BajaNomad - Choosing Early Retirement or Maxing SS Benefit?

Choosing Early Retirement or Maxing SS Benefit?

umpqua - 8-5-2015 at 09:57 AM

I apologize if this is in the wrong forum or if it's already been discussed.

I'm interested in knowing the thoughts and opinions of the Nomad folks on social security, retiring and all that stuff. My "full" retirement age is 66 years and 8 months. I would "max out" my ss benefits if I worked until 70. I'm almost 56 so I still have a few years left to go before making a decision one way or another. I plan to continue putting as much back in my 401k as I can.

I've run some rough numbers and the amount that I would receive from ss at age 63 and the amount that I would receive at full retirement at 66/8months would be X. By my calculations I would need to live to my early 80's to reach breakeven from the early retirement decision. My thought is to take the money and run at 63 and try to find an inexpensive place to live....Mexico, Belize, Nicaragua. My thought also is that the US Government would like for me to work as long as I possibly can to insure that by actuary tables that they end up paying me as little as possible in ss benefits.

I figure that if I work till 63 that I would have about $2,200 in ss benefits that could be supplemented with 2-3 hundred a month from the 401k. So MAYBE $2,500 a month. I'm single but it would be "great" to have a lady friend that has aligned ideas so that expenses could be shared (referral's appreciated!).

Sorry for the ramble but I'm seriously interested in knowing others thoughts. I'll bet some folks here are already ahead of me and have made a similar decision? Are you happy with that decision or do you regret cashing out early?

Thank you.

capt. mike - 8-5-2015 at 10:02 AM

As Steve Miller aptly said......take the money and run!!

SFandH - 8-5-2015 at 10:09 AM

Since I'm collecting social security I advise everyone to keep working, paying into the trust fund as long as they can.

Seriously tho, don't make a plan that would preclude you from living comfortably in the United States. You may want to move back.

bajagrouper - 8-5-2015 at 10:32 AM

I went to a pre-retirement seminar put on by my employer and they had a representative from SS there, I had already run the numbers my self but I asked the dude from SS to make sure. He said if I took my benefits at 62 instead of 65 it would take 17 years to break even, I would be 79 years old and maybe drooling by then,LOL......

I also concur with SFandH, everyone else should keep working till ay least 70.......

umpqua - 8-5-2015 at 10:34 AM

Thanks SF. That's good advice.

My "plan" will be to hold onto my house in the US and rent it. That way if I do decide living south isn't for me I'll have a place to return. My thought is that I will live south 8 months out of the year and then return to the US for 4 months in the summer where I will can get a cash paying job from a friend that has a business....that's also in a cheap place to live. That would be an additional under the radar supplement to my income.

umpqua - 8-5-2015 at 10:35 AM

So Baja I assume that you cashed out at 62 and you're living in MX now? No regrets about the decision?

Alm - 8-5-2015 at 10:42 AM

How one can expect an answer tailored specifically to his situation? To me $2,200 sounds like a lot of money. Because I'll be getting much less from the govt when I retire. The plan is still to move to Mexico - if my health will not make me scrap the plan. You can't know what's going to happen in 7 years from now. You can't even know what's going to happen next year. You don't know (and we don't know) what kind of standards you will need after moving there, and this varies A LOT from person to person.

AKgringo - 8-5-2015 at 10:58 AM

I retired at 62, with a modest union pension plus SS. It would not have been possible for me to have much of a life on that much income if I was still carrying a mortgage or rent.

I would like to have put in a couple of more years to fatten my pension amount a bit, and save some cash, but factors other than finances prompted me to retire early.

No regrets here! Sure, a larger monthly stipend would be nice, but I am getting expenses covered plus get to travel on my schedule!

One bit of info that doesn't show up in most actuarial tables is; How long does the retiree live after retiring early vs later? Longevity goes to the early bird, from what I read at the time.

Skipjack Joe - 8-5-2015 at 11:04 AM

I think that a lot depends on the lifestyle you intend to live on after retirement. My biggest surprise is how much is going on gas. If you intend to live a sedentary life and your home is paid off then $2200 is enough. Gas in Baja is just as high as here and things are far apart there. Again, it depends on your lifestyle.

JoeJustJoe - 8-5-2015 at 11:58 AM

I'm in the same boat as you Umpqua, and so I can't give you advice on what I did. For me, it's a wait and see game, and when I get to the age of 62, I will see how I feel, how I still enjoy my job, or not, and I'll look at my retirement savings. That will determine if I retire at age of 62, or go on to 66, and eight months. God forbid, I will wait till I'm 69 or 70, when social security actually provides a good monthly stream of income if you can wait that long.

Now if I were you, I'd ask, how is your health? Do you smoke, are you overweight, did your parents die at an early age? If you answer yes, to two or more questions, I might retire early, and at least enjoy a little bit of retirement early, before kicking the bucket.

Do you like your job, or do you hate your job, and wake up every morning using all of your will, strength and energy to stop you from committing suicide because of your job, or do your think of going postal on your boss or fellow employees because of what they have done to you, or you perceive something about them, or you have paranoid thoughts that they are plotting against you?

So if you hate your job, you might want to retire early. It could also be that you're the boss, and you love tormenting employees under your control, and you enjoy this, and if so, you might want to continue working. ( some people who retire early actually get bored and then die)

You can also retire at age of 62 and still work, but you can't make over $15,000 dollars, because once you go over that limit of $15,000 and change,, one $1 dollar will be deducted from your Social Security benefit for each $2 you earn above the limit. Now if you wait until full retirement at age 66 and 8 months, you can work all you want, and still collect social security.

You might also want to consider the political landscape, if Hillary Clinton, is elected, social security will be safe for another eight years or so, but if a Republican wins the White House, who knows what they will do with social security, but it will probably be safe for older people nearing retirement. So vote democrat, if you don't want to cut your own throat, and keep praying the early retirement option of getting SS benefits is still around.

I never been to Nicaragua, but I hear it's nice, and they don't have the drug problems other Latin American countries have. Mexico is a great place to retire in. Belize, is a nice place to vacation in, especially if you scuba dive, and it's great English is the official language, and most people speak English in the tiny country, but the country is very very poor outside the hotel resorts. It just doesn't seem very appealing outside the tourist areas.

