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Old 02-10-2016, 04:32 AM
 
71,626 posts, read 71,751,865 times
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Even medicare and a full comprehensive medigap plan can run thousands a year. You could opt for less coverage and pay as you go with an advantage plan but like most things in life nothing is a problem until it's a problem.

I am to young for medicare so i have an aca plan that runs thousands with huge deductibles and out of pockets.

My insurance and my wifes medicare and fplan plus our ltc insurance run 18k a year in after tax dollars
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Old 02-10-2016, 04:51 AM
 
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Like many I will probably have to wait until I am eligible for medicare before I retire. Still will have to budget in supplement.
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Old 02-10-2016, 07:33 AM
 
Location: Forests of Maine
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I have had tenants who were retired. They went into retirement as renters, simply on pension, with no problems.

I have also known retirees who own homes.

I went into retirement owning apartment complexes, each with a mortgage. Then we extracted the equity and bought a farm. We did not own a home without mortgage until after I retired.

If you own a home without a mortgage, is greatly reduces how much cash you need.



When I retired we got active with the lodge, American Legion, VFW and church. Each was okay for a while. But more demanding of us than we were comfortable doing.

A corporation tried to build a garbage-incinerator / landfill adjacent to our home, and we became active with local political activism. Fighting them, got us active with a few other groups, and now we serve on a couple boards.

I never dreamed that my retirement would include serving on quasi-government nonprofit boards.



I can see #1 and #2, though some people don't.

#3, #4 and #5, I see as much less important.
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Old 02-10-2016, 07:33 AM
 
Location: Albuquerque NM
1,661 posts, read 1,525,919 times
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3) At least $100,000 in the bank

You don't hear much about this one. There were always warnings to have 6 months or more of emergency funds but I never did because I had a very secure government job, a line of credit, etc. As you get closer to retirement, there are recommendations to have CD ladders available to live off cash when the market is down. So this criteria sort of creeps up on you. Now that I'm getting ready to sell my house and relocate in a couple of years, I've been struggling to save cash because I don't want to use my home equity to pay for closing costs. It has been a struggle because there are so many other tax deferred investments to fund first and saving after tax cash in a 1% CD or money market is not that appealing.
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Old 02-10-2016, 07:57 AM
 
Location: Idaho
1,454 posts, read 1,155,436 times
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There are only 2 items in my retirement criteria

1. Do I have enough money to cover expenses?
2. Do I have fulfilling and enjoyable things to do?

IMO, my item 1 covers your items 1-4 although not in the exact or specific terms. As others have pointed out, one does not need to own a home, be completely debt free, have a certain amount of cash or retirement saving to be financially prepared. As long as your expected retirement income + prudent withdrawal from your saving can cover all your expenses (housing, food, clothing, health insurance, medical expenses, desired non-discretionary spending) then you are ready to retire. For our particular case, we need to put aside enough cash to cover 2+ years while delaying collecting our SS benefits.

My item 2 is the same as your item 5. I have been in retirement for a bit over 3 months but still have not found any 'free' time let alone voids. There are just so many things to do: catching up with delayed home maintenance, downsizing/decluttering, organizing/digitizing/backing up family audio, video records and photograph, fixing/upgrading the house to get it ready for sale, checking out new retirement locations etc. It will be a while before I can do other things in my list like learning new foreign languages, traveling etc. We do try to find time to indulge in our hobbies (flying, rowing and hiking). IMO, if one already has hobbies and non-work related interests while working, one would have absolutely no problems finding things to do in retirement.
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Old 02-10-2016, 08:01 AM
 
71,626 posts, read 71,751,865 times
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Quote:
Originally Posted by ABQ2015 View Post
3) At least $100,000 in the bank

You don't hear much about this one. There were always warnings to have 6 months or more of emergency funds but I never did because I had a very secure government job, a line of credit, etc. As you get closer to retirement, there are recommendations to have CD ladders available to live off cash when the market is down. So this criteria sort of creeps up on you. Now that I'm getting ready to sell my house and relocate in a couple of years, I've been struggling to save cash because I don't want to use my home equity to pay for closing costs. It has been a struggle because there are so many other tax deferred investments to fund first and saving after tax cash in a 1% CD or money market is not that appealing.

Big cash buckets are only needed until you get through your first up cycle in retirement. After that you don't really need all that much cash unless you are comfortable with it.

After an up cycle spending from all parts of the portfolio whether up or down makes no difference between using cash when down.

It is all the same since you are drawing the same amont out of the portfolio at the same return.
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Old 02-10-2016, 08:41 AM
 
2,111 posts, read 2,092,718 times
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Quote:
Originally Posted by BellaDL View Post
There are only 2 items in my retirement criteria

1. Do I have enough money to cover expenses?
2. Do I have fulfilling and enjoyable things to do?

I agree with this poster. You don't want to have to go back to work in your 70s. There are a lot of retirement age people working at our local Publix checking out and packing groceries. It looks like a terribly hard job to be on your feet for hours at a time.
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Old 02-10-2016, 09:19 AM
 
Location: Loudon, TN
5,785 posts, read 4,838,667 times
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Have to say I agree with those who say that you don't have to own your home outright, although I would recommend paying off all your other consumer debt. If you have sufficient income + withdrawals, I guess even that isn't a necessity. It will make it simpler though. We never charge anything except things that can be paid off next month (plane tickets, etc). I am a little surprised by our neighbors who take on new car payments in their 70's and 80's, but if they have the income and don't want to draw down their savings for that new car or RV, well that's their business. For us, we'll buy used and pay cash.
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Old 02-10-2016, 09:42 AM
 
2,443 posts, read 2,072,308 times
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Quote:
Originally Posted by ABQ2015 View Post
3) At least $100,000 in the bank

You don't hear much about this one. There were always warnings to have 6 months or more of emergency funds but I never did because I had a very secure government job, a line of credit, etc. As you get closer to retirement, there are recommendations to have CD ladders available to live off cash when the market is down. So this criteria sort of creeps up on you. Now that I'm getting ready to sell my house and relocate in a couple of years, I've been struggling to save cash because I don't want to use my home equity to pay for closing costs. It has been a struggle because there are so many other tax deferred investments to fund first and saving after tax cash in a 1% CD or money market is not that appealing.
Maybe not all in cash but certainly something safe like ladder Cd's
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Old 02-10-2016, 09:47 AM
 
2,443 posts, read 2,072,308 times
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Quote:
Originally Posted by mathjak107 View Post
As others said debt free and ownng a home are not that important. Investing elsewhere instead to offset the costs are important.

The 100k part in the bank is going to depend on what your needs are for spending and how many years in withdrawals you want to hold.

We hold two years withdrawals and an emergency fund in cash and that is multiple 7 figures for us but only 10% of the total portfolio
Want to own not rent because I have a small RV that I park at the house. Not as easy renting as many places don't allow that.
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