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Old 03-05-2011, 07:01 PM
ifa ifa started this thread
 
294 posts, read 414,062 times
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I had a meeting at work the other day with a financial counselor, to talk about retirement. I told him my plan, and asked him if it sounded crazy, and he said no. I am 58 now and I want to retire from my job in 3 years, when I'm 62. At that time, I will be eligible for inexpensive health insurance for the rest of my life, through my employer. So that means I would not have to buy expensive health insurance while waiting to be eligible for Medicare at age 66. I would get about $14k a year from Social Security. I could get about $21k a year if I bought $300k worth of immediate annuities (depending on what interest rates are in 3 years). So my base income would be about $35k a year, and I would still have about $200k left to invest. I could also work part-time or freelance if necessary.

I currently make about $75k a year, take home less than $50, and live on half of that. So my $35k retirement income would be a lot more than what I live on now. I would have extra money for emergencies and expenses. And I could probably do some kind of work, although preferably not full time.

I definitely want to do this. One reason is that I am afraid of age discrimination. Another reason is that I love having free time to spend on the things I love doing and am interested in. I like to work, but it takes up too much of my time. So I have been good about saving. I have a good salary and I could have been living in a big house and taking expensive vacations. But having free time is what matters to me, so I have been living simply.

Well the financial counselor thought it made sense. It makes sense to me. I definitely feel I need to get free of my job asap.

I like to work and I like what I do at my job. But as I get older, my co-workers get younger and that worries me. I feel like I belong elsewhere. I do not want to feel stuck there any longer than I have to be. That's 3 years. I want to be somewhere else, whether working or just enjoying life.

I have started counting how many more Mondays I have to be in that office.

This is my plan, and I don't think it is crazy. I thought I would post it here and see if anyone agrees.
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Old 03-05-2011, 08:35 PM
 
Location: Los Angeles area
14,017 posts, read 19,621,576 times
Reputation: 32487
Default Good plan, and a minor correction

Quote:
Originally Posted by ifa View Post
I had a meeting at work the other day with a financial counselor, to talk about retirement. I told him my plan, and asked him if it sounded crazy, and he said no. I am 58 now and I want to retire from my job in 3 years, when I'm 62. At that time, I will be eligible for inexpensive health insurance for the rest of my life, through my employer. So that means I would not have to buy expensive health insurance while waiting to be eligible for Medicare at age 66. I would get about $14k a year from Social Security. I could get about $21k a year if I bought $300k worth of immediate annuities (depending on what interest rates are in 3 years). So my base income would be about $35k a year, and I would still have about $200k left to invest. I could also work part-time or freelance if necessary.

I currently make about $75k a year, take home less than $50, and live on half of that. So my $35k retirement income would be a lot more than what I live on now. I would have extra money for emergencies and expenses. And I could probably do some kind of work, although preferably not full time.

I definitely want to do this. One reason is that I am afraid of age discrimination. Another reason is that I love having free time to spend on the things I love doing and am interested in. I like to work, but it takes up too much of my time. So I have been good about saving. I have a good salary and I could have been living in a big house and taking expensive vacations. But having free time is what matters to me, so I have been living simply.

Well the financial counselor thought it made sense. It makes sense to me. I definitely feel I need to get free of my job asap.

I like to work and I like what I do at my job. But as I get older, my co-workers get younger and that worries me. I feel like I belong elsewhere. I do not want to feel stuck there any longer than I have to be. That's 3 years. I want to be somewhere else, whether working or just enjoying life.
I have started counting how many more Mondays I have to be in that office.

This is my plan, and I don't think it is crazy. I thought I would post it here and see if anyone agrees.
Your plan sounds very sensible to me. The minor correction would be what I bolded; one becomes eligible for Medicare at age 65, not 66. You may be confusing it with the Social Security full retirement age, which is 66 for people in your age bracket.
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Old 03-05-2011, 08:54 PM
 
Location: Pennsylvania
22,344 posts, read 13,290,580 times
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sounds good as far as the financial aspect goes but you seem a little vague about what you want to do when you retire. You might start thinking about that-maybe develop some interests, or hobbies. Make plans to travel or take classes. you've got the money part down-now how about the 'you' part?
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Old 03-05-2011, 09:39 PM
 
Location: Great State of Texas
86,068 posts, read 79,464,031 times
Reputation: 27673
Sounds like a good plan to me.
The income and healthcare is covered.
What to do with all that free time though..that's the next thing to work on.