Now for being single in a Latin America country, and wanting to find a lady friend to help with the rent, food and bills. For me it's a "no brainer" forget finding and American woman your own age. Find a nice Latina, in the foreign country you decide to live in, who is perhaps about half your age, and you pay the rent. Trust me, you will be happier, and you should have enough money to live off of based on what you said in your post.

[Edited on 8-5-2015 by JoeJustJoe]

bledito - 8-5-2015 at 12:14 PM

I took an early retirement at 53 and have been working on and off for the past few years. my pension being a 72t because of my age is about half of what I would get at 59 1/2 that is why I still work enough to get by. I still pay off the house here. My plan is to continue work till 59 1/2 use my full pension and my spouses full pension at that time. I can skip working then if I choose, spend winters in Baja and summers in the states. If my 401 survives the pending doom and gloom hawkers I should be just fine supporting both homes one stateside the other in Baja. My father and I often spoke about SS income and when to take it. He always said take it as soon as you can and enjoy it. the payback is like you say years and years to break even. At 79 I won't be doing as much or eating as much or drinking as much as I will be able to do the years between 60 and 75 if I even live that long. so when SS kicks in early for both of us it is a bonus round somewhere around 30,000+ a year between us. that on top of our pensions will be more than i'll need. I can always sell out the stateside home easily enough and have a profit enough to rent someplace stateside if I choose to as an option. Is 2500 a month Say you rent at 1000 a month 300 for utilities leaves you 1200 for food and play. seems like enough. I know folks living on 1700 a month here in the states. paying rent and all the rest. live and spend humbly enjoy the free stuff.

Lee - 8-5-2015 at 12:18 PM

Quote: Originally posted by bajagrouper

I also concur with SFandH, everyone else should keep working till ay least 70.......

I also concur. Better to have too much than too little money in your twilight years. And have enough to live in the US if you change your mind about a 3rd world country.

bajabuddha - 8-5-2015 at 12:36 PM

Max out that SSI and spend your extra top-pay on Medicare, medicines, physical therapy and co-pays, with all your vacation time scheduled between Dr.'s appointments.

Life is short, eat dessert first. :bounce:

Bob53 - 8-5-2015 at 12:53 PM

I'll be 62 this December and have already decided to take my SS benefits at 62. I did the math and if I wait until I'm 66, it would take 11.8 years to break even. I will keep running my business for a year or two if it is profitable but regulate my actual salary through the corporation so that I don't exceed the allowed income.

There is an easy answer!

Howard - 8-5-2015 at 01:16 PM

When will you die?

When you figure out that one the choice is easy! :biggrin:

It all boils down to how long you will be around to collect the benefits and nobody know that answer. I started the first day when I turned 66.

BajaBean - 8-5-2015 at 01:18 PM

Joe
You can marry a nice latina but when you do you will also marry her extended family and they will bleed their "rich gringo" until he is a pale ghost of his former self.

Bob53 - 8-5-2015 at 01:52 PM

My 2 ex-wives and their families have already done that to me.

Sweetwater - 8-5-2015 at 01:52 PM

The real answer doesn't come from a calculator.

How long can you remain active and enjoy yourself? Do you have the resources to do the activities and travel? Watching those who have gone down the path leads me to believe that your abilities and desires will decrease over time. My dad turns 88 this year and is satisfied with a couple trips to a casino or resort now. When he initially retired, trips to Europe and Australia were on his docket. If you want to travel and adventure, you'll need to do it while you're younger, if your focus is staying healthy and utilizing the health care system, you'll need plenty of money and good insurance to do that. Having a partner who has separate resources is a benefit from my view.

Good luck with your choices, there are no guarantees that I've been able to find......

umpqua - 8-5-2015 at 02:09 PM

Thanks for all of the comments.

I don't smoke....well maybe the occasional cigar. Went to the DR. last week for a physical....she said I'm 20lbs overweight. I'm 6'2" so carry it pretty well. I do drink....sometimes a LOT. She said that would carry some health risks later. I gave her the more old drunks line. As far as lifestyle is concerned I think that I can live pretty simple. I drive old cars and don't see a lot of value in keeping up with the Jones's (haven't met them yet). I will NEVER have my house paid off. It's in like year 3 of a 30 year mortgage. Again, I would rent it for the first 3-4 years to see if the living elsewhere would work out for me. I love my job and the people that I work with. My boss says he may go another 7 years so that would work out perfect. My dad died when he was 72 but my mom is still alive (living with me) at 91.

I appreciate the thoughts. It's been on my mind and apparently some of you have given it serious thought as well. Who the hell am I.....the old guy I never thought I'd be.

Alm - 8-5-2015 at 02:51 PM

Umpqua - what Joe said. Wait for another 6 years, until you're 62. Then re-visit this subject. You'll have a better picture of where you are, then.

Many things may change in 6 years. Your health may change. Minor things giving your plenty nuisance - virus, glaucoma, hernia etc etc. You may quit your job or they will go out of business. You may have to move out of your home because mortgage interest will skyrocket. The climate may (and will) change, you won't enjoy living where you are in the US (if you do now), and it will be different in Mexico too - rain where it was all dry before, cold where it was hot, snow in Guadalajara (the fact already), shallow swamp where there was Chapala.
Wait 6 years.

umpqua - 8-5-2015 at 03:04 PM

I'm definitely waiting at least 6 years and maybe 7. I'm not wishing my life away as that time will pass quickly enough. I am mainly interested to know if others on the forum think that I'm generally on track and if they group thinks early (62/63) retirement is doable with my projected retirement income level.

gnukid - 8-5-2015 at 03:34 PM

Such a great topic for discussion for younger folks (under 70) and a great pool for informed support to provide input! What I would give to learn from Dennis!

Likely, one should start with a budget plan and pie chart of major expenditure groups, housing, food, medical, transportation, entertainment.. what other costs? Income both known and projected.

