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Old 12-07-2018, 02:37 AM
 
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plus she has to file taxes as a single
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Old 12-07-2018, 02:58 AM
 
Location: Copenhagen, Denmark
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Inflation and recessions eat away at retirees' wealth, usually without sufficient income to offset the losses...especially as we live longer.
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Old 12-07-2018, 03:04 AM
 
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it does not even have to be recessions . just poor sequencing and a modest downturn can hurt bad . a modest U-SHAPED downturn that is extended in duration is far worse then 2008 was where we had a quick V-shaped recovery quickly ..
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Old 12-07-2018, 03:53 AM
 
Location: R.I.
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Quote:
Originally Posted by mathjak107 View Post
plus she has to file taxes as a single
My older sister who just turned 70 retired from the teaching profession at age 53 to take care of her terminally ill husband and in doing so this significantly impacted her pension. Her husband made a very good income working in Catepillar sales and was a pretty smart investor, so when he died 3 years following my sister's retirement the income flow from the investments at that time allowed my sister the income to not have to return to work. It is now 14 years later and what was a good monthly income back then not so much now. And had my sister not been able to collect a portion her husband's tax free 100% service connected Veteran disability benefit which he was awarded a month before he died and additionally being able to first collect a widow's benefit and now moving to her own higher age 70 benefit which is $400/month greater than her survivor's benefit which she claimed at 60, she would now very possibly be looking for a part time job if she wanted to continue to live the lifestyle she has been living and believe me it is a good lifestyle but definitely not one of the rich and famous. And I might add my sister never had the expense of a mortgage on her condo that she purchased in cash a few years after her husband died, and she also drives a low mileage car by choice that is >10 years old because she does not want a car payment.

So having my own financial experiences of being a widow now 17 years along with my sister's, when I see posts like this followed by responses such as retire now because tomorrow is not guaranteed I agree the latter is true, but if retiring now could possibly leave your surviving spouse with a legacy of debt or financial hardship in the future these issues need to be strongly considered before throwing in the work towel especially if working a year to two longer than planned can eliminate future financial hardship for a surviving spouse.
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Old 12-07-2018, 03:59 AM
 
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i will take it a step further and say that a couple really needs to review their plan .

generally one in a couple will be the investor and the other just along for the ride .

it is imperative that the plan be simple enough for the other person to just take the reigns .

i mean i can't believe some of these complex portfolio's or trading methods some use and they are married .

my wife was married before and her husband died . she had a mess of investments dropped in her lap and understood nothing .

so she went to the guy she trusted at her bank and he put her in tech and dot coms . she lost 1/2 her savings .

so the investing plan needs to be simple enough .


80% of married men die married , 80% of married women die alone .


so that in itself takes very different planning . women live longer , tax wise the married ones will be filing single and their objectives may be very different .

financial planners will generally all have the same story . it is primarily the men who are more interested in growth and beating benchmarks , while most women clients are concerned about their financial security . many all have that vision of the homeless bag lady under the bridge lol

Last edited by mathjak107; 12-07-2018 at 04:17 AM..
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Old 12-07-2018, 04:11 AM
 
Location: Ypsilanti, MI
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Quote:
Originally Posted by mathjak107 View Post

i will take it a step further and say that a couple really needs to review their plan .

generally one in a couple will be the investor and the other just along for the ride .

it is imperative that the plan be simple enough the other person can just take the reigns .

i mean i can't believe some of these complex portfolio's or trading methods some use and they are married .
Touche!

