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Old 05-31-2014, 05:18 PM
 
2,627 posts, read 4,955,690 times
Reputation: 2225

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Quote:
Originally Posted by mitchmiller9 View Post
I can commiserate. I feel your consternation!

I'm about to give notice at work that my last day is 6/20. I'm sure my boss will tell me I'm crazy and be downright angry since I've worked there less than two years. I'm turning 58 on 9/23 and have just hit $1.5M in savings (1M tax free and the rest in a regular IRA and 401K - fluctuates with the stock market since I'm an active investor). A lot of my relatives worked themselves to death and never got to enjoy retirement. I'm not in great health and have vowed not to do the same thing.

From the new SS web site, if I stop paying in at age 58, I can draw $2465/month from SS at age 66. Nice surprise since I was expecting only about $1500/month. I'm only $230 from the monthly max. SS and Medicare is my safety net in case things go terribly wrong over the next eight years.

How much $$$ do you have saved? I'm wondering because it's really difficult to understand a person's ability to fund retirement without real numbers.

I've read numerous times that the biggest mistake retirees make is spending too much $$$ in the first few years of retirement. I'm targeting a budget to not exceed $2500/month for the first three years, then I will reassess my financial situation. You need a budget. I've budgeted:

$700 for rent (studio apartment - Palm Springs)
$1000 for medical (insurance, dentist, misc.)
$250 for food, clothing, personal hygiene
$150 for utilities (moving to Palm Springs which can have high A/C bills)
$65 for internet, Netflix, Rhapsody music
$15 for phone (TMobile as needed minutes which I almost never use and BasicRalk ($10/month) for internet based phone service)
$100 for car (PAYD insurance, gas, upkeep - 2007 Yaris, paid for with 17K miles)
$40 for gym membership
$20 for $1M umbrella policy
$160 for entertainment

No vacations/travel planned for first three years. I don't buy Christmas gifts and rarely eat out. Most of my $160 will be spent on investment and portfolio management books (probably going to buy a Kindle reader maybe subscribe to Economist online).
Only splurges planned will be to buy a cheap electronic keyboard and maybe a used bike.
My 403b is worth ~ 700 thousand. I am not married, no children, plan on going on COBRA for 18 months, until I am eligible for Medicare. I seldom eat out, plan on using the local library.....and want to sell my home and move north to a lower col area.
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Old 05-31-2014, 06:11 PM
 
Location: Las Vegas (Winchester)
412 posts, read 308,023 times
Reputation: 418
Looks feasible to me. Just budget it out so you know where you stand.

I recently watched a YouTube video from a financial planner (he's a pretty interesting character - Iraq vet) - and he said one of his clients just had to spend $40K right out of the gate on some monster truck they didn't need. Seems that's a trend when people can finally get their hands on their retirement funds. He couldn't take the guy out of it, but said he at least helped the guy do it so it minimized the financial damage, given this couple didn't have that much socked away.

A lot of financial talking heads always say work till you drop... you'll live to be 100... you'll run out of money and then what?

I would rather run out of money than run out of time!
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Old 06-01-2014, 12:14 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,628 posts, read 39,998,659 times
Reputation: 23790
Quote:
Originally Posted by Umbria View Post
You'd be crazy not to, IMO.enjoy the new chapter of your life.
This is where I stand, Get outta there, and get on with it!
Since I'm a farm kid and previous caregiver for a disabled parent, I had the equivalent of 99Yrs of 40hr / wk service when I retired at age 49. And no healthcare. If it were just me... I would be 'self-insured', and not paying $1700/month. I take fun jobs that I love to do to subsidize income / HC when necessary.

As you know my motto.. "Retire Early, Retire Often!". It is too much fun to just do once / lifetime.

Quote:
Originally Posted by mitchmiller9 View Post
Looks feasible to me.

...I would rather run out of money than run out of time!
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Old 06-01-2014, 06:50 AM
 
Location: NE Mississippi
13,689 posts, read 8,594,306 times
Reputation: 19922
Quote:
Originally Posted by StealthRabbit View Post
Figure out how to bridge the income gap till age 66, W/o taking early SS.

There are many options. consider them all (sell the kids, sell the car, beg on the street corner, get SSD.... This may be ez'r than working.

If you cannot figure it out... continuing working until the incentive to leave uncovers an available option to fund a minimalist existence for a couple yrs.
Good idea.
Popcorn, the OP, should consider taking an interim job to help him get through the last 3 years until Social Security takes hold. That's what I did. I always wanted to drive an 18 wheeler, so I leaped at the chance to do so. I only had to do it for 5 years, and I'm sure glad I did it.

