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Old 08-04-2017, 11:19 AM
 
Location: Paranoid State
13,047 posts, read 10,466,890 times
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Quote:
Originally Posted by eliza61nyc View Post
I have retiree health care that I can start at 60 so I would only have a 2year gap to self insure
Could you get COBRA for part of that 2 year gap?

Quote:
Originally Posted by eliza61nyc View Post
my sons tuition is paid for. he's in his last year now and between what we saved and an inheritance its covered.
I'd suggest planning on covering your son's health insurance for several years after retirement -- unless his field is in high demand where he's pretty much assured getting a job working for a major employer that will provide full benefits.
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Old 08-04-2017, 11:29 AM
 
Location: Paranoid State
13,047 posts, read 10,466,890 times
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Quote:
Originally Posted by johngolf View Post
And if you die before age 78, you lost your shirt of that deal.
But you won't care, as you're dead.
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Old 08-04-2017, 11:29 AM
 
71,875 posts, read 71,942,576 times
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Quote:
Originally Posted by eliza61nyc View Post
oh thanks Mathjack.

let me ask another question if you don't mind. when I did it, I put in the 6K a month for spending. that amount includes 1700 for my mortgage that will go away in a few years when I downsize. should I lower my spending figure.
firecalc lets you adjust for temporary expenses
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Old 08-04-2017, 11:30 AM
 
71,875 posts, read 71,942,576 times
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Quote:
Originally Posted by ihatetodust View Post
Firecalc is strange. It becomes LESS optimistic if I put in my pension but not sure why . . .
you can copy and post all the data it is looking at if you want to post it here

Last edited by mathjak107; 08-04-2017 at 11:45 AM..
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Old 08-04-2017, 11:32 AM
 
Location: Paranoid State
13,047 posts, read 10,466,890 times
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Quote:
Originally Posted by rjm1cc View Post
Only reason to keep working when you are financially secure is because you enjoy work more than time off. If you do not enjoy work then retire.
There are other reasons. For example, a person might choose to continue working as you're a role model to younger children (that's the only reason I worked as long as I did). Or, a person might choose to continue working for the benefit of after-death beneficiaries -- for example to fund a professorial chair at a research university, or to fund a scholarship, or if you need to provide sufficient funds for a "special needs trust" for a disabled child or relative, etc.
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Old 08-04-2017, 11:39 AM
 
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my wife volunteers at the upk school where she retired from because being retired she can't work there for pay for another year under their pension rules . she loves working with the kids .
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Old 08-04-2017, 01:10 PM
 
1,082 posts, read 523,847 times
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Quote:
Originally Posted by reneeh63 View Post
FIVE million? Do I hear TEN, just in case? Seriously, I guess no one is really ever set to retire...how do people do it?
I agree....it's amazing how the investment community has managed to scare the hell out of people.

I continue to believe getting firm control of your expenses is step one. No one can completely eliminate unforeseen expenses, but personally I have managed to get to a place where healthcare expenses are really the only unknown, as I am not yet 65.

If you can manage to do that, the 4% rule Waaay overstates how much you will likely need.
I track my expenses and income very closely, so I went back and looked at the 13 years I've been retired. Turns out an 8% withdrawal rate would have allowed me to have the original principal exactly intact.

This doesn't surprise me, it's pretty much what I anticipated. 13 years of success does not mean continued success, but 13 years is a significant amount of time. Almost half of people retiring at 65 will be dead 13 years later, and they don't have to take on extreme healthcare risks because of Medicare.
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Old 08-04-2017, 01:11 PM
 
71,875 posts, read 71,942,576 times
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Quote:
Originally Posted by FREE866 View Post
ahh ok..just did it.....technically my time frame is 19 years because that is when SS will kick in ( at age 70).......looks like I'm in good shape....thank you...
when i was delaying ss i did it in 2 steps.since i took ss at 65 i ran firecalc for 3 years laying out the money for ss in advance . then i ran that balance for the 27 years remaining included ss
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Old 08-04-2017, 01:18 PM
 
Location: Living on the Coast in Oxnard CA
15,754 posts, read 26,814,388 times
Reputation: 20413
Quote:
Originally Posted by scgali View Post
I would want $5M plus a paid off home to feel comfortable. My grandma is 100 years old now and I've handled her finances for a while so see all the costs associated with getting older. And she owned apartment complexes and worked on/managed those until she was 85. She now has money in estate bonds generating between 3.5-5.5% and she gets social security about $1200 a month and a very small pension from 40 years ago. So she has a good monthly income but the care home is $4k per month and she's had more falls so more ER trips. More trips to specialists for hearing and vision (often not covered by Medicare). After seeing how much it costs her just in living and health care I'm quite stressed about having enough to retire.
We're going the route of buying rental properties to generate that monthly income and are on track to retire at 50 but I'm sure I will keep working.
I completely agree with you here. The $5 million goal is what we are working on now. My wife is hot to find rental properties if and when the market drops. We will have our home paid off early. For now we continue to grow our 403B accounts. I tell everyone to put as a minimum the amount you need to get the full employer match. We put in much more than that.
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Old 08-04-2017, 01:20 PM
 
1,082 posts, read 523,847 times
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Quote:
Originally Posted by eliza61nyc View Post
The reason I call it a scare tactic is that studies have shown (and yes I'll try to dig up a link) that when most, not all but on average, when folks are told these "you have to have 5 million dollars" endpoints they grow despondent and don't do ANYTHING.

I work for a fortune 500 huge international chemical company, when we ended our pension, our 401K participation rate was dismal. we couldn't figure out why. it's a pretty competitive package. dollar for dollar match on the first 6%, an extra 3% bonus every year anyone puts in more than 10% and a pretty decent variety of investment choices. what we found out was when we ended the marketing of "you will need x dollars to retire" to a more "reward based" marketing our participation increased.

you tell a guy he needs 10 million bucks, his most likely reaction will be "why bother, I'll never accumulate that amount".

look at it this way, on any given day you can find, usually on yahoo some doomsday scenario about how ill prepared we are in this country for retirement. You would think with all the articles on it every day, every american would be participating but we know that's not true.
Exactly. These investments firm don't understand human behavior. People give up when they are told they need these unrealistic amounts.
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