minutes ago, sherpa said:

 

Depending on income, Social Security is taxed at the federal level, regardless of state of residence.

I would never base my retirement location on the ability to avoid relatively minor state income tax.

That's what the article says... Fed will tax it.

 

But the plebs DO have to consider some of those things, they're not the big shots making big bucks. The world needs poor pensioners too making smart choices with their money. 😏 

 

"...And there's winners, and there's losers but they ain't no big deal
'Cause the simple man baby pays the thrills, the bills and the pills that kill..."

 

 

 

 

[Greybeard]

      When I looked at the option of drawing SS at 66 or going to 70, it worked out that the breakeven year on total payouts was when I would be 76.   If I died before 76, taking it at 66 was the better option, if I lived past 76 the better option was waiting to 70.  That analysis did not include making any money on the money I took earlier.   I took the 66 option in part because I am daring fate to screw me money-wise by allowing me to live longer.   If you are close to retirement I would recommend a program by Larry Kotlikoff.  If you have a lot of options, that program will really help.  The program was called something like "Max my social security."

I liked it so much I purchased my sister a copy of it just before she retired.

 

     I believe in Gold/Silver long term.  I have some bullion but I also have a position is PSLV.   In 2020 I had a position in SLV which is a silver ETF, but having read many times, if you don't have possession of it, you don't own it, I started switching from SLV to PSLV.  SLV is an ETF which is highly leveraged.  PSLV is by Sprott and the prospectus says they have bullion on hand for all they sell.  At minimum, if retirement is off a few years, you should have some for diversification.

    On the comment about Gold/Silver underperforming compared to the stock market, keep in mind what every advisory says, "Past performance is not a guarantee of future performance."  This bull market is on an unprecedented 11 year run.  It will end someday.

 

 

 

    

[ExiledInIllinois]

14 minutes ago, Greybeard said:

      When I looked at the option of drawing SS at 66 or going to 70, it worked out that the breakeven year on total payouts was when I would be 76.   If I died before 76, taking it at 66 was the better option, if I lived past 76 the better option was waiting to 70.  That analysis did not include making any money on the money I took earlier.   I took the 66 option in part because I am daring fate to screw me money-wise by allowing me to live longer.   If you are close to retirement I would recommend a program by Larry Kotlikoff.  If you have a lot of options, that program will really help.  The program was called something like "Max my social security."

I liked it so much I purchased my sister a copy of it just before she retired.

 

     I believe in Gold/Silver long term.  I have some bullion but I also have a position is PSLV.   In 2020 I had a position in SLV which is a silver ETF, but having read many times, if you don't have possession of it, you don't own it, I started switching from SLV to PSLV.  SLV is an ETF which is highly leveraged.  PSLV is by Sprott and the prospectus says they have bullion on hand for all they sell.  At minimum, if retirement is off a few years, you should have some for diversification.

    On the comment about Gold/Silver underperforming compared to the stock market, keep in mind what every advisory says, "Past performance is not a guarantee of future performance."  This bull market is on an unprecedented 11 year run.  It will end someday.

 

 

 

    

That's why I am going at 56.  If I stay, I'd make more but won't get the free money in the pension supplement to 62.  I figured it out... About 13 years till I break even if I waited to 62 for the 10% pension raise... By then I will be 75, what good is it waiting.  In my late 50s... I can always do something else. 

 

At 62, the supplement will end... Take a hit there, maybe even wait to collect SS for another 5 years... ??

 

And swing-shift is killing me anyway.   Why add another 5 years of that. 

Edited November 13, 2021 by ExiledInIllinois

[notwoz]

Save as much as you can. Spend as little as you can. Vanguard or Fidelity are good places to start stashing your money.

[Johnny Hammersticks]

18 hours ago, EmotionallyUnstable said:

Any age factor to this, no requirement for number of vested years?

 

Yeah, it’s 30 years or there’s a formula that takes into account your age and years vested.  I forget the exact details, but I figured it out years ago and I’ll have to work until I’m 62 or 63 to collect my full benefits.

[EmotionallyUnstable]

46 minutes ago, Johnny Hammersticks said:

 

Yeah, it’s 30 years or there’s a formula that takes into account your age and years vested.  I forget the exact details, but I figured it out years ago and I’ll have to work until I’m 62 or 63 to collect my full benefits.

Are you NYSTRS tier 6?

[Johnny Hammersticks]

16 minutes ago, EmotionallyUnstable said:

Are you NYSTRS tier 6?

 

Vermont

[MarkyMannn]

Invest in growth and technology funds. Also if stocks are part of your game, subscribe to Motley Fool. I've both TDA & Fidelity.  IDK crypto will grow but be careful it's volatile. I took SS at 65 and full benefits was 66 &4 months. The crossover was 80. Screw that.