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Old 12-13-2016, 06:14 AM
 
Location: Hiding from Antifa?
6,427 posts, read 4,187,549 times
Reputation: 5726

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Quote:
Originally Posted by Listener2307 View Post
Out of curiosity - and I'm not expecting you to reveal actual numbers - what does it do to Social Security when you don't have income for the last 20 years?

The reason I ask:
We were self employed. In order to save money, she would take all the money one year and I would take it all the next. That way, only one of us would pay Social Security. Person A maxes out the income, and person B pays nothing. Switch, the next year.
We looked at it with our accountant, and while he admitted it was a little unusual, it was not illegal and it saved money, and it made no difference in our Social Security amounts.
As long as the one taking the money did not surpass the cap on SS wages in a given year that could work. But if you did, then the other should start taking the money. Everything you earn over the cap does not give you credit. The years you don't take the income will be used to calculate your benefit if you don't have 35 years where you did earn an income. It will effect your benefit, if you are not careful.
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Old 12-13-2016, 06:17 AM
 
Location: Hiding from Antifa?
6,427 posts, read 4,187,549 times
Reputation: 5726
Quote:
Originally Posted by FREE866 View Post
Good question...when I go to my SS page it indicates like 43K per year at age 70, but that assumes I work I think until like age 63..

I visited the SS office and explained what I was doing....they said that based on not working another day that number goes to like 33K at 70.....
That is under current rules, which may change for people currently under 55.
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Old 12-13-2016, 07:48 AM
 
Location: NE Mississippi
13,689 posts, read 8,601,319 times
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Quote:
Originally Posted by FREE866 View Post
She's 37.....shes happy as long as I'm happy...
I travel...not a ton, but take 1-2 vacations per year and that is accounted for in my expenses....
Yeah. Vacations don't have to be expensive, especially if you have lots of time.
We took a train trip to Washington DC and had a really great time. Train was cheap; public transportation was cheap and staying out of downtown was cheap as well.

Bermuda; Barbados; American cities... You can do all that stuff if you use your head.
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Old 12-13-2016, 08:04 AM
 
Location: NE Mississippi
13,689 posts, read 8,601,319 times
Reputation: 19949
Quote:
Originally Posted by Perryinva View Post
.......... In the late 90s, when you retired, you came off 20 years of the highest returns on the stock market. Again, just saying. This ain't 1996 by any stretch..............
Maybe that's a better way of saying what I'm trying to say.

Some time periods make retirement look assured. Others make it look impossible. Look back at the chart for the Japanese stock market (#52). There are time periods when retirement was easy and other times when it is almost impossible.
And who can say where we are on the chart for the S&P? The person who retired in 2007 thought he was on top of the world. 18 months later he may have had half the money he did originally!

All of us can look at the chart now and say what we would have done, but would we really have stuck it out if we were not working and could not replace our capital?
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Old 12-13-2016, 10:39 AM
 
Location: Chicago area
14,423 posts, read 7,939,946 times
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Quote:
Originally Posted by FREE866 View Post

I apologize if this came off as a "brag" as someone remarked. I didn't mean it that way at all. Honestly, I'm just incredibly excited and wanted to bounce this off the board to see if I missed anything.

Aww don't take remarks like that too seriously. It may have been made by someone resentful and unable to retire? Who knows what goes through people's minds when the horns come out? I personally don't see it as a humble brag. I see it as perfectly normal to second guess whether you have enough or not. You could also have been living on a shoe string and plan to do so after retirement. We all have different definitions on how much we need.

I retired early with those same anxiety driven questions because you just don't know what the future brings. What if multi millions isn't enough? These are perfectly normal feelings. No one really knows how much they'll need, especially if something catastrophic comes along. Once you leave the job your options shrink. There is comfort in knowing that you could earn a paycheck if something goes wrong. Take away that safety net and the fear sets in. Rational or not.

All I can tell you is crunch the numbers several times like I did before I retired early. Have some back up money for your back up money and just go for it. I planned right and we are perfectly fine and still living the life style we lived before I retired, only it's a lot more fun. We are in the spending faze of our life now instead of building that nest egg.

No brag, just fact. Sorry if having enough money to retire early and comfortably offends anyone. Yeah, not really. I know how hard we worked for it.

Good luck to you and come on in. The water's fine
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Old 12-13-2016, 11:36 AM
 
Location: RVA
2,172 posts, read 1,270,926 times
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A rep for that. No bragging. Just asking questions or giving real life examples. The ones with fewer funds are the ones to make noise because to them it seems obvious that the amounts discussed are more than enough. That is total BS. Its based on their reality of whats required. No one but me can tell me what is enough for me, or the OP for Free866 or animalcrazy to animalcrazy. Excuse me if I choose my standard of living and you are offended because it is more than you can afford. That's how it works. I'm glad you are perfectly happy doing only free things and local travel. I prefer to do things that cost money, travel worldwide in comfort, as well as those free things, and don't mind working a job I like a few extra years to get that.

