Early Retirement in Maine (for sale, real estate, rent)

[irishcopper]

My employer has offered me an early retirement and I've been considering accepting it and moving back to Maine after being "away" for many years. At this point in my life I'd like to return to a simpler way of life. Rather than attempt to seek another career I'd like to pursue my creative dreams and be free to paint, sculpt and write. I'd like to wake up in the morning and hike, trail run and fish in the summer and snowshoe or XC ski in the winter. My preference would be to work part time only if absolutely necessary.

Like many Americans my financial portfolio tanked last year so I'll be living soley off my annunity which is roughly $2200.00 a month after taxes until the stock market rebounds. I have virtually no consumer debt, my employer will continue to pay for my medical insurance and I have some cash to put down a deposit on a small home for my dog and I.

I've been looking at real estate in Maine and there seems to a lot of property for sale at a reasonable price. I know that it's impossible for someone else to gauge what I consider a decent standard of living, but is $27K after taxes a realistic income to live well on in rural Maine? It certainly wouldn't go far on the West Coast or even in most of Flordia, but unless I'm overlooking high utilities, taxes or some hidden costs it seems like my annuity would provide me a reasonable income. With the exception of southeast and much of coastal Maine the cost of living appears to be within my income bracket.

Any insight or personal experiences would be appreciated. Thanks!

[flycessna]

if you accepted the retirement what are the opportunties for you to return to work in the same field? How much less would you make starting over in the same career somewhere else? Would you lose your retirement if you returned to work? What if after a year you hated being retired, do you have a plan?

The whole thing is completely subjective on weather or not $2200 bucks a month is enough to live on. so I would just really look at weather or not your really ready for retirement and what that entails. For me I would look at what I was making, compare that to what they are offering me plus how much I could make if I returned to work in the same field for another employer.. If it came out I didn't have anything to lose then I might consider it. On more thing is how much more you would make in retirement if you stay working for another 3-5 years ect.

[Northern Maine Land Man]

By Jove, He's rich!

With your lifestyle you'll do fine in Northern Maine.

[Nor'Eastah]

I agree that $2200 a month would enable a comfortable, but simple retirement in Maine, if you were to keep consumption down. That is true for TODAY. In another 2-3 years, what seems comfortable, even doable today, could represent poverty as time goes on. By "early retirement", I assume that you are younger than 65 years old.

I haven't known one retiree who, after retiring in what he/she felt was "comfortable", did not comment after 2-3 years, that they "had no idea where all the money went". The answer is inflation. After 5-6 years, most say that they "have no money". This seems to be a near-universal occurrence among the middle classes, retiring in their 60's or younger.

In your case, you already admit that the amount you have to retire on is limited, whereas so many had felt that their resources were more than ample. Do not count on finding work - even part-time - in Maine (or anywhere else, for that matter). Unemployment has not hit its peak yet, and as a lagging indicator, will not recover as quickly as the economy in general - whenever the economy recovers. Be very careful here! The state of Maine is not known for having a thriving work market even in good times.

Another thing to consider is that you are contemplating the purchase of a home with a mortgage, in a time when real estate has not yet bottomed. If you end up making a mistake, it will be very difficult to unload that property in this market, and you will not be able to stop making the payments.

My advice, for what it's worth, is for you rent for awhile, to see how your finances hold up, and if you really like being retired. That way, you would not be making any real investment, and could go "back to being away" (where more jobs are) if you change your mind. Sorry if all this sounds financially complex, but I think you need to think all this over more carefully.

And while you are doing it, forget about the hiking and skiing and all the rest. That has nothing to do with the real issue at hand: survival in a situation where you would have less control over your life financially than you have now.

[JC3]

Best advice is to see a financial planner...one who is reputable and can do a complete analysis for what you are looking for and want to do. There are some good ones out there who are willing to do this at no charge. Most people think they will be able to do what they want but when it is put down in black and white and they hear, you can't retire and live the way you are looking to, it bursts some bubbles.

It is not something one should be doing at the last minute but if that is how it is happening and you have no outstanding debt, you may be able to figure out your own budget requirements and see what you figure it will take you to live on. If finding another job is not an issue, some good time alone to put things down on paper and see where you would stand after utilities, food, rent/mortg..etc is pretty easy to do. Factor in taxes, vehicle registrations, insurance costs and you can get a pretty good idea what is doable.

Good luck and I hope you find it will be something within your means to do.

[irishcopper]

Thanks for all of the words of wisdom in your replies. I will consult my financial planner and see what he/she thinks. I'm a pretty methodical person and learned during my military career to plan several contingency plans for everything!

[mainebrokerman]

sounds like you have preplanned well, no debt,

i believe you could do well in maine!!!

[BoundtofindME]

You can do it with no problem, especially with your medical covered and no debt. Welcome to the Maine forum!

[Maineah]

Not in Southern Maine! $2200 a month won't buy your food, gas, and bar tab. Let alone your rent, heating and insurances. You'd be in a tent around here.

[forest beekeeper]

Originally Posted by irishcopper

My employer has offered me an early retirement and I've been considering accepting it and moving back to Maine after being "away" for many years. At this point in my life I'd like to return to a simpler way of life. Rather than attempt to seek another career I'd like to pursue my creative dreams and be free to paint, sculpt and write. I'd like to wake up in the morning and hike, trail run and fish in the summer and snowshoe or XC ski in the winter. My preference would be to work part time only if absolutely necessary.

My employer booted me out onto pension when I was 42.

The norm among my peers is to job hop at that point and to stay in the 'field' doing professional work. But I wanted to go for a simpler life, as you say you want to do.

We came to Maine, and we love it.

... Like many Americans my financial portfolio tanked last year so I'll be living soley off my annunity which is roughly $2200.00 a month after taxes until the stock market rebounds. I have virtually no consumer debt, my employer will continue to pay for my medical insurance and I have some cash to put down a deposit on a small home for my dog and I.

I've been looking at real estate in Maine and there seems to a lot of property for sale at a reasonable price. I know that it's impossible for someone else to gauge what I consider a decent standard of living, but is $27K after taxes a realistic income to live well on in rural Maine?

Good God yes. er, uh, I mean, well yes I think that should do.

I wish my pension were as high as that.

The cost-of-living that we are experiencing here in Maine, is significantly lower than every place where we had lived previously. For us, it is much cheaper to live in Maine than stateside West Coast or Lower East Coast.

... It certainly wouldn't go far on the West Coast or even in most of Flordia, but unless I'm overlooking high utilities, taxes or some hidden costs it seems like my annuity would provide me a reasonable income. With the exception of southeast and much of coastal Maine the cost of living appears to be within my income bracket.

Any insight or personal experiences would be appreciated. Thanks!

You seriously need to come to Maine and to look around.

Check out every region, every corner of Maine.

Welcome