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Hook
Elite Nomad
Posts: 9006
Registered: 3-13-2004
Location: Sonora
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Mood: Inquisitive
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Financial planners, as little as ten years ago. were encouraging people to retire at 62. The thinking was that even the reduced amount you accept
between 62 and your full retirement age, will more than equal the amount you collect from your full retirement age till the day you die. Also figuring
into this was that today's dollars would be worth more than age 66 dollars and taxation rates would likely increase.
Then, inflation became almost nil (at least according to the gubment's suspicious way of figuring it), income taxes have remained largely the same and
people began living longer. The rationale for taking SS early has changed.
Motoged, we Americans don't have TWO forms of retirement income from the gubment, like you Canadians do. At least as it has been explained to me by my
Canadian friends, you get one at some age around 60 and then another around 65 or something.
We get one IF we have worked jobs that paid into the system. Those who never payed anything into the system, often don't qualify.
So, the timing of taking it can vary greatly, from individual to individual. I dont recall our gubment officially suggesting going early or later. But
independent financial planners have begun recommending taking it as late as you can, unless you have a major financial or medical reason to take it
early.
Oh, yeah, one last thing. The rich ARE generally ELDERLY. Last time I looked at demographics in wealth, the elderly are far wealthier that every other
age demographic. They worked at times when there were good jobs in America with good benefits. They've had their entire lives to accumulate wealth.
Now, a high percentage of those jobs are overseas where corporations could get away with paying peanuts for usually lesser quality.
And people wonder why our economy cant seem to get going again with all the "free money" (cheap loans) being passed out.............
[Edited on 9-21-2016 by Hook]
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Shadowman
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I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working!
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SFandH
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Posts: 6926
Registered: 8-5-2011
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Quote: Originally posted by motoged  | | Quote: Originally posted by SFandH | | Quote: Originally posted by motoged |
Plan may well be to use the next two years to downsize my stuff and get the house ready to sell...and then see what's what.
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Sell the house? Are you planning on buying another? Having a paid off house is a great thing to have when retired. I wouldn't want to be at the mercy
of a landlord considering how steadily rent increases.
I think having fixed housing costs is key to a successful retirement. |
House is paid for....certainly not decided about selling it....but have given lots of thought about trailer life.
No, I would not buy another place if I did sell...as it ties up the equity....renting might be a better option....but need to think on that a lot
more....love the house but I don't need all the space... |
"love the house"
Don't sell it unless you NEED the money. A couple of years (maybe months) in a trailer and you'll be dreaming about the house and all the space you
don't need while you're kicking yourself in the butt cuz you sold the house.
You own a piece of the rock that is getting more valuable with each tick of the clock, hang onto it!
Will it to someone, me for instance, it will be dearly appreciated.
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TMW
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Location: Bakersfield, CA
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| Quote: Originally posted by Shadowman | I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working! |
Probably because you like what you are doing at work.
I have a friend in LA that owns his own company. He did not take SS until 70. He is now 73 and thinking of selling his company or just going out of
business. Him and I have discussed him retiring for several years and we both agreed that as long as he liked what he was doing to keep doing it. Last
weekend we went to the Randsburg Old West Days and while having dinner he told me the technology was passing him by and he had no interest in keeping
up with it and was seriously thinking of retiring. I think it is his time.
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fishbuck
Banned
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Registered: 8-31-2006
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| Quote: Originally posted by Shadowman | I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working! |
Those beautiful wives can be expensive is my guess.
"A ship in harbor is safe, but that is not what ships are built for." J. A. Shedd.
A clever person solves a problem. A wise person avoids it. – Albert Einstein
"Life's a Beach... and then you Fly!" Fishbuck
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msteve1014
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| Quote: Originally posted by Shadowman | I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working! |
You are a dumb ass.
I retired at 55 with a good pension and medical. My wife liked her job and made good money so she wanted to work a little longer. She died at 57, 8
months before she was going to quit.
Fishbuck, go as soon as you think you can.