Consider ranking your hobbies and habits for enjoyment, do you like to be busy, in a city, creative, do you enjoy high social or low social solitude.

Are you self-sufficient? Do you have space and capabilities to repair your equipment, maintain yourself by growing a garden and go fishing? or do you prefer eating out at restaurants and drinking fine wine?

Ultimately perhaps write a quality of life mission statement and goals for each 5 years with desired expectations. Review periodically or perhaps with a weekly group of peers?

It could be good to share jobs people do into their 70s, 80s and 90s?

Jack Swords - 8-5-2015 at 04:07 PM

Many have been down that road before. My father died at 55 and just before retirement. Savings and investments didn't help him. I therefore retired at 57 realizing life is finite. I have also seen folks whose spouse died just as they retired, leaving all those retirement plans ruined. Talking to other retirees, it seems their greatest regret is not retiring soon enough. Aging cannot be stopped and brings with it disabilities that are not predicted. We have found that we live cheaper, enjoy life's experiences like beaches and other Baja resources, and don't spend that much money. Life is for living, and that time is limited. To each his own, of course, but you are doing the right thing by asking other folks how retirement works for them.

Hey, Ump...

bajaguy - 8-5-2015 at 04:33 PM

Check your u2u

bajabuddha - 8-5-2015 at 04:45 PM

Quote: Originally posted by Jack Swords

Many have been down that road before. My father died at 55 and just before retirement. Savings and investments didn't help him. I therefore retired at 57 realizing life is finite. I have also seen folks whose spouse died just as they retired, leaving all those retirement plans ruined. Talking to other retirees, it seems their greatest regret is not retiring soon enough. Aging cannot be stopped and brings with it disabilities that are not predicted. We have found that we live cheaper, enjoy life's experiences like beaches and other Baja resources, and don't spend that much money. Life is for living, and that time is limited. To each his own, of course, but you are doing the right thing by asking other folks how retirement works for them.

Amen and amen. My ol' man was going to retire at 60 and popped the cork at 57 (1980).

You can get out early, still figure an extraneous income above AND below board (damnit, I hate cheating, but sometimes you just HAVE TO....) but what you do figure into play, make sure it's enjoyable this time. Necessity is the mother of invention. Be creative. Make life work for you rather than vice-versa, and the key to all is DOWNSIZE. It isn't what you think you need to have, but what you can do without.

[Edited on 8-5-2015 by bajabuddha]

SteveWil - 8-5-2015 at 05:06 PM

It is all about cash flow. I have a friend and his wife that have a 80K income, and does not live as well as I and wife do on 40K, we are both living in the USA. He has house payment car payment, income taxes, $300 in cable and phone bills and the list goes on, we have very few bills. I have another friend that lives in Baja, he and his wife live on a less then we do.
The 3 of us retired before we were 60, and we all hated our jobs. I have 2 other friends that say they will be found dead at there desks, they love their jobs and it is their life.
I believe you should not take SS and work, it just does not make sense to me.
As someone else said, I see people that are turning 70 not willing to do as much or take risks, like they did when younger. The 60's are a good time to do the bucket list. You do have a list, right.
We also lived in mexico for 6 years. It got old and tiring but it is 6 years we would do over in a heart beat.
I have read the whole thread and it had a lot of good stuff to think about.

bledito - 8-5-2015 at 05:21 PM

I also know a bunch of guys who just deliver pizzas make 100 a day cash for 4-5 hours work, now that's 2g extra a month when in the US. if you plan on being in the states some of the time there are ways to make some bucks. And keep your self busy. the time out of states rest and relax. the average Mexican scrap metal guys around here do 40000 a year with a pickup truck. There are options.

bajabuddha - 8-5-2015 at 06:29 PM

..... The *K * I * S* S * technique.......

Alm - 8-5-2015 at 06:33 PM

Quote: Originally posted by umpqua

I'm definitely waiting at least 6 years and maybe 7. I'm not wishing my life away as that time will pass quickly enough. I am mainly interested to know if others on the forum think that I'm generally on track and if they group thinks early (62/63) retirement is doable with my projected retirement income level.

In 6 years from now, when you are 62, you may have a different view of life. Maybe slightly different. Maybe a lot different. And your income and/or assets will not be where you think they should've. It's too early now to talk about it.

Early 62/63 retirement is not a question. If you have enough income at that time, then you can.

$2,200 income "right now" would've been more than enough to me. Total 2.2K monthly to spend, this is plenty, even if I would have to rent. $1,000 a month is a "tourist rent". People living permanently are paying less. There are casitas with running water and electricity from solar panel for under 4K a year.

For you - I don't know if 2.2K would be enough "right now". In 6 years from now - hard to tell. In 20 years from now... don't know. As others pointed out, there are many ways to make it do with what you have. How self-sufficient you are - can you do anything with your hands or do you need somebody to bring you fast-food from restaurant and sweep your house. And so on. I don't even want to touch the subject of drinking - that you mentioned as important. This would skew all the projections.

bledito - 8-5-2015 at 07:51 PM

the problem is inflation. figured at 3% annually it slowly eats away at your fixed income. at 62 you can make it on 2500 a month. at 72 you've lost 30% to inflation. will you still be able to make it? added costs like supplemental health care, prescriptions, medicare suppliments, more frequent trips stateside for health care, or Mexican insurance. rents will increase in time as well as the costs for everything else. things like that need to be considered also.

bkbend - 8-5-2015 at 08:14 PM

It's good that you're thinking about it several years early. Adjust as time goes by. I spent a lot of vacations in Baja and asked all the retirees I saw the same questions you're asking here. Ended up pulling the plug as soon as I could. Wouldn't change it. I split my time north and south and I did find that maintaining two households was a little more expensive than I thought. You need duplicates of everything in both places. I was able to absorb the cost but it was tight for a while. If you think you want to retire at 62 and worried about $$, live now like you are on SS and dump the leftover money into 401K/IRA/extra mortgage payment -- something that will benefit you down the road.

TMW - 8-5-2015 at 08:25 PM

Working till 70 will get you more money from SS but what are your finances. I retired at 65 and my wife went on SS disability at 60 2ywo years before I retired. I have two pensions plus my 401K turned into an IRA after retirement.

