What do you do with your money when you retire?

[mathjak107]

Originally Posted by SportyandMisty

My personal view (not shared by many) is as we age the following risks become more pronounced than many models assume:

* risk of longevity
* cost of healthcare risk
* cost of assisted living risk
* cost of nursing home risk
* cost of Alzheimer's care risk

Put them altogether and there is risk of outliving our assets. This risk has always been there, of course, but my personal view (again, not shared by many) is these risks are higher than people generally model. But that's just me. I guess I need something to worry about.

we went with a long term care policy just so we could mitigate those potentially devastating risks down to more manageable levels .

not much sense in developing a nice pile of assets and then leaving them exposed in case you are the unlucky statistic . that is why we have all sorts of insurance that protects us against devastating outcomes even though the chances are quite slim that it will happen .

we only have 2 outcomes , things happen to us or they don't .

[mathjak107]

Originally Posted by reneeh63

It's really hard to make your money last if you put it in CDs - at current rates at least! I'm thinking about using a reverse glide path - lower just before and in early retirement but upping equities later to be sure the money lasts.

thats how i did it , i reduced a few years earlier before retirement from 80-100% equity's to 38- 40% . eventually i will bring it up to 50%.

so far i am glad i did with this being my 2nd year in retirement .

[reneeh63]

Originally Posted by mathjak107

thats how i did it , i reduced a few years earlier before retirement from 80-100% equity's to 38- 40% . eventually i will bring it up to 50%.

so far i am glad i did with this being my 2nd year in retirement .

I think it'll be hard to force myself to do that after all these years really trying for the most returns and intentionally downplaying the inherent risk. Not sure if I can go all the way down to 40% though...I just went from essentially 100% to 70%...maybe down to 50% in a few more years.

How do you decide when to start ramping back up after being retired? This is a pretty new strategy with not a lot of details in the literature yet.

[mathjak107]

it is recommended you ramp up very slowly at 2% a year until you hit goal . you need to make sure you develop an upside cushion before risking a bigger downside fall

[jr6035]

Originally Posted by Southern man

Goodness , you must be a celebrity.

List Of Celebrities Who Will Leave The U.S. If Donald Trump Becomes President – Jon Stewart, Whoopi Goldberg, Al Sharpton, More

I bet they're packing as we speak.

[rjm1cc]

Originally Posted by mathjak107

i would sooner use tax free life insurance if that was a goal then trying to use an annuity product .

you can still use a trust to control the outflow .

I was thinking of using cash from the estate to buy an annuity. The annuity would hand the money out monthly. No selling of the annuity.

[Minntoaz]

Originally Posted by SportyandMisty

My personal view (not shared by many) is as we age the following risks become more pronounced than many models assume:

* risk of longevity
* cost of healthcare risk
* cost of assisted living risk
* cost of nursing home risk
* cost of Alzheimer's care risk

Put them altogether and there is risk of outliving our assets. This risk has always been there, of course, but my personal view (again, not shared by many) is these risks are higher than people generally model. But that's just me. I guess I need something to worry about.

Quite frankly I assume you better have an enough to live until your 105 (just to play it safe). It happens frequently, we are not only living until our 80's anymore. Also it's important to follow a healthy lifestyle to mitigate the high healthcare costs (including Alzheimer's and dementia care). There are numerous studies pointing to exercise and an overall healthful diet to help prevent and essentially save an individual millions of dollars from the treatment involved. Of course we aren't God so anything could happen but all we can do is the best with what we've got. Again this is my personal view and I don't expect everyone to share it.

[elliotgb]

Fly, I just received my separation from work back in February, a month short of my 5 year anniversary there. Got a package that did not include med bennies. Age 62 and had intended to go out at the end of April anyway.

Best of luck to you!