Retirement is good.
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Old 06-01-2014, 06:52 AM
 
71,708 posts, read 71,829,507 times
Reputation: 49273
some folks are just better off taking ss earlier then waiting. they may risk running out of money before their ss kicks in if they are drawing to high an income.

waiting is good if you have comfortable resources to wait without running dangerously low on savings. the op has enough to wait things out especially with the low cost lifestyle they mentioned.

they already won the game, i see little reason to keep playing.
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Old 06-01-2014, 06:56 AM
 
421 posts, read 772,748 times
Reputation: 341
We decided at 62 that we had both had it. Sold our house in Southern California and bought a house in Las Vegas twice as big and with a pool for half of what we made on the CA house. That put more padding into our savings. It's a wonderful place to live, always something to do (no, not gambling all the time) They consider 50 as a "senior" here with loads of discounts on restaurants, movies, etc. Life has never been so good!

So look around at your alternatives, make a plan, and the best of luck to you!
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Old 06-01-2014, 07:27 AM
 
2,627 posts, read 4,955,690 times
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There is something that I am confused about. If I were to take SS early, let's say it pays me $18,000.00 per year. So in the 3 years before I reach full retirement age, I would have received $54,000.00 from SS. How can waiting until full SS be better than having received the $54,000.00? Or, will my income from the income stream from 403b be counted against the SS prior to age 66?
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Old 06-01-2014, 07:29 AM
 
71,708 posts, read 71,829,507 times
Reputation: 49273
waiting may not be better in your case unless you live a long time. in fact the combination of rmd's and a big ss payment at 70 can really hurt you tax wise.

it is different for married couples where there are more options and concerns like survivor benefits as well as the ability to take spousal benefits.

Last edited by mathjak107; 06-01-2014 at 07:47 AM..
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Old 06-01-2014, 07:43 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,628 posts, read 39,998,659 times
Reputation: 23790
Quote:
Originally Posted by Listener2307 View Post
Good idea.
... I always wanted to drive an 18 wheeler, so I leaped at the chance to do so. ... and I'm sure glad I did it.

Retirement is good.
How ironic... I did that gig upfront (ran WY, SD, CO, NE, KS) while attending college. I'm sure glad I did!!!
It was my favorite job of all time!!! Especially liked rolling into the terminal and parking!, file your log-book, leave a note for the mechanic and you DONE.. no stress to drag home! Never got any better than that (Until retirement!)

I still keep my CDL current and can pick up $25/hr weekend runs any time I want some adventure and $$.
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Old 06-01-2014, 07:54 AM
GLS
 
1,985 posts, read 4,848,887 times
Reputation: 2408
In projecting expenses for retirement, one thing I see that people may underestimate is "maintenance" of what you already have accumulated. Although I tried to project inflation of products such as food and new purchases, I am shocked at the rise in "service costs" for things you need but may not be able to repair yourself.

Let me share my experience in the past week, but first two caveats. This post does NOT apply to those exceptionally handy individuals who can build or repair things themselves. Personally, I learned a long time ago, I am dangerous with power tools and lose my temper trying top fix things and break them worse. The second caveat is that I know people can "downsize" and get rid of many material things. Unfortunately, I am not that mature. I worked hard for many years to purchase nice things and would like to continue to enjoy them in retirement.

With the above said, this week my sprinkler system went on the fritz. The company that came out to fix it charged $412 with new parts, service call, etc. On Tuesday, my refrigerator took a crap and the labor call and service was $820. The guy said I was lucky because the parts were covered by warranty or it would have been $700 more.
Two days later, the water line to the house broke and we had no water, no showers, toilets can't flush, etc. I saved a little money by digging the hole to "daylight" the break.
In my younger days it would have taken 5 minutes to dig the hole. Now it took an hour and I had to pull up a lawn chair and rest every 5 min. Since I have no plumbing skills, no proper tools, and would have to lay on my stomach in the mud to even reach the break, I called a licensed plumber. It was after hours, but we needed water. That cost $475.

My point is not to whine. It is just to illustrate how it is easy to spend your entire month's social security check on "maintenance". I didn't anticipate this "inflation" factor in retirement planning, and I am nervous about what these costs might be in 5 years? 10 years? If you do not have handyman skills or if your health deteriorates (I need back surgery), you may want to budget more for situations where you are forced to rely on skilled labor to do your work.
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