What advice would you offer 38-year-old me? (relatives, psycho, friend)
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We retired about 5 years ago. A little earlier than we ever thought we would because of DH's health. We moved to a small town that is basically a retirement community. Some of my observations from others that we have meet here:
Boredom...They don't have any hobbies that get them out among others.
Loneliness...Single older people are really, really lonely. Join a church, volunteer, maintain your friendships.
Lack of funds....Some have retired and then found out that they can not live on their retirement income and have been force back into the job market in their 70's
One elderly couple at risk of losing their home. They now realize they lived beyond their means, didn't save enough when they could.
Health...get healthy now and do everything you can to stay healthy.
From my perspective of being 69 and still working.
The only thing I would have done differently was pay off my mortgage before 60. In all my planning once you have the mortgage paid off, and don't live in an area with real estate high taxes, you can really trim down on your budget.
Not paying 50% more on the mortgage was one of the biggest mistakes I made. Stupid of me because I could have easily have done this 10 years ago but I didn't. The good part is I like my job and even without a mortgage I probably would still be working just because I want to.
Get rid of all debt, stay out of debt and get that mortgage paid off.
I dream of retiring one day and I read the threads here often.
The real purpose of my thread is I'd like some/any advice from those who are already retired. It can be any type of advice (personal, financial, health-wise, etc etc) but mainly I was hoping moreso for things you would have done differently in life leading up to retirement....it could be anything.
I am retired and not nearly as comfortable as I would like to be. Some times unexpected things just happen in life, so you can plan and plan...but you just don't know what the future holds. If there is one piece of advice that I wish I heard long ago, it would be: "PAY YOURSELF FIRST." That means as soon as you get your pay check, put away a pre-determined amount of it in the bank...or maybe your employer has a pension plan. Pay your bills next to keep your credit good, and then decide how to spend what is left. I would recommend two savings accounts...one being a retirement fund and one being a regular savings account for those unexpected things that come up. Also, set up a monthly budget and stick to it. I would highly recommend seeing a financial planner. Now is the time to do that while you are still young and have at least 20 years+ to work. Best of luck to you!
BTW...just one more thing. Before you purchase something, ask yourself if you really need it or just want it. Retirement arrives in the blink of an eye.
Last edited by dipm; 12-31-2017 at 06:35 PM..
Reason: Add info.
I might be able to max the Roth next year if I put all of my December annual bonus into it. Just a thought....
You will probably also be getting a tax savings of a couple thousand due to the new tax law and should consider investing that toward maxing out your 401k or IRA's.
My job doesn't pay bad...I'm just closing in on 6 figures. But considering my age and current savings I do have that pressure sometimes to "go as hard as I can" and consider as many increases in income as I can while I can. It's just really hard to gauge if it's worth it to stay for that reason or not.
OK.......lol......closing in on 6 figures is a little more than "doesn't pay bad".
Normally, I agree and tell people make as much money as you can, however you can.
But, do not underestimate the value of a pension which most people no longer have.
Before you walk away from the pension, you need to seriously assess how secure the pension is, and how much extra money you would have to earn AND invest in order to make up for the pension. I am guessing it would take a huge salary increase to make up for the loss of the pension.
Perhaps the smarter thing is to pursue how you can increase your salary with your current employer.
I dream of retiring one day and I read the threads here often.
My idea of retirement is changing as up until my mid thirties I thought retirement would mean exiting the workforce early and not working (at all). However, lately I've been thinking that some form of work is actually very healthy for me and I probably need to be doing 'some'thing come retirement time. Ideally it would make some money but I know after a certain age I might not have the ability to do things that generate an income.
I digress...
The real purpose of my thread is I'd like some/any advice from those who are already retired. It can be any type of advice (personal, financial, health-wise, etc etc) but mainly I was hoping moreso for things you would have done differently in life leading up to retirement....it could be anything.
I don't have a goal yet of a specific retirement age because I don't have much in retirement funds and hardly any assets, so honestly right now I'm thinking I have to work until full retirement age. Basically I would like to be financially independent enough to pay all of my bills from investments, SS (I include getting 50% of projected benefits as an estimate in my future budget) and maybe a few gigs here or there by age 57ish.
I will admit here that sometimes I think I read a lot of retirement forums and threads because deep down maybe what I really need to focus on is creating a life I don't want to retire from (those that can relate will know exactly what I'm talking about). I want to make sure I'm balancing having a good life and fun now with making sure I have a plan for when I get older...I mean I'm almost 40 and really need to start thinking about what life will look like for myself when I'm 60+.
By the way I'm currently single, no kids (no plans to have any), live in the southeast and work full time from home. Any questions, ask away. So with that said, tell me: what are some things you would have told 38-year old you that could be advice applicable to me for the future? What are some things you did right that have led to a good life in retirement? Did you have worries going into retirement that aren't worries now that you're actually retired? Any insight/advice at all you feel like sharing, please do...
get out of debt.....invest in index funds some dividend reinvesting blue chips and some oil and gas to combat against inflation.
Find a loving spouse. Two-earner families do better. If you have kids stop at two or one. Save money. Live below your means. Don't be unwilling to move if it suits your career goals. Used cars are fine. A trophy house is a wasted expense. Find a financial advisor you can trust who is knowledgeable. Travel wisely. Protect your health. Avoid too much risk. Choose friends wisely.
It was out of my hands but oh how I wished I was a Government employee. The best gig in the world if one is not looking for riches but an easy, monotonous secure job that gives a person much more time in the prime of their lives. I'm so envious when I talk with people who are retiring in their 50's since they already put in the time.
Like some have said apply if you can and get that pension. It's a godsend.
It's even better when you collect two pensions and your spouse brings in another one. I did my time in the trenches. Now it's easy street.
The real purpose of my thread is I'd like some/any advice from those who are already retired. It can be any type of advice (personal, financial, health-wise, etc etc) but mainly I was hoping moreso for things you would have done differently in life leading up to retirement....it could be anything.
I came back to work from a trial retirement because I wanted some extra money and because I needed to use my mind. I exhausted all the cheaper interests and came to a point where I realized I needed more money in order to pursue additional interests.
Try to understand what kind of person you are. Will you sit in front of the TV for the rest of your life?
are you a life long learner?
My boss is 62 and he has a fear about what he's going to do with himself after he retires since he never really developed any extra curricular activities that didn't revolve around work.
I came back to work from a trial retirement because I wanted some extra money and because I needed to use my mind. I exhausted all the cheaper interests and came to a point where I realized I needed more money in order to pursue additional interests.
Try to understand what kind of person you are. Will you sit in front of the TV for the rest of your life?
are you a life long learner?
My boss is 62 and he has a fear about what he's going to do with himself after he retires since he never really developed any extra curricular activities that didn't revolve around work.
Thank you for the advice.
I have to think about this. I am definitely a leisurely person but I love being creative so my hobbies will probably revolve around creative pursuits. Of course, I love travel as well so I do hope that is something I will still be able to do.
If I retired tomorrow do I know what I would fill up most of my day doing? Not at all. So it's definitely something to think about. I am starting to believe that I need 'some' type of job to force me getting up by a reasonable time and to have more structure and interaction. Now that I am working from home this is something I have learned about myself very quickly. I hope I will be able to have some type of part time job (for a long time I thought I wouldn't work at all) along with filling up the rest of the time with hobbies/other interests.
Thanks for posting
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