The financials of retirement planning after a long-term, consistent income decline.

[BayAreaHillbilly]

Originally Posted by NewbieHere

I'm not sure why you started this thread.

Because, according to most mainstream writings / broadcasts on retirement, we will all have peak earnings at age 57, and will have higher income at 70 than at 40.

So, such sources tell you, convert to Roth, use mortgage for leverage and tax avoidance now, and many other pieces of advice that would be stupid for someone whose earnings peaked at age 45 ... or 40 ... or .... 35!

[kitty61]

Buy only what you need and leave out what you want. Live frugally.
What you save will go into a fund and that way you can still save dollars toward retirement if you so choose.

[Perryinva]

Originally Posted by BayAreaHillbilly

Because, according to most mainstream writings / broadcasts on retirement, we will all have peak earnings at age 57, and will have higher income at 70 than at 40.

So, such sources tell you, convert to Roth, use mortgage for leverage and tax avoidance now, and many other pieces of advice that would be stupid for someone whose earnings peaked at age 45 ... or 40 ... or .... 35!

Well, not quite. A Roth during your peak years may not make sense, but conversion in retirement when your tax base is lowest makes perfect sense, but you have to have the Roth to begin with. You are going to pay taxes on your deferred savings anyway. If you deferred at a bigher to a lower, you won. Now the conversion allows you to take advantage of that lower rate and make everything earned from that point on tax free and not part of your income AGI. If your income is already low enough to not pay taxes and you will have no RMDs, the it is likely not worth the Roth conversion. But right now, anytime I invest simultaneously in my Roth and tIRA, I know that every buck I make in the Roth is mine, while only 75% is mine in the other accounts, and my RMDs will keep growing. I only have limited use of that deferred money because of what it will do to my taxes in that year. I can do anything in any amount from the Roth. If either one of us passes, that accounts is still tax free for the survivor. The deferred accounts automatically go up a tax bracket.

[C24L]

Originally Posted by Escort Rider

What sort of a store is Cabela's? In other words, what do they sell there?

Cabela's is a sporting goods store.

[Stonepa]

This is exactly why I stress with my kids and family the need for being a lifelong learner. Time was you could go to high school or college, learn everything you needed for your chosen career, then settle into your job for 40 years with little need for more education. Sure, you might take some continuing education to get your CPE credits or to stay certified. However, today that is not nearly enough. The job you trained for or the certification you earned may not even be relevant in 5 years. You need to continually learn new skills. May not like it but that is the reality today and will only get more true in the future.

You also need to be mobile enough to move where the jobs are. If the economy dies in your area you have to move to where it is strong or your will suffer the consequences.

[Suzsilk]

There are copious examples of responsible, dutiful people who endeavored to manage their money wisely - and who nevertheless fared poorly in wealth-accumulation, either from layoffs or fractious divorce or health crises or whatnot. As many have pointed out, this "karma" thing definitely pervades, and can't be wished away; it's therefore foolish to judge harshly, let alone smugly.

.....Oh, and did I forget to mention that I was laid off at one point, went through a divorce and had breast cancer during these years. Not sure who this poster was referring to when he /she spoke of judgement and smugness, but none of us are spared when it comes to the perils of life. Still, if you prepare for the ups and downs, those road bumps won't ruin you. This is what we should be teaching our children.