The best thing is to payoff all credit cards and if possible your house before retirement so you don't have a lot of payments.

For me everyday is like Saturday. I can live well off what I get from SS and my pensions and my wife's SS. Actually our income is very close to what I made before retirement so retiring was no big deal.

But each situation is different. Health will become a major problem as you age. You will not be able to do what you were doing in younger times. So keep that in mind. I thought we would travel the world but my wife's health does not permit that. I do many Baja trips and go out to the Mojave desert too so all is well.

55steve - 8-5-2015 at 08:30 PM

I took mine 6 months after my 62nd b-day. I figured that my destructive lifestyle of my youth would lead to an early death. I am one of the lucky ones that worked at a place that gave me a decent pension so along with the SS I do OK.

Ateo - 8-5-2015 at 08:40 PM

Quote: Originally posted by JoeJustJoe

I'm in the same boat as you Umpqua, and so I can't give you advice on what I did. For me, it's a wait and see game, and when I get to the age of 62, I will see how I feel, how I still enjoy my job, or not, and I'll look at my retirement savings. That will determine if I retire at age of 62, or go on to 66, and eight months. God forbid, I will wait till I'm 69 or 70, when social security actually provides a good monthly stream of income if you can wait that long.

Now if I were you, I'd ask, how is your health? Do you smoke, are you overweight, did your parents die at an early age? If you answer yes, to two or more questions, I might retire early, and at least enjoy a little bit of retirement early, before kicking the bucket.

Do you like your job, or do you hate your job, and wake up every morning using all of your will, strength and energy to stop you from committing suicide because of your job, or do your think of going postal on your boss or fellow employees because of what they have done to you, or you perceive something about them, or you have paranoid thoughts that they are plotting against you?

So if you hate your job, you might want to retire early. It could also be that you're the boss, and you love tormenting employees under your control, and you enjoy this, and if so, you might want to continue working. ( some people who retire early actually get bored and then die)

You can also retire at age of 62 and still work, but you can't make over $15,000 dollars, because once you go over that limit of $15,000 and change,, one $1 dollar will be deducted from your Social Security benefit for each $2 you earn above the limit. Now if you wait until full retirement at age 66 and 8 months, you can work all you want, and still collect social security.

You might also want to consider the political landscape, if Hillary Clinton, is elected, social security will be safe for another eight years or so, but if a Republican wins the White House, who knows what they will do with social security, but it will probably be safe for older people nearing retirement. So vote democrat, if you don't want to cut your own throat, and keep praying the early retirement option of getting SS benefits is still around.

I never been to Nicaragua, but I hear it's nice, and they don't have the drug problems other Latin American countries have. Mexico is a great place to retire in. Belize, is a nice place to vacation in, especially if you scuba dive, and it's great English is the official language, and most people speak English in the tiny country, but the country is very very poor outside the hotel resorts. It just doesn't seem very appealing outside the tourist areas.

Now for being single in a Latin America country, and wanting to find a lady friend to help with the rent, food and bills. For me it's a "no brainer" forget finding and American woman your own age. Find a nice Latina, in the foreign country you decide to live in, who is perhaps about half your age, and you pay the rent. Trust me, you will be happier, and you should have enough money to live off of based on what you said in your post.

[Edited on 8-5-2015 by JoeJustJoe]

You should be a comedian. That had me laughing like crazy. Especially this part:

Now if I were you, I'd ask, how is your health? Do you smoke, are you overweight, did your parents die at an early age? If you answer yes, to two or more questions, I might retire early, and at least enjoy a little bit of retirement early, before kicking the bucket.

Do you like your job, or do you hate your job, and wake up every morning using all of your will, strength and energy to stop you from committing suicide because of your job, or do your think of going postal on your boss or fellow employees because of what they have done to you, or you perceive something about them, or you have paranoid thoughts that they are plotting against you?

umpqua - 8-6-2015 at 10:18 AM

Thanks for all of the responses but on and offline. Really appreciate the constructive dialogue.

The first order of business is to speak with a financial planner to make sure the my expected retirement income will support my dream. My sense is that I will be short but I still have a few short years to make adjustment.

philodog - 8-6-2015 at 10:23 AM

If you would rather not work anymore it all comes down to how much is a year of freedom worth to you. Priceless in my opinion.

umpqua - 8-6-2015 at 10:36 AM

Agreed. Any of us could be hit by a Honey Bucket truck at any time.

AlanDow - 8-6-2015 at 11:15 AM

Great Discussion! One significant factor I haven’t seen discussed yet that is similar to the unknowable questions that have been raised of “When will you die?” & “What will your health be in retirement?” is the really big question “What will the value / purchasing power of the dollar be during the term of my retirement”?
I think many of us in the US have been lulled into not thinking about that question as a result of the sustained strength of the US dollar over much of our lives (some of us do remember the runaway inflation of the 70s). And given that the US borrows or prints 40 cents of every dollar we spend, it is clear to me that even though I do not understand how the dollar has remained so strong up until now, I do believe strongly that the US dollar strength is unsustainable in the long run. Maybe the current strength is just “relative” strength, as in the US dollar is only strong relative to all the other currencies that are being debased even faster than the dollar (like being the best looking horse in the slaughter house).
My concern is that I have been contributing into the SS system with dollars that have a lot of relative buying power, and I am afraid that if I wait too long that when I get those same dollars back in SS retirement benefit payments, they may not buy very much (I am not so concerned about the 3% inflation that Beldito mentioned, versus the double digit or runaway inflation that has eventually been suffered by every other country that has tried to borrow and or print it’s way to prosperity, as the US is attempting to do currently). So since I believe that in the long run the dollar is destine to lose significant value, I want to start getting some of those dollars back sooner than later so I plan to take my SS benefit at 62.
As others have wisely stated, you also need to be able to live on what you will get if you start drawing your SS early at 62, and if you can do that then I whole heartedly agree with taking your SS benefit early.
I am 60 and I actually have already retired from full-time work and have been able to build my place in Bahia Asuncion in between working short-term temp jobs. My wife (whose age will remain a mystery) will retire from full-time work this year, so we are looking forward to spending much of our winters in Baja starting this year.

motoged - 8-6-2015 at 11:19 AM

As one of the "younger folks" (64 this month), I am planning on quitting my work this next spring. I don't have a pension or a wife with one, so am needing to rely on meager savings and some gov't OAP/SS income.