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basautter
Senior Nomad
Posts: 862
Registered: 7-1-2013
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ASAP 
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CatCrazyJulie
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Location: Morro Bay, CA
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I haven't seen this suggestion yet, so will put it out there:
Check out the "Retire Early Lifestyle" website: http://retireearlylifestyle.com/
The website creators retired when they were 38, selling a nice house and biz in the SF Bay Area, and investing the money. They've been travelling and
living in different countries ever since. They're now about 60. Part of their reason for figuring out a way to retire early was that there were a
lot of things they wanted to do that they didn't think their bodies would be up to when they were older.
Sometimes on their website they include a list of their day-to-day spending as they travel around various countries. While traveling in Mexico, they
took public buses. They have a cheap (like $15) pdf book available for download with a lot of practical info, and info on how to figure out whether
you're ready to take the leap. And every month their website has stories and columns by other people. There's a lot of "retire early" folks out
there. It's inspiring to read about how people make it work.
My husband and I are divers, and that's figured into our thinking. You don't see a lot of 75-year-old divers out there:-). So we've taken the leap,
even though he's 62 and I'm 59. And it's a good thing, since this year has ended up being a "rebuild" year for me, with 3 surgeries, including neck
disk fusion (non-optional), and bicep reattachment and surgery on a torn rotator cuff. Feels like the universe is saying "get healthy and go play!"
(Fortunately, Mark retired with great health insurance.)
I may do part-time work from time to time (since I enjoy my work), and if something ideal falls into Mark's lap, he might take it on. But his last 5
years at work were not fun, due to management changes, and he really needed to get out of his job. He's so happy now!
We don't have quite as much $$ for retirement as we'd ideally like, but it looks like we can make it work. Maybe get creative and spend a full year
in Baja in our trailer, and rent out our CA house to generate some extra $$$. I use spreadsheets and mint.com to help with tracking spending and
planning. It helps me not worry about the money, knowing exactly where we stand.
If you love your work, that's an argument for continuing to work, because you're enjoying life while you're working. Especially if you have ample
vacation time to spend in Baja. But if the only reason that you're working is for the money, but otherwise you'd jump ship...figure out a way to make
it work financially to have the life you want.
Check out "Retire Early Lifestyle".
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DavidT
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Retire at 30
David
Not one shred of evidence supports the notion that life is serious.
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JoeJustJoe
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| Quote: Originally posted by Shadowman | I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working! |
Why are you still working?
Probably because you woke from that dream of owning million dollar homes, having a beautiful wife, and being debt free.
BTW what's a RSP? Are you taking about a Canadian RRSP?
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ehall
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Posts: 1906
Registered: 3-29-2014
Location: Buckeye, Az
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Mood: It's 5 o'clock somewhere
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| Quote: Originally posted by Shadowman | I have a 1.5 m$ house and .5m$ waterfront home on the Baja. 1.7 million in savings and RSP (401 equivalent). I am 58 with a beautiful wife. I owe
nothing.
Why am I still working! |
If that's pesos you better keep working.
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pauldavidmena
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Posts: 1688
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Location: Centerville, MA, USA
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I'm also 57, and have been working in the IT field for 33 years. I still like what I do, but it's definitely a young man's world, and I'm now playing
the role of the silver-haired veteran who's seen it all. At this point my nest is empty, I'm debt-free and trying to save every penny possible. So I
have the same basic questions you do: when do I hang up my cleats? When do I draw on my social security?
As others have advised, in addition to using an on-line retirement calculator (there are plenty of those) I talked to a financial planner - two of
them, actually (our accountant, and an investment adviser). Both agreed on two things: that I could probably afford to retire at 60, and that I should
delay drawing on my social security until 67.
I've thought of delaying my retirement to 62, but then I ask myself: why? I'm still in good health, but can no longer take that for granted. I had
major back surgery a year ago, and over the weekend I fell down a flight of stairs and banged myself up pretty well. I think my body is trying to tell
me something, and it always gets the deciding vote...
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DENNIS
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An important prerequisite to retirement is having your hobbies in order. Dead time will collect you faster than anything else.
"YOU CAN'T LITTER ALUMINUM"
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ehall
Super Nomad
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Location: Buckeye, Az
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Mood: It's 5 o'clock somewhere
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| Quote: Originally posted by DENNIS |
An important prerequisite to retirement is having your hobbies in order. Dead time will collect you faster than anything else.