If you don't need the money there's volunteer work in schools, libraries, hospitals.
Keeps ya busy and you can meet up with others having a common interest.
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Old 03-05-2011, 09:45 PM
 
31,367 posts, read 38,413,891 times
Reputation: 13755
Quote:
Originally Posted by ifa View Post
I had a meeting at work the other day with a financial counselor, to talk about retirement. I told him my plan, and asked him if it sounded crazy, and he said no. I am 58 now and I want to retire from my job in 3 years, when I'm 62. At that time, I will be eligible for inexpensive health insurance for the rest of my life, through my employer. So that means I would not have to buy expensive health insurance while waiting to be eligible for Medicare at age 66. I would get about $14k a year from Social Security. I could get about $21k a year if I bought $300k worth of immediate annuities (depending on what interest rates are in 3 years). So my base income would be about $35k a year, and I would still have about $200k left to invest. I could also work part-time or freelance if necessary.

I currently make about $75k a year, take home less than $50, and live on half of that. So my $35k retirement income would be a lot more than what I live on now. I would have extra money for emergencies and expenses. And I could probably do some kind of work, although preferably not full time.

I definitely want to do this. One reason is that I am afraid of age discrimination. Another reason is that I love having free time to spend on the things I love doing and am interested in. I like to work, but it takes up too much of my time. So I have been good about saving. I have a good salary and I could have been living in a big house and taking expensive vacations. But having free time is what matters to me, so I have been living simply.

Well the financial counselor thought it made sense. It makes sense to me. I definitely feel I need to get free of my job asap.

I like to work and I like what I do at my job. But as I get older, my co-workers get younger and that worries me. I feel like I belong elsewhere. I do not want to feel stuck there any longer than I have to be. That's 3 years. I want to be somewhere else, whether working or just enjoying life.

I have started counting how many more Mondays I have to be in that office.

This is my plan, and I don't think it is crazy. I thought I would post it here and see if anyone agrees.
The cynical side of me asks if the financial counselor is also selling you the annuity. If so I would have concerns since the annuity payout is dependent on interst rates yet he gave you a baseline payout that could be less? You will know what those rates are if you are buying the annuity then and you will know if it still works. If it is a variable rate annuity and rates fall will you still be able to make it etc etc. At any rate best of luck.
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Old 03-05-2011, 09:52 PM
 
Location: Great State of Texas
86,068 posts, read 79,464,031 times
Reputation: 27673
Immediate Annuities - Instant Annuity Quote Calculator.

There's an annuity calculator you can play with. This is for fixed annuities.
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Old 03-06-2011, 05:05 AM
ifa ifa started this thread
 
294 posts, read 414,062 times
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Thanks everyone! My plan regarding immediate fixed annuities is to buy about 6 of them, $50k each, all from different triple A rated insurance companies. No, the financial counselor wasn't trying to sell me anything, and he agreed that I should buy most of them from other companies.

As for what I'll do with my time when I'm retired -- I have that planned out also. I have many interests and hobbies that I love. I have been thinking ahead with that also, and have been getting involved in social things and volunteer work, so I won't be isolated.
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Old 03-06-2011, 09:26 AM
 
Location: SoCal desert
8,092 posts, read 14,468,429 times
Reputation: 14927
Quote:
Originally Posted by ifa View Post
I currently make about $75k a year, take home less than $50, and live on half of that. So my $35k retirement income would be a lot more than what I live on now. I would have extra money for emergencies and expenses. And I could probably do some kind of work, although preferably not full time.
Don't forget taxes on that 35k retirement income. But since you currently live on 25k, you shouldn't have any problems.

Quote:
Originally Posted by ifa View Post
I have started counting how many more Mondays I have to be in that office.
I hear ya!
I have a countdown calender on my computer that gives months, days, hours, minutes, and seconds remaining

Last edited by Gandalara; 03-06-2011 at 09:42 AM.. Reason: punctuation fix
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Old 03-06-2011, 11:09 AM
ifa ifa started this thread
 
294 posts, read 414,062 times
Reputation: 377
Quote:
Originally Posted by Gandalara View Post
Don't forget taxes on that 35k retirement income. But since you currently live on 25k, you shouldn't have any problems.

About how much would the income tax be on $35k? I would not be paying SS anymore, at least.


I hear ya!
I have a countdown calender on my computer that gives months, days, hours, minutes, and seconds remaining
I need to get that calendar. I want to count the seconds!
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Old 03-06-2011, 02:25 PM
 
Location: SoCal desert
8,092 posts, read 14,468,429 times
Reputation: 14927
Quote:
Originally Posted by ifa View Post
I need to get that calendar. I want to count the seconds!
Check your DM's, I sent you the link
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