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Old 02-22-2013, 10:14 PM
 
Location: Santaluz - San Diego, CA
4,484 posts, read 7,881,766 times
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Quote:
Originally Posted by stoutboy View Post
I read about that guy too, supposedly the SEAL who got bin Laden. I'm not sure what was up with that. The reporter didn't seem to have a clue how the military operates, or how its retirement works, because he portrayed that guy's situation in the worst possible light, and the Navy takes it on the chin. I have no idea why he didn't re-up and finish out his 20. I think there is likely more to the story. The SEAL did seem incredibly clueless about money matters, though, and I remember a lot of enlisted guys just like that back when I was in the service. Sad.

Well, don't get me wrong, I'm certainly glad to have the pension and most of all the health insurance. But who knows how long I'll live after I retire? That's why I'd prefer the million in hand, and hopefully I'll have a good deal more. It's not me making all that money by the way. DW works too.

Yes the guy seemed financially retarded. Who quits with 3 years left to a federal and guaranteed pension? He could have re-upped according to most things I've read and heard. Also he didn't even know he was guaranteed free healthcare for a while by law.

He said he was too tired and wanted to spend more time with his family. But my guess is he probably figured he could have made some lucrative book or movie deal. It was a very poor decision to quit so close, IMHO. But then again I know how dangerous it is. But you'd think the guy that killed Bin Ladin would have been given the chance to retire without going on dangerous missions or in the classroom teaching others. Just seems strange to me.

Stoutboy, I will make you a deal. I will give you a million bucks if you will guarantee me your pension and medical benefits for the rest of my life.
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Old 02-23-2013, 03:03 AM
 
64,778 posts, read 66,270,542 times
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Quote:
Originally Posted by earlyretirement View Post
BINGO!! I pay almost $1,600 a MONTH now for my own insurance for my family. I know many of you that retired early don't have kids or if you do they are out if the house. But for some if us that retired earlier in life and self insured its a nightmare to deal with healthcare costs. And it just keeps going up.

Mathjak nailed it as usual. Once you really take a look at the numbers planning your retirement it's nothing to write home about. And the sad thing is in a few decades retiring as a multi-millionaire might not be anything special either if you are retiring early in life.

I always get a kick out of reading some Money Magazine personal profiles of people that think they are doing great and retiring with $1.5 million or more only to be told by a professional that they won't have enough and need to work beyond 65. It shocks them.

Yeah a million bucks SoUNDS like a lot for retirement but really it's not. That's the sad reality. People are living longer and longer.




MOST people don't retire with the federal government with a generous pension. Pensions are like dinosaurs these days. And don't think that overseas healthcare is always great. I've lived overseas many years. Yes there are excellent options but typically the best healthcare providers are as expensive as the USA.

Yes some counties have socialized medicine and "free" healthcare but you will find out the medical care sucks and the hospitals are disgusting in many of these places.

Sure if I had a pension I'd be singing a different tune on retiring as a millionaire meaning something significant. I would LOVE a pension but like I said.... That is rare these days. Especially for those of us retiring earlier in life.
we were featured in money magazine a few years ago. they wanted to see if their team of pros could improve what i was doing since i am a do it your selfer.

it was alot of fun working with them but the end result except for going back and forth on self insuring on ltc they could not really make much in the way of changes.

anyway the thing folks don't realize is the rules of the game change as you get ready to retire,.

a million bucks is still a lot of money when you can go out there and spend it , you can buy amazing cars , a great house ,etc etc.

but when you need to make it last between 30 and 40 years and generate a safe ,secure , consistant income stream ,well all bets are off.

why? because everything in retirement when you are responsible for your own pay check is based on the success of not running out of money.

no one gets an average return from markets when spending down, the results you get when spending down are all over the place depending on the sequence of your gains and losses.

no one spend 3.5% a year, and everyone gets hit with emergencies and unexpected expenses.

the more you save , the less aggressive you have to invest to get whatever you hope to draw, the more you save the bigger the cushion for the awe craps , the bigger the cushion the more choices you can have later in life about things you want to do for the family ,others or causes you support.


some folks can retire on very little and others need a whole lot. it all depends on lifestyle,stresses and goals in retirement.

it is no different then when we are working. some earn little and some earn large amounts a year and in either case there always seems to be to much month at the end of the money.

sequence and inflation risk are the biggest dangers we face when supporting ourselves. in fact it is said if you get hit with bad years up front in the first 5 years of retirement because of bad markets and are already into spending principal you can easily run out of money.

there is a good chance whatever you thought you would take as a max each year has to take a pay cut that sticks for life.

why do we need so much more extra money for a cushion then we think ?

over the 17-year period from 1987-2003, the S&P 500's average return was 13.47%. It doesn't make any difference if we look at the returns from 1987 to 2003 or from 2003 to 1987.