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Happy hour doesn't count either
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DENNIS
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That seems to be the problem. Without real hobbies, life turns into a happy hour for a while anyway.
"YOU CAN'T LITTER ALUMINUM"
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rocmoc
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Mood: Live today like it maybe your LAST!
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Loved my career. Retired very early and loved being retired more.
rocmoc n AZ/Fld/Baja
rocmoc n AZ/Mexico
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JoeJustJoe
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I see a lot of personal advice from other members frame of reference, and typical stuff you hear like getting a financial adviser's opinion.
One of the last person's advice I would get is from a financial advisory, who is probably more interested in his retirement plan than yours, although
he sure would love you to retire early so he could churn your account or make a fee off your account.
I haven't seen any posts seeking advice from their doctor's about their health.
It would seem to me one of the most important considerations is how is your health?
How long do you expect to live based on your parents longevity and other close family members?
Can you really afford to retire at an early age?
Do you actually love your job or career?
Do you wake up some mornings, especially Monday mornings dreading to go to work, because you hate your job..... you hate your brown nosing, and
back stabbing co-workers, and you're ready to go postal on your boss or clients who you really really hate with a passion?
If so, you probably should retire early if you know you could afford to, although your Social Security will be a smaller amount if you retire at 62,
and if you still work part-time, you may have to give back part of your social security monies, however if you wait till your 66, you will get your
full social security check, and you could still work without the fear of having to give the money back to Uncle Sam.
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pauldavidmena
Super Nomad
Posts: 1688
Registered: 5-23-2013
Location: Centerville, MA, USA
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| Quote: Originally posted by JoeJustJoe |
I haven't seen any posts seeking advice from their doctor's about their health.
It would seem to me one of the most important considerations is how is your health?
How long do you expect to live based on your parents longevity and other close family members?
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Very good point. I have had this discussion with my doctor, who is definitely on board with my retiring at age 60. Apart from working in a very
stressful field (IT), heart issues run in my family. Both of my parents are still alive in their mid-80s, but only one of my grandparents lived that
long, with one grandfather dying of a heart attack at age 46. Granted, I live a much healthier life style than he did, but there's no reason to play
chicken with the Grim Reaper.
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fishbuck
Banned
Posts: 5318
Registered: 8-31-2006
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| Quote: Originally posted by pauldavidmena | I'm also 57, and have been working in the IT field for 33 years. I still like what I do, but it's definitely a young man's world, and I'm now playing
the role of the silver-haired veteran who's seen it all. At this point my nest is empty, I'm debt-free and trying to save every penny possible. So I
have the same basic questions you do: when do I hang up my cleats? When do I draw on my social security?
As others have advised, in addition to using an on-line retirement calculator (there are plenty of those) I talked to a financial planner - two of
them, actually (our accountant, and an investment adviser). Both agreed on two things: that I could probably afford to retire at 60, and that I should
delay drawing on my social security until 67.
I've thought of delaying my retirement to 62, but then I ask myself: why? I'm still in good health, but can no longer take that for granted. I had
major back surgery a year ago, and over the weekend I fell down a flight of stairs and banged myself up pretty well. I think my body is trying to tell
me something, and it always gets the deciding vote... |
Wishing you speedy recovery from your stairfall. But yeah we're literally on the same page in regards to when to retire and why.
[Edited on 9-23-2016 by fishbuck]
"A ship in harbor is safe, but that is not what ships are built for." J. A. Shedd.
A clever person solves a problem. A wise person avoids it. – Albert Einstein
"Life's a Beach... and then you Fly!" Fishbuck
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BajaMama
Super Nomad
Posts: 1106
Registered: 10-4-2015
Location: Pleasanton/Punta Chivato
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Mood: Got Baja fever!!
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We are same age (57) and also pondering when to retire. One thing to keep in mind regarding SS and a pension - I believe, although I could be wrong,
that receiving a pension reduces your social security. For some really stupid reason that is incomprehensible to me, the government sees it as
"double dipping." (but hey, didn't you work for it?). Also, depending on how much you draw from your 401K, some of your SS benefits could be taxable
(up to 85%).
I am a retired math teacher - I get over involved with numbers...
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