As such, I have dreamed for years of spending a great amount of my "retired time" in Baja.

It seems that some folks who are a "couple" (married or just "shacked up" as my dad would say) are able to manage well on a few thousand $$$ a month.

So.....maybe there is an attractive, patient, energetic, healthy single woman with a great sense of humour and with no financial worries who is presently living in her own place in Baja (somewhere from BoLA south) and who wants to share her
"excelente ubicación" with a creative, adventurous, funny, loving and caring guy.

While I enjoy fishing, I don't have a boat at this present time. I do enjoy motorcycling and desert adventuring, am a great cook, enjoy gardening, love cats more than dogs (but enjoy a dog's company), and am trustworthy and responsible.

If anyone knows of a potential "retirement partner", please U2U me or post a reply here.

Oh.....please send a picture of your casita and boat.

:biggrin:

[Edited on 8-6-2015 by motoged]

MulegeAL - 8-6-2015 at 11:32 AM

Ump,
Find a book called "Your Money or Your Life" by Joe Dominguez.

What you're trying to balance out is choosing between "to be" and "to have." The info in that book lead me to change how I value my time/life energy in exchange for $$ for the better.

MulegeAL - 8-6-2015 at 11:40 AM

Ump,
Find a book called "Your Money or Your Life" by Joe Dominguez.

What you're trying to balance out is choosing between "to be" and "to have." The info in that book lead me to change how I value my time/life energy in exchange for $$ for the better.

Bob53 - 8-6-2015 at 01:15 PM

A boat was docked in a tiny Mexican fishing village.

A tourist complimented the local fishermen on the quality of their fish and... asked how long it took to catch them.

"Not very long" they answered in unison.

"Why didn't you stay out longer and catch more?"

The fishermen explained that their small catches were sufficient to meet their needs and those of their families.

"But what do you do with the rest of your time?"

"We sleep late, fish a little, play with our children, and take siestas with our wives. In the evenings, we go into the village to see our friends, have a few drinks, play the guitar, and sing a few songs.
We have a full life."

The tourist interrupted, "I have an MBA from Harvard and I can help you! You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat."

"And after that?"

"With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers.
Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City!!! From there you can direct your huge new enterprise."

"How long would that take?"

"Twenty, perhaps twenty-five years." replied the tourist.

"And after that?"

"Afterwards? Well my friend, that's when it gets really interesting," answered the tourist, laughing. "When your business gets really big, you can start buying and selling stocks and make millions!"

"Millions? Really? And after that?" asked the fishermen.

"After that you'll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends."

"With all due respect sir, but that's exactly what we are doing now. So what's the point wasting twenty-five years?" asked the Mexicans.

And the moral of this story is:

Know where you're going in life, you may already be there! Many times in life, money is not everything.

“Live your life before life becomes lifeless”

pauldavidmena - 8-6-2015 at 02:04 PM

My wife and I have sat down with 2 financial planners whom we trust and have decided that I will target a retirement age of 60 (I'll be 56 in a few days). Whether to take SS at 62 or later is still undecided, as my wife plans to continue working. I'm in IT, which is truly a young man's profession, so to me it doesn't make sense to remain a dinosaur among young pups for any longer than necessary.

I'm debt-free, am currently max-ing out my 401K and socking away additional cash in my "Sunny Day fund", and as long as that remains the same for the next 4 years, we should be in good shape.

Naturally, the next 4 years could hold plenty of surprises. Case in point: I'm getting major surgery (back) next month, but apart from that we're both in good health and would like to enjoy our golden years sooner than later. My parents are both alive and well in their 80s, but 3 of 4 grandparents died young (60s or younger), so I want to maximize the good life while it's still there for the taking.

umpqua - 8-6-2015 at 03:21 PM

Hey Moto, you're jock'n my style. You're second in line for the "retirement partner.'

Quote: Originally posted by motoged

As one of the "younger folks" (64 this month), I am planning on quitting my work this next spring. I don't have a pension or a wife with one, so am needing to rely on meager savings and some gov't OAP/SS income.

As such, I have dreamed for years of spending a great amount of my "retired time" in Baja.

It seems that some folks who are a "couple" (married or just "shacked up" as my dad would say) are able to manage well on a few thousand $$$ a month.

So.....maybe there is an attractive, patient, energetic, healthy single woman with a great sense of humour and with no financial worries who is presently living in her own place in Baja (somewhere from BoLA south) and who wants to share her
"excelente ubicación" with a creative, adventurous, funny, loving and caring guy.

While I enjoy fishing, I don't have a boat at this present time. I do enjoy motorcycling and desert adventuring, am a great cook, enjoy gardening, love cats more than dogs (but enjoy a dog's company), and am trustworthy and responsible.

If anyone knows of a potential "retirement partner", please U2U me or post a reply here.

Oh.....please send a picture of your casita and boat.

:biggrin:

[Edited on 8-6-2015 by motoged]

AKgringo - 8-6-2015 at 03:32 PM

Do we need a 'Personals' forum on this web site, or is 'Off Topic' as close as we need to get?

motoged - 8-6-2015 at 03:46 PM

Quote: Originally posted by AKgringo

Do we need a 'Personals' forum on this web site, or is 'Off Topic' as close as we need to get?

AK,
Nope....just need a sense of ha ha :biggrin:

AKgringo - 8-6-2015 at 04:08 PM

Yet another of my attempts at humor fell flat!

I have to remember to use the smilies more... :tumble:

Bob53 - 8-6-2015 at 04:12 PM

I got a giggle out of it.

umpqua - 8-6-2015 at 04:51 PM

As a suggested by one of the Nomads, I've scheduled a meeting with a financial planner. I have the info gathering call tomorrow.

