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Old 05-21-2015, 01:40 PM
 
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I see a lot of threads here talking about retirement. My husband is retired at (52-53 can't remember exactly) and hopefully my turn will come soon. It's part my fault since I don't feel I have enough. Even though I know everyone is different, even in different in different parts of the country. I"m curious, if you are retired or will soon be please post at what age, state, cash flow from different sources (pension, social security, investments), debt and mortgage if any. I want to see where I stand in my plans or if I am being overly concerned and won't let myself relax enough to retire.
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Old 05-21-2015, 01:48 PM
 
Location: Columbia SC
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This is right back to it does not matter how much you make, but how much you spend. One number does not fit all. You are going to have to plug the numbers in (income versus out go) for yourself.

Our income is SSI, a state retirement, RMD's on IRA's (they get reinvested) , dividends (they get reinvested) from several mutual funds. The good news/deal saver is no, zippo, nada debt.
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Old 05-21-2015, 01:51 PM
 
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I am retiring in 37 working days. I am 62 and my wife 64.

we live in queens nyc so our cost of living is quite high.

rather than base our budget on what our assets can generate as a max we set a budget for ourselves that lets us live below our means but yet meets most of what we want to do .

our yearly budget will be in the 120-130k range .

I may or may not take ss early in January , it depends on markets.

our early ss benefit will be 34-35k combined , pension 22k , small severance package of 3600 for 3 years and 50 bucks a month for life ..

all the rest will be from our portfolio .

we also have about 4k-5k a year left coming in from some rental income from our partnership at this point . but basically we sold most of it off.


medical insurance for the two of us and our long term care policy's eat up about 17k a year of the budget along with about 21k in rent and we live in a rent stabilized building , so that is almost 40k right there. .I will cobra and Marilyn will have medicare and an f medigap plan.


what your wants and needs are will determine what you need. I know our dream list is so long no amount of income could cover it all.

I always wanted my retirement to be the reward of a lifetime of planning , saving and investing and living better then we did during our working years raising a family.

everyone will want a different amount so comparing lives is a bit of a moot point.

Last edited by mathjak107; 05-21-2015 at 02:07 PM..
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Old 05-21-2015, 02:18 PM
 
Location: Whereever we have our RV parked
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Income is as big a factor as what you plan to spend. Knowing income is meaningless, because some can live on a lot less than others. First sit down and figure your expenses, med. housing, travel, food, etc.
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Old 05-21-2015, 02:22 PM
 
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exactly , which is why we first set our spending goals then compared it to what our maximum income capability would ball park at. if it fell comfortably under we were good to go.
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Old 05-21-2015, 03:24 PM
 
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You need to determine what you expect to spend. It is nice to also estimate how much is fixed and how much is variable and can be reduced if needed. As Mathjak points out be sure to include medical costs as they can be substantially more when retired. Next, of course, determine your sources of income. Social security is easy to estimate. Pensions are usually easy but also consider if the amount is fixed your pension will effectively become smaller and smaller with inflation. Trying to determine income from investments is even more uncertain. Since you are retiring at a young age, you need your portfolio to last for many decades. You will need to think about limiting your withdrawals to about 2-3% annually.
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Old 05-21-2015, 04:30 PM
 
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you brought up a very important point . how much spending is needs and how much is wants is very key.

why ? because how you invest for your income and what you can take in income will be determind by that fact.

my opinion is if you have a budget that is all needs you have no where to cut back if markets crap out .

you can't and shouldn't have much money in equities and that effects your income amount directly.

you can do more harm then good trying to invest in equities with very little non discretionary income.

Last edited by mathjak107; 05-21-2015 at 04:40 PM..
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Old 05-21-2015, 05:37 PM
 
Location: Colorado Springs
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Just take a look at your cash flow. The key is to get your expenses as low as you can and your income as high as possible.

As for me, I live in a low cost of living area, my mortgage is paid off, I have no debt, and I plan to start SS at age 67. My SS plus pensions at that age will be $53.5K (tax free) per year. I now spend below that so I won't have to touch my IRA until age 70.5

You need to look at how your SS will be taxed as a result of RMDs. I learned a lot by reading the posts here (thank you mathjak107) and I've decided to tap SS at 67 until waiting until 70.
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Old 05-21-2015, 06:07 PM
 
Location: Los Angeles area
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Quote:
Originally Posted by Vision67 View Post
Just take a look at your cash flow. The key is to get your expenses as low as you can and your income as high as possible.

As for me, I live in a low cost of living area, my mortgage is paid off, I have no debt, and I plan to start SS at age 67. My SS plus pensions at that age will be $53.5K (tax free) per year. I now spend below that so I won't have to touch my IRA until age 70.5

You need to look at how your SS will be taxed as a result of RMDs. I learned a lot by reading the posts here (thank you mathjak107) and I've decided to tap SS at 67 until waiting until 70.
I do understand that SS can be tax-free under certain circumstances, but I have never heard of pension income which is tax-free at the federal level. Please explain.
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Old 05-22-2015, 04:04 AM
 
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a budget that is structured as mostly needs will suffer for two reasons.

one is the limitations on equity investing since you will have no where to cut back from if markets crap out .

that can leave you stuck with short term bonds , TIPS and cd's to do most of the heavy lifting. that will reduce your income from what it could have been if you could have invested more in to equities.

the 2nd issue is that while we spend spend less as we age , unless you have things to cut back on your spending will not reduce much.

with no where to spend less as you age if there is no discretionary spending to cut back on inflation is a bigger issue.

typically with discretionary spending the cutting back as you age on lots of things pays for the inflation in the things you do continue to buy.

but if everything is a need then inflation will bite a lot harder.

so it is important to keep expenses low but much more important to keep the non descretionary expenses even lower .

unless you can do that you will be caught in a pretty miserable spiral downward.
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