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Old 08-08-2017, 08:53 AM
 
Location: Living on the Coast in Oxnard CA
15,726 posts, read 26,753,064 times
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Quote:
Originally Posted by elnrgby View Post
Yes, but reality works in such ways that an IRA generally earns about 4%-5% per year (maybe 8% in a fantastic year like this one, but it is not the average), when it doesn't lose 40% as in 2008-9. Neither kId will get that kind of return from an IRA, plus there are taxes to pay which diminish the final net gains further. In general, if you want that kind of returns, you have to be a professional investor with your attention glued to the market at all times, without any other occupation or interest in life (I do know some people of that kind, and they are not much different from heroin addicts). If investing were so easy and gains so predictable, everyone would have the assets of Warren Buffett.
The reason Warren Buffet has what he has is because he holds on for the long term. One of my close friends showed me one time that if you take any 40 year time frame and run it out you can see the growth over time. 95% of people do not have the discipline to stay in the market. I have had 20% returns and I have had 5% returns. Even in down turns my account seems to grow at least by 8% a year.

When you buy and hold you don't need to be glued to the market.
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Old 08-08-2017, 10:05 AM
 
Location: Long Island,NY
1,016 posts, read 544,503 times
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As others have mentioned, health insurance is the 800# gorilla unless it's included in your pension.
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Old 08-08-2017, 11:14 AM
 
125 posts, read 50,809 times
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Quote:
Originally Posted by ralphfr View Post
As others have mentioned, health insurance is the 800# gorilla unless it's included in your pension.
Yes. It's healthcare that will squander away your retirement right quick

Being Native American, this is something that will help me to some extent. Typical office visits at an IHS Health Clinic for a family doctor are free at our native clinic though N.P are usually provided instead. Typical blood tests also. Limited dental care is also free (cleanings, x rays, fillings, easy to do root canals & caps). Due to the ACA, the clinics can acceptmost health insurance.

Also the Indian Health Service never marks drugs up for a profit. Though the Clnic pharmacy is small, it still helps regarding savings and most drugs a person will need.

I'd like to work 30 hrs a week until I drop Just enough for the free health benefits, dental & accident policy. This would be one 50.5 weekend a month plus one 18 hr shift per week. Paid to sleep for 5+ hrs. Right now it is two 18 hr shifts per week plus I cover for other staff which would be slightly too much in retirement. Right now i average 45 hrs a week always getting at least 6 hrs of actual sleep per night.


Retirement in my mind is working 1 18 hr shift per week+ 1 long weekend a month. Perfect

Last edited by TruckeeWannabee; 08-08-2017 at 12:43 PM..
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Old 08-09-2017, 02:22 AM
 
Location: In my head
295 posts, read 315,250 times
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Quote:
Originally Posted by Cabound1 View Post
My 2 cents...

I retired at 42.

A couple years prior to retiring, it became obvious to me that for early retirees, there were 2 phases to retirement planning (pre "SS and Medicare " and post " SS and Medicare). I needed to plan for both phases individually. It also made sense, after a few calculations, that if I could control my present day expenses to match my present SS and Medicare numbers, retirement planning would be reduced to planning for only the interim period...between then and when I anticipated taking SS.

I immediately reduced my expenses to less than my anticipated SS payments. This meant paying off the mortgage and all other debts. I realize not everyone can do this, but I could, and did.

You following? If so...

This simplified the planning tremendously. Why? Because it changed an indeterminate amount of time to a definitive amount of time to plan for. I only had to plan from my current age until the day I took SS and Medicare.

For me, that was about 25 years. I set a number that I figured I needed as a nest egg to support my current expenses for 25 years.

I'm 13 years into retirement now and the "nest egg" is currently 125% of the original. And that was after a very unfortunate "sequence risk " of the 2008 financial mess. So I'm in better shape than I was when I retired. Doesn't mean I'm home free, but in way better shape than I anticipated.