Thanks for inspiring me everyone. A beer at aqua verde would taste mighty fine about right now.

umpqua - 8-6-2015 at 04:53 PM

Mulege I'll pick up the book.

I was in Mulege for NYE 3 years ago. Had a great time. I like that town....

motoged - 8-6-2015 at 04:56 PM

Quote: Originally posted by AKgringo

Yet another of my attempts at humor fell flat!

I have to remember to use the smilies more... :tumble:

AK,
I knew you were funnin' :saint:

CortezBlue - 8-6-2015 at 08:35 PM

I didn't look at all responses, but here is my 2 cents

I refer to my money as buckets and I have several

Real Estate
Precious Metals
cash
stocks
401k
general assets
pensions

So if you put together a spreadsheet and calculate if you take SS at 62.5, 65, 67, 70 etc.

now look for your crossover points where you will make the same money over a period of time.

Now, you have to figure out how much you have in your 401K and you MUST start depleting your funds at 70.5.

You also have to figure tax rates today vs the fact they will become higher down the road. You will get an 8% return on your SS

Take all that data and build several models to figure out the pros and cons. Also, how much money do you need?

There is also a method that the highest bread winner can hold off on taking SS and have the other spouse take theirs and the other person can get 1/2 of the spouses monthly pay.

Here is a link that explains it

http://www.usatoday.com/story/money/personalfinance/2013/12/...

Baja Bucko - 8-6-2015 at 09:34 PM

That meteor in the far distant sky can come crashing on your head when you least expect it. I know from personal experience. You can plan and stay fit and healthy and dream about what you want to do at 70 but will your body be UP to it???? I think it is nuts to plan retirement for when you are 65 or 70...life is short. If you can get out now, go for it. chit happens and believe me, it is when you least expect it no matter how you plan things. Life is for the living.....do not wait to do your passions.....tie up money loose ends and live what you love now....just my 2 pesos worth.

JoeJustJoe - 8-7-2015 at 12:10 AM

Quote: Originally posted by umpqua

As a suggested by one of the Nomads, I've scheduled a meeting with a financial planner. I have the info gathering call tomorrow.

Thanks for inspiring me everyone. A beer at aqua verde would taste mighty fine about right now.

It's always nice to get other opinions, and some financial planners do great jobs. But a financial planner, has goals too, and that's you roll over your 401K into an IRA, and if they're really crazy, they will have you roll it over into an "annuity" if they think you're risk aversion, and because the fees are better for them for insurance products.

So most likely a financial planner will be pushing that you retire early, claiming you could make up the short fall of retiring early with their professional advice. Financial planners, financial consultants, or whatever they call themselves these days, will always be sniffing for all your assets, under the guise they want to look at the total picture, but they really want all your assets, so they could earn a bigger commission or fee.

I used to think most people could do their own investing, but I no longer believe that, because most people don't know about simple diversification, or they're overly conservative or overly aggressive.

Here is a question I would ask a financial planner, "if the S&P 500 index fund has outperformed over 90% of all domestic equity mutual funds for years, and I could also buy some conservative bond fund to spread the risk, what advantage would I have investing my retirement monies with you? They should be able to answer the question.

[Edited on 8-7-2015 by JoeJustJoe]

CortezBlue - 8-7-2015 at 07:14 AM

Most financial advisers are simply sales folks selling financial products. You should look for a fiduciary adviser that gets paid from performance only.

Sweetwater - 8-7-2015 at 08:36 AM

When it comes to predicting longevity, just remember that Keith Richards is still alive.

SFandH - 8-7-2015 at 09:28 AM

Quote: Originally posted by bledito

the problem is inflation.

That can/will be a huge problem when you're on a fixed income, especially considering all the money that was printed in the past 7 years or so.

One of the first adjustments social security could get hit with to keep it solvent is a reduction in the COLA, which makes inflation even more onerous for retirees.

I'm betting that high inflation is around the corner and am investing with that in mind.

stiladam - 8-7-2015 at 09:55 AM

ONLY use a fee only financial planner from NAPFA. Fiduciary duty and non-commission based is crucial.

More here:

http://www.forbes.com/sites/davidmarotta/2012/06/11/fee-only...

I had a close relative get eaten alive by full commission "advisors"

bajalearner - 8-7-2015 at 10:10 AM

Quote: Originally posted by Jack Swords

Great information. I like the part that recommends living cheaper.

Many years ago I met a retired career social security employee. His advice to this question was to take the money when you want to have the income, use the money at that time and don't let the numbers dictate your life. Of course we all accept the advice that we like and I liked his advice.

bajalearner - 8-7-2015 at 10:26 AM

Quote: Originally posted by Bob53

And the moral of this story is:

Know where you're going in life, you may already be there!

I like this statement. Bob, can I use this? If yes, I'll give you credit for it. If no, I'll use it anyway and not give you credit for it. :bounce:

Great story too. Thx

BajaGringo - 8-7-2015 at 10:47 AM

Consider another option that some of us have chosen...

Check out early from NOB life
Take time to decide where to live in Baja
Invest in a local business that appeals to you
Work WHERE you want to be now, don't wait for retirement

Working down here feels like being on vacation 24/7 and I have never looked back. We recently signed a collaboration agreement which should help move our operations forward...

http://www.sandiegouniontribune.com/news/2015/jul/28/keyhole...

JoeJustJoe - 8-7-2015 at 11:22 AM

Quote: Originally posted by stiladam

ONLY use a fee only financial planner from NAPFA. Fiduciary duty and non-commission based is crucial.

More here:

http://www.forbes.com/sites/davidmarotta/2012/06/11/fee-only...

I had a close relative get eaten alive by full commission "advisors"

A fee only financial planner is going to take your money too, and they are going to take a lot of it. Sadly, most won't earn the money, and would be hard pressed to beat a blind folded monkey throwing darts at companies on a dart board, and then having others invest in the stocks the monkey picked by throwing darts.

Why the monkey does as good as professionals is explained by the " Random Walk Theory," and other theories about the market. The monkeys are also often a lot smarter than stock brokers, financial planners, and other various names they call themselves these days.