Like the OP, I would also like to take a year off. Then decide. Many people do, its called a sabbatical. Some companies allow it, some encourage it, some call it resigning and hoping to get your job back.

Mine allows a two month one with little effort. Of course, no benefits or pay. I will likely do what is called Phased Retirement at my company, commonly called Part time. Work 9 months, get 3/4s vacation, and 3/4s pay, but full benefits, all holidays, company match on savings, and most importantly, another years service to count towards pension. But you are scheduled to "work" 3 weeks of every month, but holidays and vacation count. At age 62 I would then get 3/4s of 200hrs plus a personal holiday. And I typically carry a week from the previous year. I've been paid monthly my whole career here. But you can get your "sabbatical" by proper scheduling to work say, 4 weeks in March, and count the 4th week as the first week of April, then take 2 weeks vacation in April, then 2 weeks vacation in May and work all of June, with first week of June counting as the last week of May. That would be over 8 weeks off for 4 weeks vacation time. Schedule that over the 2 day Thanksgiving holiday and gain a few day. And I would be still getting a week off per month during the other 8 months. I estimate what I would draw from savings for the missing 3 months would still be much less than what I would be adding by working the other 9.

Last edited by Perryinva; 12-13-2016 at 12:23 PM..
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Old 12-13-2016, 11:39 AM
 
249 posts, read 197,444 times
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Quote:
Originally Posted by Perryinva View Post
They said above, no pension. But they didn't reveal where they live (COL) if they owned a home, propertty taxes, etc, etc. Its not doom and gloom, but lets compare apples to apples. Does anyone think that 70 today is the same as 70 will be in 20 years, cost wise?? You are married filing jointly. The OP is single. Your medical cost for insurance for the 15 years before Medicare pales immensely to what the OPs will be for the next 15. Etc, etc, etc. In the late 90s, when you retired, you came off 20 years of the highest returns on the stock market. Again, just saying. This ain't 1996 by any stretch.
I live in Southern California, I invest in both real estate and equities. My home is not paid for, as I do better investing the money. I know real estate in California gives higher profits in return for the larger investment.

I don't want to make this thread about me, only that many people can and do retire at fifty and live comfortable lives. My sister is two years older than me, she (and her DH) also retired young and own two homes going between both of them, they haven't run out of money. I do pay a large premium for my medicare supplement, if I couldn't afford it I could obtain an HMO for no monthly premium, same thing before medicare, we choose to pay higher premiums for our choice of doctors.

My point - there are still opportunities out there, if one looks for them and seize the opportunity.
I understand not everyone is comfortable taking the risks we've taken or doing the work we've done. Still no reason for doom and gloom, life is not over, its time for a new adventure.
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Old 12-13-2016, 12:34 PM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Exactly right. My own parents retired on much less in their early 50s. In my mothers case, it turned out to be a smart move as she was immobile by 68 and dead by 69. At 77, my Dad is in no immediate danger of running out of money, but I would not live his life style. A really major upset or a LTC facility would chew theough his savings in no time, and then he'd be living entirely on a fairly meager SS. But as he only has himself to worry about, and lives with a girlfriend, his expenses are shared and low, and he banks alot each month. So it's all fine, until it isn't. Not doom and gloom by any stretch. But as I mentioned, if you invested well in the 80s and 90's and retired in 1996, your view of "it's perfectly doable" is not the same as someone talking about retiring today.
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Old 12-13-2016, 01:34 PM
 
249 posts, read 197,444 times
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Quote:
Originally Posted by Perryinva View Post
But as I mentioned, if you invested well in the 80s and 90's and retired in 1996, your view of "it's perfectly doable" is not the same as someone talking about retiring today.
What is not doable. Today I, along with others live in retirement, what does it matter that I've already lived in retirement for twenty years?
I could argue a person retiring today has had twenty more years to work, invest and save?
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Old 12-13-2016, 02:45 PM
 
Location: RVA
2,172 posts, read 1,270,926 times
Reputation: 4492
Ummm...then he's not retired, is he. Unless you mean retire at 50 today. In which case that doesn't make sense. You have maybe 25 years left with today's financial situations. He has 45 years. I guess you are saying that there is no difference between being retired starting at 50 for 20 years feom 1996 to 2016 vs 2016 to 2036, and I think it will be significantly harder.

I recommended continue working at something he enjoys, and can live mostly on, but maybe not enough to sustain AND invest. Let the investments grow. That's the same as your last statement. He just wants out of corporate america, and I don't blame him. I could never do that for 30 years. I'm in technical problem solving, mostly isolated from petty politics.
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