But when taking withdrawals, the sequence of returns makes all the difference. The same initial capital, the same withdrawal amount, the same returns - but a different sequence produces dramatically different results.

if we take $100,000 portfolio and leave the amount of inflation with the the portfolio to keep it even and spend everything else and all we do is shift the order of gains and losses over those 17 years, the difference is a remaining balance of $76,629 to a deficit of $187,606

is that amazing or what. same exact average return over 17 years. a whopping 13.47% and you could have had a deficit of minus 187,606 just based on the order of things..

that is what the financially ignorant overlook when they throw some average return in a how long will my money last calculator and report back to us.

that is not how life spends or earns and the results are very different from a straighline average.

Last edited by mathjak107; 02-23-2013 at 04:16 AM..
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Old 02-23-2013, 05:23 AM
 
64,778 posts, read 66,270,542 times
Reputation: 43156
Quote:
Originally Posted by earlyretirement View Post
Yes the guy seemed financially retarded. Who quits with 3 years left to a federal and guaranteed pension? He could have re-upped according to most things I've read and heard. Also he didn't even know he was guaranteed free healthcare for a while by law.

He said he was too tired and wanted to spend more time with his family. But my guess is he probably figured he could have made some lucrative book or movie deal. It was a very poor decision to quit so close, IMHO. But then again I know how dangerous it is. But you'd think the guy that killed Bin Ladin would have been given the chance to retire without going on dangerous missions or in the classroom teaching others. Just seems strange to me.

Stoutboy, I will make you a deal. I will give you a million bucks if you will guarantee me your pension and medical benefits for the rest of my life.

boy those benefits can be priceless.

fidelity investments calculated that even a 65 year old couple with medicare will spend close to 240k over their retirement for uncovered health care items. everything from dental to hearing aids to eye glasses are not covered ,

thats is a huge amount but health care costs are out pacing inflation by a huge amount. fidelity says we are on track to have 61% of a social security payment go for healthcare by 2027.

folks do not realize just what a decent retirement will run them. that is evident by all the elderly returning to the work force decades later .

they entered retirement planning by the seat of their pants or with bits and pieces of rules and guidelines they heard but did not understand and under-planned.

i am a big believer in over-planning , i rather have to worry about what to do with more then being a burdeon to my kids because i had less..

http://www.fidelity.com/inside-fidel...are-costs-2012

Last edited by mathjak107; 02-23-2013 at 06:06 AM..
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Old 02-23-2013, 07:43 AM
 
1,862 posts, read 2,879,667 times
Reputation: 2107
Quote:
Originally Posted by earlyretirement View Post
Yes the guy seemed financially retarded. Who quits with 3 years left to a federal and guaranteed pension? He could have re-upped according to most things I've read and heard. Also he didn't even know he was guaranteed free healthcare for a while by law.

He said he was too tired and wanted to spend more time with his family. But my guess is he probably figured he could have made some lucrative book or movie deal. It was a very poor decision to quit so close, IMHO. But then again I know how dangerous it is. But you'd think the guy that killed Bin Ladin would have been given the chance to retire without going on dangerous missions or in the classroom teaching others. Just seems strange to me.

Stoutboy, I will make you a deal. I will give you a million bucks if you will guarantee me your pension and medical benefits for the rest of my life.

I'd sell you my pension for the million in cash today, but not my health insurance.

I really think there is much more to that story that the reporter didn't investigate. I understand how those SEALs' bodies wear out given what they do, but for crying out loud he could've surely gotten a shore assignment that would see him through the final enlistment. Let him hand out towels at the base gym for pete's sake.
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Old 02-23-2013, 10:22 AM
 
Location: Santaluz - San Diego, CA
4,484 posts, read 7,881,766 times
Reputation: 1960
Quote:
Originally Posted by stoutboy View Post
I'd sell you my pension for the million in cash today, but not my health insurance.

I really think there is much more to that story that the reporter didn't investigate. I understand how those SEALs' bodies wear out given what they do, but for crying out loud he could've surely gotten a shore assignment that would see him through the final enlistment. Let him hand out towels at the base gym for pete's sake.