Full commissioned stock brokers, are dinosaurs, there are not too many of them around anymore, but the ones that are still around, do OK.

Gone are the days that you call up your stock broker, and tell him to buy you 100 shares of Apple stock, or ask him to find a good stock for you. Who wants to pay a $100 dollar commission, when you go to some place like a discount broker like E-Trade and buy that stock for less than $10 dollars.

For awhile there stock brokers, financial advisers, instead pushed fully loaded mutual funds which would come with about a 5% percent, and a small maintenance fee. This was great for awhile, because the broker would sell you a mutual fund, that was professional managed, and he collected his commission and spent the afternoon playing golf.

The public wised up on mutual funds too, and figured out, they could out and buy a "no load" mutual fund on their own, that did as well or better than the "loaded" mutual fund. A "no load" mutual fund was professional managed, and the investor only had to worry about small management and others fees that are usually under 1%.

So now stock brokers are financial advisers, financial consultants, and there are also financial planners, and they all pretty much to do the same thing. They gather assets, and they want you to turn over all your retirement savings to them, so they could invest it for you in things like hedge funds, if you're rich, or financial vehicles that look like hedge funds, but are really pretty much the same as mutual funds. These people also love insurance products.

The financial planner hopes that you have at least $1 million dollars to invest with him, because of average his fee is going to be about 2%, and that's a lot of money, and since the account is professionally managed, the financial planner is now going to go play golf, and go to a strip joint. When he wakes up the next morning he will spend a few hours trying to reel in other fat cats.

Here is the problem besides the high fees. A typical successful financial planner, doesn't want clients with the typical 401K retirement of about $80,000 dollars when they retire. I hear some advisers over at "Merrill Lynch" don't even want to talk with you unless you have about $1 million dollars.

Most financial consultants really don't want to bother with an account of less than $100,000 dollars, because those kind of clients are often high maintenance, and will be calling to take their money out because of some financial emergency or they will be calling when their account takes a hit. They don't want you to interfere with their golf game, and strip club excursion.

So the middle class with a moderate amount of retirement savings, might have trouble finding good expert advice on financial matters, but the good news is that if you do your homework, you could do as well or even better than the professionals who are always hard pressed to beat an index like the S& P 500, and don't forget a monkey throwing darts, and picking stocks that way, also beats most professionals.

AKgringo - 8-7-2015 at 11:49 AM

Quote: Originally posted by bajalearner

Quote: Originally posted by Bob53

And the moral of this story is:

Know where you're going in life, you may already be there!

I like this statement. Bob, can I use this? If yes, I'll give you credit for it. If no, I'll use it anyway and not give you credit for it. :bounce:

Great story too. Thx

Originality is the ability to conceal your source.....and I'm not telling where I read that!

Lee - 8-7-2015 at 01:48 PM

I have a feeling some here do not know what a financial advisor/planner is. If your ''advisor'' is also a stock broker, that's the wrong advisor. My advisor charges by the hour. No sales, pitches, investment/money management, nothing. He's licensed in Colorado, MBA UCLA, BA in math, Berkeley. Totally up front, high integrity. Charges about $200/hour. This is what he offers:

''I offer a broad range of financial planning and investment advisory services, including:

Current portfolio review and analysis
Investment recommendations for taxable and retirement accounts
Asset allocation recommendations, including alternative investments
Cash flow and budget analysis
Regular review of investment statements
Investment strategy for inheritance or other large sums
Review and selection of investment managers
Retirement planning, including retirement readiness and distribution strategy
Social Security optimization strategies
College education planning
Home purchase/sale and mortgage financing analysis
Review of real estate and other private investment opportunities
Life insurance and annuities review
Tax planning strategy for investments
Maximizing company stock options and benefits

Most services are offered on an hourly basis – please contact me for a full discussion of my fees, estimated time involved in rendering services, and other questions.''

SFandH - 8-7-2015 at 01:58 PM

I think one thing is true when it comes to money.

The only thing harder than making money is keeping it.

[Edited on 8-7-2015 by SFandH]

JoeJustJoe - 8-7-2015 at 03:15 PM

Now if I was shopping for a financial planner, I'd look for one that has a Certified Financial Planner( CFP) designation, and now it's pretty much becoming a standard thing to have. If the financial planner, has the CFP, you know they passed a grueling 2 day national exam.

The stock broker, financial consultant test is the series 7, six hour test, which also isn't easy and takes a few months to study for and pass.

Of course, even with a CFP, they will have trouble out performing an index fund, or the monkey, although they will know something about insurance, estate planning, and taxes, although with the last two, you might want to consider an CPA, or estate planning attorney, than a jack-of-all trades CFP financial planner.

The only designation that really impresses me is the " Chartered Financial Analyst(CFA) these people are like the navy seals of investment world, they are also the money managers of the large mutual funds and hedge funds, but they usually don't give retail investment advice,, but again 90 percent of these mutual fund managers with CFA's, they can't beat the S&P 500 index either, although a few of them do, and some of their hedge or mutual funds are less risky than the S&P 500 index, which is still a stock index, and weighted average, and so therefore it carries risk.

Of course this is "Baja Nomad' where there are a lot of ex-pat on fixed income, and for those people they should learn to read and understand "Morningstar" that rates and reviews mutual funds, using a star system in different mutual fund categories.

A dog, gets a one star, and a great mutual fund gets a 5 star ranking based on their performance, risks and rewards and other criteria. Of course picking a 5 star ranked mutual fund doesn't guarantee success, but for sure I'd keep away from the dogs with one or two stars.

"http://www.morningstar.com/

Alm - 8-7-2015 at 05:17 PM

Quote: Originally posted by JoeJustJoe

... the good news is that if you do your homework, you could do as well or even better than the professionals who are always hard pressed to beat an index like the S& P 500

Definitely wouldn't waste time on financial planner. With 7 years investment horizon I am not even sure that index funds like S&P will work (much) better than some 2.5% savings account. Another 6-years long recession could be just around the corner.

tripledigitken - 8-7-2015 at 07:27 PM

Quote: Originally posted by Alm

[rquote=994736&tid=79794're. uthor=JoeJustJoe]... the good news is that if you do your homework, you could do as well or even better than the professionals who are always hard pressed to beat an index like the S& P 500 [/rquote]
Definitely wouldn't waste time on financial planner. With 7 years investment horizon I am not even sure that index funds like S&P will work (much) better than some 2.5% savings account. Another 6-years long recession could be just around the corner.

