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Old 01-12-2015, 06:01 AM
 
193 posts, read 117,508 times
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You can google Garrett Planning network and search for a fee only, hourly charge, financial planner. They will give you unbiased advice.

NAPFA is another good place to search for advisors. Some of these advisors take a percentage of your total assets to manage them. Thus, the more money they make for you, the more they earn.

Neither of these advisors make commissions on any products , and they are by law required to make investments in your best interest.( Fiduciary)
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Old 01-12-2015, 07:32 AM
 
753 posts, read 706,211 times
Reputation: 1175
Quote:
Originally Posted by arabus View Post
You can google Garrett Planning network and search for a fee only, hourly charge, financial planner. They will give you unbiased advice.

NAPFA is another good place to search for advisors. Some of these advisors take a percentage of your total assets to manage them. Thus, the more money they make for you, the more they earn.

Neither of these advisors make commissions on any products , and they are by law required to make investments in your best interest.( Fiduciary)
Yes great tip! That is how I was able to find mine and UNBIASED was the key for me. I love the fiduciary responsibility aspect - and they take it seriously. All of this added up to peace of mind for me when I needed it.

Last edited by mamasplace; 01-12-2015 at 07:33 AM.. Reason: forgot to add..
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Old 01-12-2015, 07:44 AM
 
Location: in the miseries
3,302 posts, read 3,578,775 times
Reputation: 3810
Quote:
Originally Posted by eok View Post
One possibility would be to spend your money on an apartment building, wherever you want to live for the rest of your life. Live in that building and be the manager. Then you would always have work. The only way anyone could fire you would be by moving out. Then you could get someone else to move in. From my point of view, being retired simply means being so old nobody wants to hire you. Having your own apartment building, you would never get that old, but would always have work. And people would always respect you, because, if they didn't respect you, you might raise their rent. I just don't really see the point of being retired and not having work. People were made for work. If we don't have work, who are we? Just old people without work. Nobody respects us then. What's the point? And in any case the whole point is to not run out of money in retirement. How are you going to run out of money if you have a bunch of tenants paying you rent every month?
Having tenants can run both ways.
If you live there you are ALWAYs available for complaints.
If you get a bad tenant who doesn't pay rent, the games begin.
Courts always favor the tenant even when they rule against them.

If you're on the first floor. Beware of children above you. On and on.
Disclaimer. I owned many apt blogs. No more thank heavens.
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Old 01-12-2015, 09:24 AM
 
4,424 posts, read 5,453,434 times
Reputation: 6505
Hetty Green - Wikipedia, the free encyclopedia
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Old 01-12-2015, 09:34 AM
 
6,319 posts, read 5,717,541 times
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I would purchase a rental property.
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Old 01-12-2015, 10:28 AM
 
Location: Grove City, Ohio
10,133 posts, read 12,381,010 times
Reputation: 13956
Quote:
Originally Posted by old_cold View Post
Do keep in mind that if you're living happily on the $4300 but need that much, that if one of you dies there could be only half that much.
Will that be enough to not have to start depleting the "low 6 figure" amount and for how many years ?
How low that is may matter a lot since low can mean anything from under 500,000 to 100,000.
Very good point!

With what we will get as a couple we could easily retire right now and to tell the truth we could have easily retired before our FRA but what happens to the wife is what concerns me.

The best parting gift a husband can give her wife is financial security for the rest of her days. To provide for financial security is what a man who loves his wife does for her.

If I can work three more years our social security will be $4,300 and given the budget below:

For Couple
Retirement Budget Monthly
Medicare Subpart B $104.90
Medicare Supplement $185.00
Prescriptions $120.00
Homeowners Insurance $100.00
Property Taxes $80.00
Home Maintenance $200.00
Auto Insurance $75.00
Gasoline $150.00
Auto Maintenance $50.00
Utilities $250.00
Cell Phones $187.41
Internet Cable $123.27
Food $541.25
Clothing $200.00
Entertainment/Spending Money $649.50
Emergencies $300.00
Church $108.25
Totals $3,424.58

In addition to the $4,300 there's an additional $900 I am not counting because that goes away when I die so we will just save that, plus what is left over, unless we need it.

I think there is plenty of money in the budget for us... I can't see us needing the $4,300 and unless we make a trip we should be able to live well enough on $3,500 or less.

