How the hell are we supposed to retire?
- Thread starter Red Mosquito
- Start date
Dave Taylor
Rex kwan Do
you may be the exception.
rick81721
Lothar
Probably true these days. But at least for me, had I bounced around alot it's likely I wouldn't be in the position I'm in now where i can retire later this year.
15 years in June
its a generational thing (rick & i are the last of the baby boomers...) - there werent as many active recruiters moving people around in the 80s/90s.
Also the lure of getting in at the beginning of a start-up was not as great. They were not well funded, and
was a huge risk. 401K vs pension made a major change, as did the move to a more educated workforce in
all areas (remember it was big to graduate HS not so long ago)
Try these books
The Organization Man - 1956
Company Man: The Rise and Fall of Corporate Life - 1996 (this is somewhat a follow-up)
i haven't read
The Company: A Short History of a Revolutionary Idea - 2002
but it maybe on the radar now - found it while trying to find the years on the others.
Red Mosquito
Formerly RLB the Scrapple Boy
11 years here, feels like 1100.
rick81721
Lothar
Wow you're a sorta youngish guy. First job out of college?
2nd but the 1st was in college and just out of college. they continue to price me out of the market and I continue to move up, so have not had a reason to leave
rick81721
Lothar
I went through 2 jobs quickly before ending up where I am now. First was 2.5 year stint at a non-profit research center in philly, second 2 years at an industry job in Chicago.
Ride your bike a lot and treat your body like your most valuable asset, because it is. Eat like your body is a temple, rest like it matters, love like your life depends on it.
I have been working with an Edward Jones guy for 15 yrs. I just keep plugging away and things seem to average nicely.
I live below my means and have no car payment and a lower mortgage payment than I could afford.
I tend to spend my $ in experiences vs things. I have had little success in buying any "thing" that had given long term happiness. (My KTM is an exception).
Keeping up with the joneses is what kills us. They are probably overextended anyway.
My hopes of retirement are to live somewhere where land is cheap and plentiful. Thinking of building a 200+ mile trail system that is specifically for mtbs and motos. Hiking will be illegal. Horses by special permission and a heavy fee.
I have been working with an Edward Jones guy for 15 yrs. I just keep plugging away and things seem to average nicely.
I live below my means and have no car payment and a lower mortgage payment than I could afford.
I tend to spend my $ in experiences vs things. I have had little success in buying any "thing" that had given long term happiness. (My KTM is an exception).
Keeping up with the joneses is what kills us. They are probably overextended anyway.
My hopes of retirement are to live somewhere where land is cheap and plentiful. Thinking of building a 200+ mile trail system that is specifically for mtbs and motos. Hiking will be illegal. Horses by special permission and a heavy fee.
adogg
Well-Known Member
Excellent list. One of the fundamentals is staying out of debt. Don't try to keep up with other people. Buy good quality products that make you happy, not to impress your neighbor. Life can throw you many curve balls but Johnny hits it on the head with some things you can control in your life.
giff06
Well-Known Member
Good plan there John. It worked for Pat and I. Both retired going on 10 years now. Hope you stick to it and it works out for you and family.
Rusty
Well-Known Member
20 in June for me...get me the f outta here...
Pay yourself first is best, work and save a lot. Don't buy useless stuff. Hope for long lost rich uncle inheritance.
rick81721
Lothar
Red Mosquito
Formerly RLB the Scrapple Boy
Good stuff, thanks. I started jotting down some numbers and coming up with a plan. I still need to cover a few bases but there's some comfort in seeing numbers adding up. With 25+ years to go there's time to tweak it along the way and make sure I stay on track.
so i'm looking at social security. I do think it will still be around.
I've heard so much from my friends on how they were told to defer - while everyone's situation is different, i'm assuming that my SS will be taxable, as it will not be my only income.
There may be some years where you can play the tax avoidance game, but hopefully not (i'd like to pay $1M a year in taxes, cause that means there is some serious coin coming in - ain't happening, but we can dream)
i picked these ages as 62, 67, 70, "first eligible", "full retirement","max benefit" - note that the benefit is calculated at the month level, so collecting at 63, would produce more $$ than at 62.
You can get your estimates on the social security website.
If the money is needed, then start collecting - it wouldn't make any sense to go in debt, or deplete your savings for a higher SS benefit.
So you ask "why?" start collecting asap.
Cause no matter when you start collecting after age 62, you'll be 80ish before the break-even point of waiting. And if this is the difference between being
cash flow positive vs negative, it is even more of a reason. If you are cash flow positive, that money goes in the bank, and grows. This may mean the break-even point is even farther out.
(i don't feel like doing the FV of recurring payments calculation, maybe @clarkenstein - it is built into sheets, but meh)
in this example, i've used some exemplary income numbers - by starting the cash flow at 62, then looking at the total collected, and dividing by the monthly income gain by waiting,
One can see how many years it will take to "catch up" - and their age. if you run out of money at 80, live with your grandchildren, and give them the ss check😀
I've heard so much from my friends on how they were told to defer - while everyone's situation is different, i'm assuming that my SS will be taxable, as it will not be my only income.
There may be some years where you can play the tax avoidance game, but hopefully not (i'd like to pay $1M a year in taxes, cause that means there is some serious coin coming in - ain't happening, but we can dream)
i picked these ages as 62, 67, 70, "first eligible", "full retirement","max benefit" - note that the benefit is calculated at the month level, so collecting at 63, would produce more $$ than at 62.
You can get your estimates on the social security website.
If the money is needed, then start collecting - it wouldn't make any sense to go in debt, or deplete your savings for a higher SS benefit.
So you ask "why?" start collecting asap.
Cause no matter when you start collecting after age 62, you'll be 80ish before the break-even point of waiting. And if this is the difference between being
cash flow positive vs negative, it is even more of a reason. If you are cash flow positive, that money goes in the bank, and grows. This may mean the break-even point is even farther out.
(i don't feel like doing the FV of recurring payments calculation, maybe @clarkenstein - it is built into sheets, but meh)
in this example, i've used some exemplary income numbers - by starting the cash flow at 62, then looking at the total collected, and dividing by the monthly income gain by waiting,
One can see how many years it will take to "catch up" - and their age. if you run out of money at 80, live with your grandchildren, and give them the ss check😀
Last edited:
Blair
Well-Known Member
Good point, by the time I get to retirement the age will probably be 75 so get it while you can. I wish I could opt out entirely, because the whole ss system is a cluster.
@fidodie the present value of future cash flows calc for social security is insane. The WORST case scenario for SS death is 2034. That's if the trust funds dry up. But there still will be money coming in from payroll taxes.
Main issue is low paid folks don't get offset their drain. We need population growth and tax rate increases to offset the issues - which mainly is we are reducing our principal like the nation is going to retire at some point.
Main issue is low paid folks don't get offset their drain. We need population growth and tax rate increases to offset the issues - which mainly is we are reducing our principal like the nation is going to retire at some point.