BajaNomad - When to retire?

When to retire?

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Streetrod - 9-24-2016 at 11:16 AM

Hi, my name is and Gord and I am a newbie to this forum. I started reading this forum about 2001 and got a lot of good advice that I used on my trips to Baja. This retirement topic came at the right time for me. I took my CPP at 60 and in a month I get OAP. I had an accident at work in July and off work for 3 weeks. This changed my mind about working longer at this job. Work slowed down, so I asked for layoff and qualified for EI.NowI can look for a1 or 2 day a week job to make Mexico money This is the plan anyways!

MitchMan - 9-24-2016 at 12:01 PM

Some of my friends were grade school teachers for just over 30 years in South Orange County (Mission Viejo) and now recently retired. They all got their masters degrees about 10 years into their teaching career. They get over $85,000 USD per year each in retirement. Not bad for two married teachers pulling in over $170,000 per year per household with their 3500 sq ft fully paid for home.

I do not begrudge their benefit one bit. They started teaching at $13,000 per year when I was making $35,000 per year, both of us with the same number of years of education. They did their job well, dependably and consistently for 30 years imbedding knowledge and upstanding moral principles in the youths of America. It could be argued that they contributed the most to the best in our American society than most of us outside our own homes.

While they will enjoy much more financial advantage than most of us by leaps and bounds in our retirements, that doesn't mean that the rest of us couldn't enjoy a safe and fulfilling retirement with much, much less; even 70% less if you choose to be wise enough to live frugally and smart.

I don't waste time lamenting their retirement benefits compared to mine or to the vast majority of others. Unlike the wealthy few in business who got theirs by gaming the rest of us. The Teachers and firemen didn't game us, many entrepreneurs did and do game us, every day, all the time, still.

You know, there are many things that are fun and fulfilling to do that will bring income in your retirement if more income is what you want while retired. Never too late to learn something new that is interesting, different, productive, and generates some income. Make it fun, be frugal, open your mind to new places to live and different life styles. A lot of those things can be really low costing.

I have been teaching part time to seniors for 19 years (will retire from that at the end of this year). We discuss retirement all the time. The differences among them with regard to life style and finances vary by multiples. The ones that really have it together know the value of a dollar and are open minded and flexible in their ability to live in different cultures and in different countries.

The amount of money it takes to live in two to three different countries at different times of every year is about the same amount of money it takes to live in one 1600 sq ft home in Orange County, California all year and can easily be 1/3 the cost if you choose to live in some other very acceptable place other than Orange County, California altogether.

So, more often than not, it is how you spend your money and not how much money you have. I know many people that are retired and have a lot of money, but they are not nearly as fulfilled as they should be because their minds are not open, they are not culturally flexible, they feel trapped in a boring repetitious life style, they will not teach themselves new things, they have no sense of adventure, and they are unwilling to reinvent themselves...nothing to do with how much your pension is.

[Edited on 9-24-2016 by MitchMan]

Lobsterman - 9-24-2016 at 02:32 PM

Quote: Originally posted by Whale-ista

Good discussion- it's been on my mind recently.

As for "double dipping"- that's describing my situation: I worked enough and paid enough into SS to earn a modest check, but I've also worked as a teacher- and so my SS will be reduced as a result of earning a pension. Not sure how those calculations are made by the SSA.
..........................................................................................
Whale-ista
What you are talking about is SSA's Windfall Elimination Program, commonly known as "WEP". Basically there is a 60% deduction from your SS check if you only have 40 quarters of SS earnings out of 120 quarters. It goes up from there. Each additional quarter you work you replace a $0 quarter in the 30 years of your SSA record. In my case I received $326 once I retired after not paying into SS since 1977. I worked over 40 quarters by then before going into federal service for 37 years. I've worked part time since retirement in 2011, about 3-4 months per year, and my SS has gone up slowly to $385 today. Hey it pays for bait and expenses to run my boat.