If I work to age 70 my social security will be a tad bit over $3,000 which is what my wife will pick up should I die first.

Wife Alone
(My wife's Medicare Part B and supplement is paid for by her state
retirement pension so we are lucky here.

Retirement Budget Monthly
Medicare Subpart B $0.00
Medicare Supplement $0.00
Prescriptions $120.00
Homeowners Insurance $100.00
Property Taxes $80.00
Home Maintenance $200.00
Auto Insurance $75.00
Gasoline $150.00
Auto Maintenance $50.00
Utilities $250.00
Cell Phones $100.00
Internet Cable $123.27
Food $433.00
Clothing $100.00
Entertainment/Spending Money $433.00
Emergencies $300.00
Church $108.25
Totals $2,622.52

We are fortunate that her Medicare Part B and supplement will always be paid for. That helps a lot and while she will get a state pension I figure that will be gone with the WEP.

With me gone the food budget etc should all drop by some.

Out of the social security check she should be able to save $400 every month and probably more if we don't have emergencies. The home maintenance is $125/month for the gardener and lawn service so her yard will always look spiffy and the roses pretty!

If I had retired at 66 her ss benefit would have been just over $2,200 leaving her short by $350 every month which is what I am avoiding by working a bit longer. Wouldn't you agree having an extra $400 left over every month is better than being short $350 every month?

As far as savings she won't touch that either until it is time for assisted living or other nursing possibility.

But you make a good point, if we had decided to take benefits early, say both at age 62 which is something 45% of Americans do, then we would have needed half a million in the bank.

The one thing I learned is when making up a budget if you do try to insert all the "what if possibilities" you can end up needing more money in retirement than when working full time.
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Old 01-12-2015, 01:14 PM
 
Location: Pennsylvania
12,480 posts, read 4,220,336 times
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Probably in the minority here but I think the last thing you people need at this stage of your life are investments in stocks. Not with the market on a 5+ year run and at all time highs. Get out while the getting is good.

Nor do you need the .0000000000000000000000001 % interest that a bank would pay you.

I say go for middle ground. BONDS. Including some high yield -- B rating or higher, but nothing lower.

Bonds are really not that complicated. Go to your local library or search EBAY and get a book on bonds. As long as interest rates don't move up too much, you will be ok for next couple of years. And you should be able to make 5%.
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Old 01-12-2015, 01:48 PM
 
Location: Near a river
16,042 posts, read 18,971,705 times
Reputation: 15649
NiceT4:

Interesting budget. What about eye exam/eyeglasses (most insurance pays only a portion) and dental exams most insurance does not pay dental). These are two big wild card.

Your property tax is quite low () so that is a saving grace. Your homeowners ins is a tad high ($1200/year??). That's a wild card.

Do you share an auto? If not, wouldn't your auto ins be higher?

Same with gas for the auto(s). We cannot expect these low gas prices to last long, so that's another wild card.

You could do better on your cell phones/Internet/cable maybe a better package deal?

Do you have a landline that you pay for?

Clothing only $100/year for each of you? Even just new underwear and a pair of shoes eats that up pretty fast.

Why the strange amount to the church? ($108.25)?

Do you have any pets (vets, food)?

Seems like your auto repair is budgeted too low; maybe take some out of entertainment/spending and add?

I assume spending includes cleaning supplies, toiletries, etc.

* * *

It seems to me that the wild cards in retirement are:

1) Healthcare out-of-pocket and rises in Medicare cost

2) Property tax and homeowner insurance

3) Utilities (heat, electric, etc)

4) Car insurance

5) Unexpected need to travel (as in emergencies, going to see family, etc)

6) And of course, the rising cost of food.

I would add 5% per year into the future for each of these items.

Some things may be dispensable in very elderly years (car, entertainment), but anything concerning housing and food is not dispensable and is only going to go up. I guess we all have to hope for the best.
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Old 01-12-2015, 01:52 PM
 
71,517 posts, read 71,694,121 times
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that is why we set a budget of 2x our non discretionary expenses. we might not spend that much but the slack in the plan gives us extra breathing room for the unexpected stuff as well as cutting back if markets and rates do not play nice.
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Old 01-12-2015, 02:09 PM
 
Location: Near a river
16,042 posts, read 18,971,705 times
Reputation: 15649
I saved this from a few years ago, FWIW:

The False Promises of Annuities and Annuity Calculators - Forbes
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