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Old 05-31-2007, 02:57 PM
 
16,092 posts, read 36,594,228 times
Reputation: 6277

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"My spouse and I have lived frugally, saved and invested our money "

This is key.

If you are going to retire early, remember that you won't get SS until your mid-sixties, you will have to pay for your own insurance and you cannot make withdrawls from your 401K before 59 1/2 - so you are going to need MORE.

I have lived cheaply for so many years, I know I can do it if I need to - the thing that worries me and most others is the medical cost uncertainty.

P.S. I also have 1/2 million air miles hoarded!
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Old 06-03-2007, 02:00 AM
 
Location: san francisco bay area
300 posts, read 1,746,663 times
Reputation: 159
Quote:
Originally Posted by Lakewooder View Post
"My spouse and I have lived frugally, saved and invested our money "

This is key.

If you are going to retire early, remember that you won't get SS until your mid-sixties, you will have to pay for your own insurance and you cannot make withdrawls from your 401K before 59 1/2 - so you are going to need MORE.

I have lived cheaply for so many years, I know I can do it if I need to - the thing that worries me and most others is the medical cost uncertainty.

P.S. I also have 1/2 million air miles hoarded!
We are extremely fortunate and don't have to worry about the issues you have raised. My spouse's employer will continue to pay the same amount toward our health care plan during retirement as it currently does. Although my spouse is already 59 1/2, he does not have to have reached that age to collect his defined benefit program. The only requirement is that he have worked enough years to be vested, which he already is. Of course, the amount of the defined benefit is determined by the number of years employment, age and final 3 years salary, but because he has worked for quite some time and has earned an excellent salary, he can look forward to a very generous monthly sum along with a 2% yearly cost of living increase. I am already old enough to make withdrawals from my 401K
(TIAA/CREF) and we don't need our social security to reach our projected 100,000. And because we will have no mortgage to pay, we are certain that we will have more money than we can spend, which has been the case throughout our working lives, primarily because unlike most Americans we are not materialistic and have not fallen prey to the chronic disease of conspicuous consumption.
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Old 06-03-2007, 06:49 AM
 
16,199 posts, read 10,568,000 times
Reputation: 28845
each person is different. Some had hard times and life stuff which brought a ton of debt as in my case. I worked on figuring out how to unload all my debt and move into a one floor home and live simple with a community that has everything.
So I used my 401k to get us out of debt. Now we are free to live off of 2 pensions and social security each.
I worry about the future but If I need a job then so be it. Right now I'm having the time of my life and no debt.

Before I did this, I though what if the market were to crash or some investment fraud came along to wipe out investments. Is it really that safe? Can you really safe millions and expect it to be there when you retire?

We live simple. Like to take a trip once in a while, out to dinner, socialize with our neighbors. It is nice.
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Old 06-03-2007, 07:51 PM
 
Location: New Orleans, LA
1,730 posts, read 3,144,606 times
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My house and car are paid off, and I have no debt. I'll be retiring in three years at age 62, and I will have a small pension and social security coming in, and lifetime medical comes with my pension. I will have a few hundred thousand in my 401K and taxable. I plan to move to Springfield, Missouri, which has a very low cost of living and very low housing costs. I plan to grow vegetables in the back yard for my own consumption, and to lead a simple, healthy lifestyle.

I probably won't need much. I am living on a small fraction of my present income right now so living frugally won't be a big adjustment. I will probably have a little more to spend on extras in retirement than I do now.

REALLY looking forward to this next phase in life.
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Old 06-13-2007, 09:59 AM
 
2 posts, read 8,222 times
Reputation: 10
Default Self Directed IRA

Hi Everyone ! Has anyone ever heard of a self directed IRA? Pro's and Con's? Are they really expensive normally? Do you really have control or do you have to beg the custodian for your money?
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Old 06-13-2007, 03:56 PM
 
Location: Atlanta
738 posts, read 644,785 times
Reputation: 279
Yes, I have a self-directed SEP. It is a little harder to find an administrator (talk to the Trust Dept.s of large banks) and understanding the arm's length restrictions on self dealing. I do a lot of real estate investment deals in mine - not buying property - just loaning builders the equity they need for construction projects. I get a nice 25% annual return, tax-deferred, and my loans are very secure. They must be paid off, with interest, for the house to sell.
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Old 06-15-2007, 12:58 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,590,635 times
Reputation: 5692
I hope there is a mobile home somewhere in Alabama with our name on it. Just kidding. There is a fun site to check on retirement funds if you do not have a financial advisor. It is Dinkytown Financial.
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Old 06-16-2007, 05:43 AM
 
Location: VA
786 posts, read 4,322,040 times
Reputation: 1117
Most people retire in America with less than $100K in their Bank Accounts and 401(K) and use Social Security for 70% of their income and still survive.
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Old 06-16-2007, 09:54 AM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,590,635 times
Reputation: 5692
We are not confident that Social Security will be there for us so we don't include it in our retirement. With the masses coming to this country, even if they contribute to the pot, there will not be enough to support millions of low wage earners when they retire. Someone will have to foot that bill and it will be the boomers and their kids paying more taxes and receiving less. I like Ben Steins "Yes you can still retire comfortably." It is a good read.
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Old 06-24-2007, 08:41 AM
 
Location: Sherman Oaks, CA
6,239 posts, read 15,455,705 times
Reputation: 8110
How much I'll need really depends on where I'll be living and what I'll be doing when I retire... I plan to work until I'm at least 70, anyway. I can't even touch social security's full benefits until I'm 67 (if social security exists in the same way it does today I'll be truly amazed, though!), and I need more of a cushion to feel comfortable. My grandmother lived to be 87, and I have an uncle who's 80. I feel reasonably confident that I'll live to be in the upper 80s to low 90s, so we're talking about planning for at least 20 years, maybe longer. I just hope my health holds out, of course. The one thing I'm not doing is relying on anyone else to take care of me. My kids will have their own families to worry about, and it would be selfish of me to be a burden on them if I don't have to be.
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