I tried a full retirement for a year but missed the travel to cool locations (golf, fishing & sightseeing), the comradeship of fellow workers, the physical exercise, and the mental simulation of complicated projects. With my wife's recent retirement she can now travel with me. I plan on working like this until my body no longer cooperates. The extra bucks are used for road and fishing trips to places we have not been before. Currently, we are on a road trip from San Diego to Alabama to play the Robert Trent Jones Trail golf courses while traveling the back roads to see America and meet its friendly inhabitants.

Skipjack Joe - 9-24-2016 at 11:26 PM

The idea that the mind is active while employed and becomes stagnant with retirement was not my experience. The opposite is true. My interests now are more varied and there are lots of projects. And I'm rarely bored. It seems as though before retirement most of your energy goes into practical matters and now pursuing satisfaction plays a bigger role.

BajaMama - 9-25-2016 at 07:20 AM

Our retirement SS will be bonus income - our 401K and other investments will be our primary source of income. SS was designed to keep the aged out of poverty. But if you want to retire above that you better have save and invested!

[Edited on 9-25-2016 by BajaMama]

DBoisclair - 9-25-2016 at 08:29 AM

My $.02 for consideration. I'm a Canadian so my frame of reference may not be the same as yours but the concepts are the same.

In my mind there are two considerations.......
1. Your health and/or your family heath history. Not to be harsh but if you're a young, active 57 year old, who's parents lived to be 90+, odds are you'll have a long active retirement and the worst thing would be outliving your income. The only thing worse than being old is being old and poor. On the other hand, if you're overweight, a smoker or have poor health in your family, better to enjoy retirement now, rather than waiting and then have something happen. It's like Survivor; you don't want to be voted out with an immunity idol still in your pocket.

2. The other consideration is what do you make now and what would you collect in retirement benefits. After that it's simple math. You're effectively working full time for the difference. If you're earning $75,000 and your pensions would be $45,000 - ask yourself if you'd do this job for $30,000. If the answer is no, retire. And don't forget, it's not a one-way street. Nothing says you can't semi-retire, take your pensions and then go back part-time somewhere to make up the difference.
Cheers

fishbuck - 9-25-2016 at 11:38 AM

I have the "2nd career" fantasy too. Retire at 58 and get out of the factory.
I think I might like working as flight instructor. I've flown out of Brown Field in San Diego and it's access to Baja is the best. It's an airport of entry and lots of bizjet traffic in from Cabo etc.
So a good place for a pilot to make contacts and maybe a job flying right seat of a Lear Jet that makes baja runs.
So retire and go play "airport bum" and try to make something happen. It could happen! :coolup:

[Edited on 9-25-2016 by fishbuck]

AKgringo - 9-25-2016 at 11:54 AM

Quote: Originally posted by DBoisclair

My $.02 for consideration. I'm a Canadian so my frame of reference may not be the same as yours but the concepts are the same.

Cheers

Yeah...but that is only $.015 USD!

fishbuck - 9-25-2016 at 11:59 AM

A little math indicates I would need to work to survive after retiring at 58 so I need to tough it out as long as possible at my job. 30Gs net/year (my pension) ain't gonna cut it to try and live the dual SoCal/Baja life that I'm looking for.
Maybe at 62 when I get SS but even then probably about 45Gs net/year. Still a bit slim.
So thinking cap back on.

Osprey - 9-25-2016 at 01:22 PM

Mitchman is on to something. For almost 40 years I wrote nothing but short business letters. Not long after I retired I studied creative writing and with trial and error (mostly error) I found a perfect hobby for this kind of hand to mouth retirement I had carved out close to San Lucas.

It is important to take care of your health but your mental health is even more important and more challenging --- ask those artsy folks all over Todos Santos how they like living there and their answer will be all about their avocations, how they occupy their minds as well as their spirits.