Stoutboy,

I'd want BOTH. LOL. You get my point now probably. That guaranteed health insurance benefit you have for the rest of your life is going to be worth a FORTUNE. All your friends that were razzing you for taking a lower paying government job are going to be envying you probably for the rest of your life. Healthcare costs will continue to skyrocket for the foreseeable future. In fact, I'd probably value that health care benefit more valuable than your pension with the way healthcare costs are trending.

As to that SEAL, I'm sure there is more to the story. Absolutely he could have gotten a shore assignment. Especially considering that he is the guy that killed Bin Ladin. No doubt about it. Just poor decision making.

But that goes along with becoming a "millionaire". So many seemingly smart people make VERY poor decisions. Even later in life while they are close to retirement when it's all the more critical they don't make any mistakes. Whether it's doing something foolish like he is doing or having too much of your nest egg in a volatile stock market. Mistakes are made all the time by future retirees.

Mathjak,

WOW. That's great that you were in one of those Money Magazine profiles. I was always curious. How does that come about? Did you contact them or was it a friend of a friend type situation? I always wondered about that with the magazine. I really enjoy reading those profiles.

I totally agree with the points you are making. All spot on target.
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Old 02-23-2013, 10:43 AM
 
1,784 posts, read 2,881,373 times
Reputation: 1242
Quote:
Originally Posted by earlyretirement View Post
Stoutboy,

I'd want BOTH. LOL. You get my point now probably. That guaranteed health insurance benefit you have for the rest of your life is going to be worth a FORTUNE. All your friends that were razzing you for taking a lower paying government job are going to be envying you probably for the rest of your life. Healthcare costs will continue to skyrocket for the foreseeable future. In fact, I'd probably value that health care benefit more valuable than your pension with the way healthcare costs are trending.
Well, "guaranteed" is a relative term as Congress could ultimately do whatever it wanted if the healthcare costs really got out of control.

Current guarantees are no guarantee of future guarantees - I just made that quote up, lol.
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Old 02-23-2013, 10:46 AM
 
Location: Santaluz - San Diego, CA
4,484 posts, read 7,881,766 times
Reputation: 1960
Quote:
Originally Posted by snowdenscold View Post
Well, "guaranteed" is a relative term as Congress could ultimately do whatever it wanted if the healthcare costs really got out of control.

Current guarantees are no guarantee of future guarantees - I just made that quote up, lol.

Yeah. No doubt things could change in the future. Many private pensions plans are underfunded and not what pensioners expected or were planning for or will drastically change in the future.

But honestly, I think having a Federal government pension would probably give me the most security vs. any private employer out there.
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Old 02-23-2013, 11:10 AM
 
1,862 posts, read 2,879,667 times
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Quote:
Originally Posted by snowdenscold View Post
Well, "guaranteed" is a relative term as Congress could ultimately do whatever it wanted if the healthcare costs really got out of control.

Current guarantees are no guarantee of future guarantees - I just made that quote up, lol.
You're right, there is no such thing as a guaranteed guarantee, but the fed is a close to that as anyone can get. I try to do my planning as though nothing is certain, so hopefully everything works out. If it turns out the country madly leaps on the freight elevator headed down to the lowest denominator, I have absolutely no qualms about retiring abroad. In fact, I will very likely spend a portion of the year overseas in any event.
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Old 02-23-2013, 11:18 AM
 
Location: Santaluz - San Diego, CA
4,484 posts, read 7,881,766 times
Reputation: 1960
Quote:
Originally Posted by stoutboy View Post
I have absolutely no qualms about retiring abroad. In fact, I will very likely spend a portion of the year overseas in any event.
That's something I can agree with you stoutboy. I think retiring abroad can make a lot of sense. That was part of my retirement strategy as well. I own property in a few countries and have permanent residency status in 2 other countries besides the USA.

In some countries you can live like a king. Get full-time maid, cook to come in daily for very affordable prices.

My wife and I also enjoy traveling abroad so international travel is a big part of our retirement plans.
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Old 02-23-2013, 12:28 PM
 
1,862 posts, read 2,879,667 times
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Quote:
Originally Posted by earlyretirement View Post
That's something I can agree with you stoutboy. I think retiring abroad can make a lot of sense...In some countries you can live like a king. Get full-time maid, cook to come in daily for very affordable prices.

My wife and I also enjoy traveling abroad so international travel is a big part of our retirement plans.
Yes indeed. For me, it all depends on how my savings wind up. If I do really well, I may choose southern Italy or perhaps France. Otherwise, somewhere in SE Asia. I've really enjoyed Malaysia each time I've visited, and they have an awesome retirement visa scheme. Australia or New Zealand is another possibility.
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