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except that 12% was a losing deal back then until inflation came back down ... no guarantees if it happens again they will ever get it back down again so be careful what you wish for
For the short term, yes, which meant you had to ride it down to start. But the time horizon on the 12% was 30 years, and high interest rates were not going to stay that way for three decades. If you were on the cusp of retirement and could lock in 12% a year until you were 90, it was a very very good bet. (And the bond rate was actually closer to 13%.)
I'm not taking SS at 62 because I plan to work until FRA. My Dad took it at 62 because none of his siblings had lived past 69. He lived to be 86, but had no regrets about taking it at 62.
For the short term, yes, which meant you had to ride it down to start. But the time horizon on the 12% was 30 years, and high interest rates were not going to stay that way for three decades. If you were on the cusp of retirement and could lock in 12% a year until you were 90, it was a very very good bet. (And the bond rate was actually closer to 13%.)
For the short term, yes, which meant you had to ride it down to start. But the time horizon on the 12% was 30 years, and high interest rates were not going to stay that way for three decades. If you were on the cusp of retirement and could lock in 12% a year until you were 90, it was a very very good bet. (And the bond rate was actually closer to 13%.)
When retired all you need to do is get hammered the first 5 years to effect your retirement outcome and by 15 years it is written in stone , there is no coming back even in the greatest bull market in history .....
The worst retiree group in history was 1965/1966 .... they got killed from inflation even with 12% interest rates and all...even the greatest bull market in history could not pull them back because they spent so much down in the early years when inflation soared ......this is exactly what many of those like yourself fail to realize when wishing for the high inflation again and high rates ...... they already caused that group to fail even with those rates because sequence risk is very powerful when spending down .....
I finally reached my big "decision year". Turned 62 this year. Been retired since 55.
I don't need to take it. No spouse in picture. Have a son who will inherit. I still have yet to tap IRA/Roth/401K.
Current flow (pension + taxable investment income) is more than enough to cover current expenses.
When I croak pension and SS go *poof* into the nether.
For now I'm just doing "back of the envelope" calculations to play out different scenarios.
Firecalc can do a much better job then that envelope
I have no intention of dying at my desk. I don't see the point of working past 62. The SS income stream is my ticket out of my office. I don't know how long my health will hold up. There is a mental side of this as well, that people don't talk about. If you are mired in a job that is unfulfilling, is that a wise use of your time past age 62? I talked with a woman that retired from corporate America a few years back. I was curious, so I asked her when she knew it was time to retire. She said she reached a point where she could not look at retirement finances anymore. Whatever she had, it had to be enough. I feel that way as well.
Oh boy are you right. The emotional/mental part of working at something you don't want to be doing anymore can be draining. There's a feeling like you want out and letting the chips fall where there may. It's a hard decision for some though to know when to stop. Working part time can sometimes work. I know a hospital nurse who retired at 65 and I asked her if she'd work per diem (once in a while) and she looked at me and said, "No way, I don't want to do any of this anymore." And, she meant it.
I’m retired now a full week, 61 & 4 months. No chance I will take SS @ 62 through 68 unless I find out I am terminal. I saved & invested my adult life to USE the money, not make it grow to leave to heirs. By actually using the equal of what I will get at say 68, I will not have to worry about income at all once SS kicks in. And there will still be more than enough left invested in he market if I need even more later in life. I’m waiting till that SS check is $4k/month at least.
I’m retired now a full week, 61 & 4 months. No chance I will take SS @ 62 through 68 unless I find out I am terminal. I saved & invested my adult life to USE the money, not make it grow to leave to heirs. By actually using the equal of what I will get at say 68, I will not have to worry about income at all once SS kicks in. And there will still be more than enough left invested in he market if I need even more later in life. I’m waiting till that SS check is $4k/month at least.
A good part of that is lifestyle scenario's though and not all number crunching.
Give us an example
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