There are uncountable ways one can spend time with hobbies that cost almost nothing. I'll be 80 years old next month and although my body is frail, my mind is active and at peace -- my days and nights are full of the wonders of mind-travel, schemes and plans and story lines that are free and fun and fulfilling. I came down here when I turned 58 and I've never been back to the states.

So it's important about the when but it's damned important about the "What's next".

fishbuck - 9-25-2016 at 01:41 PM

Yeah you guys are right on about that part.
I think I am doubting how long I can keep my soul alive in that spirt crushing factory enviornment.
Dreaming about Baja and the idea that it's getting closer may be all I have left.
So thank you all for indulging me about this.
Looks like I better make a airline res down to Sandy Eggo and rent me a little car for about a 4 day mini retirement and see if I can restore my lifeforce a little down in mother baja...
Maybe I can make it a little longer.... :coolup:

[Edited on 9-25-2016 by fishbuck]

David K - 9-25-2016 at 01:53 PM

Give me a call when you are down here if around for a bit.

fishbuck - 9-25-2016 at 01:59 PM

Quote: Originally posted by David K

Give me a call when you are down here if around for a bit.

Thanks. Will do. Can we meet at In n Out?
I'm dying for a double double! :bounce:

DENNIS - 9-25-2016 at 02:45 PM

Hey, Mike. be the fireman you always wanted to be and get a big fat disability check. One or two tip-overs on your barstool should get you there.

David K - 9-25-2016 at 03:00 PM

Quote: Originally posted by fishbuck

Quote: Originally posted by David K

Give me a call when you are down here if around for a bit.

Thanks. Will do. Can we meet at In n Out?
I'm dying for a double double! :bounce:

There is one a mile from me, and I have never been to it! On the road we do get double-doubles, however, yum!

Bajahowodd - 9-25-2016 at 03:20 PM

I know it is not completely related although Tijuana resident Adrian Gonzalez does play for the Dodgers. I was a 4 year old kid when I first heard the voice of Vin Scully back in Brooklyn. I apologize if I failed to find a thread on this, but we are looking at history being made in the next few days.

As I mentioned, if there is a thread about this iconic broadcaster, please point me to it.

[Edited on 9-25-2016 by Bajahowodd]

fishbuck - 9-25-2016 at 08:04 PM

Quote: Originally posted by DENNIS

Hey, Mike. be the fireman you always wanted to be and get a big fat disability check. One or two tip-overs on your barstool should get you there.

I been trying but their on to me DENNIS. But you never know what sort of dangerous things can hanpen. A few years back a guy got run over by a 787.

Hook - 9-26-2016 at 09:06 AM

I'm always amazed when people decry government workers making a decent wage and having a decent pension, compared to persons in private industry.

It wasn't very long ago when just the opposite was true. What's changed?

What changed is that government jobs are service oriented jobs that cant be shipped overseas. Private industry jobs involve manufacturing and selling goods and they shipped those overseas. Then the remaining jobs, they stripped of decent benefit programs. Now, corporations sit on these huge piles of cash, paying out exorbitant wages to execs and buying back company stock, instead of investing in America. Wages, overall, continue to drop.

Government workers retirements only look excessive in the light of how poorly private industry retirements look.

And people wonder why the economy can't get going like it was in the 50s-60s-70s.

American corporate greed happened. Don't blame government workers because no one has figured out a way to ship teachers and first responders jobs overseas.

Now, there is this belief that because corporations screwed their employees out of retirements, why shouldn't government screw their employees out of pensions, too. Why shouldn't everyone be screwed together?

And people wonder why the economy can't get going like it was in the 50s-60s-70s.

Apparently, JoeJustJoe is also not aware that there are INDEPENDENT financial planners that sell no products.

I am continually bemused by how ignorant JJJ is about so many of the things he rails about.

[Edited on 9-26-2016 by Hook]

motoged - 9-26-2016 at 09:12 AM

Pensions aside, retirement for single folks is another story....as there are two potential sources of income....