All our investment decisions are made together, are intentionally simple to accommodate possible reductions in comprehension as we age, are reviewed Quarterly with our trusted Financial Planner we have used for ~15 years, and adjusted when needed. Our Planner is only in his early 50's but has already started his succession plan for clients for when he retires in ~10 years. A couple needs to consider not only the now, and short term future then, but also the long term future as well.
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Old 12-07-2018, 04:16 AM
 
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my wife is part of every move . i made sure she learned and understood the how's and why's of everything we do .

at some point she would like a spia base and have a check coming in , along with our own investing , but that is something i will look in to at 70
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Old 12-07-2018, 04:25 AM
 
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To the OP: not sure where you live but your income is good for most states (so-so in high CoL states). I'm most concerned with the fact that at 68 years old, your combined 401K is *only* in the $600K range. For one with such a decent income, I'm surprised that between two people it's not higher. Also, at this stage (pushing 70) you still have a mortgage. I'm not saying that you cannot retire, surely you could, but if you are okay with your job and it's not killing you, I'd stay at it for another year at least and work on really getting rid of your outstanding debt and trying to beef up some more savings. That's not fun at all, I know, but your numbers wouldn't be comfortable enough for me.

I guess it all depends where you are going to end up living.
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Old 12-07-2018, 05:49 AM
 
Location: Philadelphia/South Jersey area
2,870 posts, read 1,400,541 times
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Quote:
Originally Posted by rayj00 View Post
So, I am 68.



I currently still work and due to 2019 salary adjustment, I will be earning $125K/yr starting 2019.
I am considering working one more year before I fully retire. The $ is hard to turn down. And BTW, I work
from home.



I started to collect SS at my FRA of 67 and combined, me and the wife will be getting
$49K/yr after the increase that starts in Jan 2019.



We currently have $625K in a 401K and $50K cash on hand. (Should I convert the 401K to a ROTH and take the tax hit now?)



We owe $80K on our condo that we currently live in.


We own another home that we bought in 2005...yep...right at the peak of the real estate boom.
Needless to say, we are underwater on that property as we took an 80/20 loan (We've come a long way since 2005!). We rent it out but are still negative cash flow on the monthly income by over $300/mo. Monthly 1st mort is $1050/mo. 2nd is $350/mo. Hey...its a nice tax deduction... (I am considering just walking from this home as it is in a non-recourse state. How bad a hit would I take on my 830 credit score?)


Anyway I am wondering....should I stick it out until I am forced to withdraw from my 401K (RMD at 70 1/2)? Or should I continue working till I die? What would you do in my shoes?

lol, hopefully there is some middle ground. first, what is your lifestyle? do you have a lot of things your wife and you would like to do?

Don't know how bad a hit your credit score would take but truthfully is that really important? are you planning on needing credit any time soon. I would bail on the second home.

Big question is can you guys live on your 49K a year? does your mortgage include your property taxes and insurance?
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Old 12-07-2018, 05:59 AM
 
Location: Philadelphia/South Jersey area
2,870 posts, read 1,400,541 times
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Quote:
Originally Posted by mathjak107 View Post
i
my wife was married before and her husband died . she had a mess of investments dropped in her lap and understood nothing .

so she went to the guy she trusted at her bank and he put her in tech and dot coms . she lost 1/2 her savings .



so that in itself takes very different planning . women live longer , tax wise the married ones will be filing single and their objectives may be very different .

financial planners will generally all have the same story . it is primarily the men who are more interested in growth and beating benchmarks , while most women clients are concerned about their financial security . many all have that vision of the homeless bag lady under the bridge lol

So this was me but with very different results though. so like your wife my late dh did all the investments, what can I say he was good at it and like it. so when he died, I got the investments dropped in my lap. But I'm a research chemist, lol the research part I'm really, really good at so I followed the old rule of doing nothing for a year until the unimaginable grief past.
Then I started investigating and interviewing FP's, I found one who was not only interested in managing my funds but also in teaching me what I didn't know. I knew enough to root out someone who put my interest first. Our game plan was in 5 years I should be able to manage my own funds.

Now don't get me wrong, I still hate it. I have not finished one investment book recommended by the bogleheads, it's still dull as dishwater. so I will probably never ever be able to hang out on an investment sight.

I think married couples just get into these rolls or rhythms and you go about the day to day living in those rolls.

lol, I'm single now and will probably remain that way so my goal now is to spend every last time dying with about 37 cents left or leave everything to the dog just to annoy my kids.
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