My feeling is it's all about controlling expenses. I am naturally good at that. It's also about risk tolerance. Never been a scaredy cat......you need to assume some risk.... fixed income these days will never get you there....
Quote:
Originally Posted by PartIrish View Post
One important thing I left out is inflation over time, which will dependably reduce the buying power of your savings, unless your investments grow faster than the rate of inflation. I ran your numbers through Firecalc.com, and using the $750K number as well as your pension and (projected) social security, you come out at about a 75% success rate, assuming a 30-year retirement. Think your retirement will be shorter or longer? You can adjust for that in the calculator. I believe firecalc accounts for inflation in the annual withdrawals you will need to make from your investments.

If you bump up a to higher social security amount (you mentioned waiting until 70 to collect on your own ss), your success rate rises, perhaps to 85% or more.

Does your expenditure figure of $6,000 include taxes? Is it possible you could live on less? Might you have part-time income in retirement? Those variables will all have a significant impact on your "number."
How much did you figure in for medical pre-Medicare?
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Old 08-09-2017, 02:28 AM
 
71,470 posts, read 71,652,652 times
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our pre medicare ran 12k a year with 4k deductibles each and we are both very healthy . we get 2 office visits a year from our pcp ,lab and prescriptions covered .anything else has a 4k deductible
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Old 08-09-2017, 02:36 AM
 
Location: In my head
295 posts, read 315,250 times
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Quote:
Originally Posted by mathjak107 View Post
the only thing i will add and this is general advice , is never confuse your personal cost of living adjustments needed with the price change index (cpi) that is used to adjust inflation adjusted incomes .

the two can be far a part as far as your personal rate of inflation and what the cpi basket reflects .

that is why thinking TIPS or inflation adjusted annuities will keep someone financially okay is a myth .

personal rates of inflation take in more than the price changes of the things we buy and use which is what the cpi index does ..our personal rates also take in to account not only the price changes but how many times we personally buy the item . the quality of the item counts too. higher end items may last longer but see higher rates of infflation in price increases .

so never assume any inflation adjusted anything will match your needs . i think folks who are already on social security realize this . the cola's never reflect what each one of us experiences .

you need real growth assets to go with any inflation adjusted assets for best results and safety .

personally i don't recommend inflation adjusted annuity products . you give up to much cash flow for that mediocre inflation adjusting ..

studies show your own investing coupled with a non inflation adjusted single premium immediate annuity yield much better results .
Off topic, but why do you put a space before the period at the end of your sentences? Just curious.
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Old 08-09-2017, 02:41 AM
 
71,470 posts, read 71,652,652 times
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no idea . i type with only one finger left handed because i have nerve damage in my finger tips that make them overly sensitive so strange things can happen because i type both very fast and a lot with that one finger . cap keys are definitely out of my equation too.

anyone who has problems with that can just skip my posts .
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Old 08-09-2017, 02:45 AM
 
Location: In my head
295 posts, read 315,250 times
Reputation: 618
Quote:
Originally Posted by mathjak107 View Post
no idea . i type with only one finger left handed because i have nerve damage in my finger tips that make them overly sensitive so strange things can happen because i type both fast and a lot . cap keys are definitely out of my equation too.

anyone who has problems with that can just skip my posts .
Holy moly you are a fast typist. Coincidentally, late at night I only use my left index finger to type on CD forums while I hold my iPad. Thought about using Siri to type, but this works just fine.
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Old 08-09-2017, 05:26 AM
 
Location: Long Island,NY
1,016 posts, read 544,503 times
Reputation: 1786
Quote:
Originally Posted by mathjak107 View Post
no idea . i type with only one finger left handed because i have nerve damage in my finger tips that make them overly sensitive so strange things can happen because i type both very fast and a lot with that one finger . cap keys are definitely out of my equation too.

anyone who has problems with that can just skip my posts .

It obviously does not effect your photography skills!
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Old 08-09-2017, 05:30 AM
 
71,470 posts, read 71,652,652 times
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thanks . luckily it effects nothing else . i can do my drumming ,weight lifting and running with no problems .

just typing seems to be an issue because the tips are like the worst sunburn so just touching it hurts .

i had silent damage from diabetic neuropathy when it went undetected
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