I heard a Nomad say he was "looking for a nurse with a purse"....which could be another retirement plan.

It may or may not be worth the price of admission..... :light:

A nurse with a purse!

AKgringo - 9-26-2016 at 10:58 AM

Coincidentally, I heard from a long time former girlfriend this week. She is an RN, and does a lot of travel assignments, and wants to visit for a week or two on the way to her next assignment. Maybe this is an omen!

JoeJustJoe - 9-26-2016 at 12:36 PM

Quote: Originally posted by Hook

I'm always amazed when people decry government workers making a decent wage and having a decent pension, compared to persons in private industry.

It wasn't very long ago when just the opposite was true. What's changed?

What changed is that government jobs are service oriented jobs that cant be shipped overseas. Private industry jobs involve manufacturing and selling goods and they shipped those overseas. Then the remaining jobs, they stripped of decent benefit programs. Now, corporations sit on these huge piles of cash, paying out exorbitant wages to execs and buying back company stock, instead of investing in America. Wages, overall, continue to drop.

Government workers retirements only look excessive in the light of how poorly private industry retirements look.

And people wonder why the economy can't get going like it was in the 50s-60s-70s.

American corporate greed happened. Don't blame government workers because no one has figured out a way to ship teachers and first responders jobs overseas.

Now, there is this belief that because corporations screwed their employees out of retirements, why shouldn't government screw their employees out of pensions, too. Why shouldn't everyone be screwed together?

And people wonder why the economy can't get going like it was in the 50s-60s-70s.

Apparently, JoeJustJoe is also not aware that there are INDEPENDENT financial planners that sell no products.

I am continually bemused by how ignorant JJJ is about so many of the things he rails about.

[Edited on 9-26-2016 by Hook]

Hook is only partially right why the tables have turns for government workers, who used to have low paying government jobs, but always had good benefits, and job protection from being fired.

Yes, many jobs manufacturing jobs did go overseas where US corporations can get away with paying near slave wages with little to no benefits, but something else has been going on over the years, and that's the destruction of company unions by powerful companies that spend millions of dollars on anti-union activities, and anti-union propaganda on workers at such places like Walmart, where unbelievably, the workers routinely workers vote against their best interests and vote no to the union.

The US government doesn't play that type of hardball, and for the most part, unions membership is very high with government workers, and that's why government workers have pretty good paychecks, and extremely good benefits.

On average, a union worker will make about $3 or $4 dollars more an hour than non-union workers, and the benefits are not even close when you compare a union worker to a non-union worker's benefits, especially in regards to a pension. ( the private non-union sector has just about done away with workers pensions in most industries)

I'm not one to really bash government workers, like teachers, firemen, or pig cops, because they have a good paycheck and an extremely good benefits and pensions that allow them to retire early.

The only thing I said, is don't ask me to feel sorry for a school teacher,with two pensions, and is double-dipping in social security. although in many cases they did have a first job where did they contribute to social security. ( I rather feel sorry for the homeless)

Yes, Hook, I'm aware of INDEPENDENT financial planners that sell no products, but the thing about independent financial planners, is that sell no products, have high fee that they charge before or right after they give you that supposedly independent financial advice.

So that probably eliminates the majority of "Baja Nomad' members, who may be reaching retirement age but are lucky to have $50,000 dollars in a 401K and a few thousand dollars in equity in their house.

Do you really expect these people to pay about $1000 dollars for a two hour one time consultation and up to $6000 dollars a year for a yearly for a two-part annual retainer plan that in the end will probably steer you to their friends in the same financial consulting trade. It's all a racket.

Oh their financial friends, won't rip you off either, with a churn and burn, but rather they will take a flat fee of only 2 percent of your investment monies. Of course if you only have $50,000 dollars, they are going to laugh at you and kick you out of the office.

I wish I could tell people to avoid going to financial planners, because most people will get bad financial advice, and those advisers usually put their interests first regardless of the hat they wear or title they give themselves, but sadly most people are such poor investors, that they do need help.

[Edited on 9-26-2016 by JoeJustJoe]

DENNIS - 9-26-2016 at 01:52 PM

Ain't many nurses with purses hangin' around in Anthony's.

Martyman - 9-26-2016 at 04:05 PM

[rquote=1049909&tid=84054&author=JoeJustJoe
Yes, Hook, I'm aware of INDEPENDENT financial planners that sell no products, but the thing about independent financial planners, is that sell no products, have high fee that they charge before or right after they give you that supposedly independent financial advice.

So that probably eliminates the majority of "Baja Nomad' members, who may be reaching retirement age but are lucky to have $50,000 dollars in a 401K and a few thousand dollars in equity in their house.

Do you really expect these people to pay about $1000 dollars for a two hour one time consultation and up to $6000 dollars a year for a yearly for a two-part annual retainer plan that in the end will probably steer you to their friends in the same financial consulting trade. It's all a racket.

Oh their financial friends, won't rip you off either, with a churn and burn, but rather they will take a flat fee of only 2 percent of your investment monies. Of course if you only have $50,000 dollars, they are going to laugh at you and kick you out of the office.

I wish I could tell people to avoid going to financial planners, because most people will get bad financial advice, and those advisers usually put their interests first regardless of the hat they wear or title they give themselves, but sadly most people are such poor investors, that they do need help.

[Edited on 9-26-2016 by JoeJustJoe][/rquote]

Good advice Joe. There are a lot of financial planners that take advantage of people who know nothing about investing, and proceed to nickel and dime everything away. I guess some can afford the 2-3% fees. Not me!

bajaguy - 9-26-2016 at 04:18 PM

It appears that you might be dealing with the wrong financial planners

As with everything, especially when dealing with (your) money, do your due diligence.

We started seeing a FP about 15 years ago and with the investment strategy and options she suggested we were able to (both) retire, pay off our US house, get a place in Baja, live comfortably......and continue to make money. We have no financial needs and can go where we want and do what we want

It's all about choices.......if you think you know more than a professional financial planner, more power to you

Quote: Originally posted by Martyman

[rquote=1049909&tid=84054&author=JoeJustJoe
Yes, Hook, I'm aware of INDEPENDENT financial planners that sell no products, but the thing about independent financial planners, is that sell no products, have high fee that they charge before or right after they give you that supposedly independent financial advice.

So that probably eliminates the majority of "Baja Nomad' members, who may be reaching retirement age but are lucky to have $50,000 dollars in a 401K and a few thousand dollars in equity in their house.

Do you really expect these people to pay about $1000 dollars for a two hour one time consultation and up to $6000 dollars a year for a yearly for a two-part annual retainer plan that in the end will probably steer you to their friends in the same financial consulting trade. It's all a racket.

Oh their financial friends, won't rip you off either, with a churn and burn, but rather they will take a flat fee of only 2 percent of your investment monies. Of course if you only have $50,000 dollars, they are going to laugh at you and kick you out of the office.

I wish I could tell people to avoid going to financial planners, because most people will get bad financial advice, and those advisers usually put their interests first regardless of the hat they wear or title they give themselves, but sadly most people are such poor investors, that they do need help.

[Edited on 9-26-2016 by JoeJustJoe][/rquote]

Good advice Joe. There are a lot of financial planners that take advantage of people who know nothing about investing, and proceed to nickel and dime everything away. I guess some can afford the 2-3% fees. Not me!

ncampion - 9-26-2016 at 05:02 PM

When you talk about how great government pay, benefits and pensions are compared to private industry you have to remember that the Government is currently almost $20 trillion in debt. They borrow money every month to pay those great benefits. No private company could get away with that. Someday that will come crashing down on the Government as well.

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