I'm going to assume your 7 yr time horizon is until you retire. Your need to have your nest egg grow doesn't stop there. Limiting your upside return to 2 1/2 % may not be the smartest plan. Just saying. If you expect to live at least 10-20 years most would advise at least 40% in equities. That all depends on your ability to sleep with the financial decisions you make. By the way, whose offering 2 1/2% savings accounts?

Kgryfon - 8-8-2015 at 09:25 AM

Umpqua, I'm in almost the exact same situation as you, except I'm a woman. Planning on taking the money and running in about 3 years, living off my pension/401k until the first opportunity to collect my SS. Watched my mom sink into Alzheimer's and my dad from heart issues. Both dead now. Going to do what I want while I still can. Maybe we can be roommates and split the costs

I like to fish and have my own boat, but I'll be selling it when I retire and buying a new one wherever I land. I say go for it!

Alm - 8-8-2015 at 12:27 PM

Quote: Originally posted by tripledigitken

By the way, whose offering 2 1/2% savings accounts?

Term Deposits.
I agree, something should be kept in equities. Not everybody can sleep well with those highs and lows though. "Safe" indices like S&P don't look too well either. From 1998-1999 to 2013-2014 it's a roller coaster with deep lows and highs, and total growth for the period is flat. Investing not in the very low and not in the high - you can't time the market - one would make about 2.0% annual in those 15 years. With potential to win maybe 50% over that period. Or - lose 50%.

10 years isn't long enough these days. 20 years - maybe, but this would bring the guy into his late 70s.

Picking up a sure winner in stocks - good luck with that

[Edited on 8-8-2015 by Alm]

JoeJustJoe - 8-8-2015 at 01:31 PM

Quote: Originally posted by Alm

Quote: Originally posted by JoeJustJoe

... the good news is that if you do your homework, you could do as well or even better than the professionals who are always hard pressed to beat an index like the S& P 500

The only thing possibly wrong about this type of thinking, is that for at least the last six year now, we been hearing the stock market is not only going to crash, but they said, the "sky was going to fall too! They said the FED, propped up the stock market with the stimulus and low interest rates near zero, and so they said, it was just a matter of time the stock market was going to crash again, and there were going to be things like mass unemployment, hyperinflation, and perhaps even locusts like were in the biblical times!

Now I'm not going to say these people were wrong, because clearly the dark clouds seemed to be on the horizon, but what they predicted didn't materialized, not yet anyway. Maybe that financial tsunami, will finally hit around the same time as we get a new President in 2016, and we will put all the blame on that new President.

So the problem was that if you listened to these warnings the last six years and sat on the sidelines, and put all your savings under your mattress. You would have lost money, because you missed a great bull run in some of these last years.

This is why some financial planners and financial consultants are great. They can hold you hand, and tell you that they will be there for your watching the storm clouds, and they will help you navigate the choppy waters, but when that financial tsunami, I doubt they will be able to help, and just like 2007, most people suffered great losses on paper anyway.

So putting all your money in a bank CD, is risky too, because if the market doesn't crash, you'll miss out, and you also run the risk of outliving your money in you stick all your savings in a bank CD that pays about a 1% interest rate if you're lucky.

And I do agree with your statement here: "something should be kept in equities," but again that would depend on risk tolerance and other factors.

[Edited on 8-8-2015 by JoeJustJoe]

Alm - 8-8-2015 at 02:33 PM

Joe, - it didn't crash completely. Still if you look at the S&P in the period that I mentioned - lasting 14-15 years, not 6 - there was a couple of 50% drops. And the end result was flat for the period. So - it didn't crush in 15 years. And it did crush by 50% more than once, in that period. Now it's up again for about a year. Nobody knows for how long.

Btw, some credit unions are paying 3% in CD.

ehall - 8-8-2015 at 04:13 PM

This is a great thread. I turn 48 next week and only plan on working another 9 years. Alot of interesting things to think about.

umpqua - 8-10-2015 at 10:14 AM

Hey, I'm back. I went to a Wilco show in Bend over the weekend and was offline for a while. I spoke to a cop in Bend and he told me "there's a lot of beer in this town so be careful." Don't know why I thought that was so funny but it was and he damned sure was right....there IS a lot of beer in that town.

I had a 40 minute convo with a financial planner last week. It didn't feel like he was trying to sell me anything. I gave him some basic information and he ran some numbers and gave me a "rough" estimate of what my finances would be like in another 7 years. He seems to think that based upon historical market performance, my past and projected earnings, etc that I will have approx. $40K annual in retirement income if I cash out at 63. I'm going to take another run at it with him when I have next quarters statements in hand to get an even closer look.

This has been a great discussion. It's really sparked some thought for me and it appears that it is relevant with others as well.

Lee - 8-10-2015 at 11:15 AM

Quote: Originally posted by umpqua

I'm going to take another run at it with him when I have next quarters statements in hand to get an even closer look.

This has been a great discussion. It's really sparked some thought for me and it appears that it is relevant with others as well.

I get 2nd hand reports from my wife who's met with our financial advisor. Think I recall part of that process is to look at monthly bills and that determines how much it'll cost to live.

When someone comments that they're looking to live cheap in Baja inevitably someone comments that Baja isn't cheap. Guess I'd look at comparisons -- cheap in comparison to what? LA? Aspen?

I fish every morning between Punta Lobos and Migrino and always think if I needed to live on fish alone, I could survive on minimal income. Oh, and a friend has a farm where I buy veggies weekly which comes to about $10.

$40k in Baja, I think, will go a long way.

JoeJustJoe - 8-10-2015 at 12:41 PM

Quote: Originally posted by Alm

Joe, - it didn't crash completely. Still if you look at the S&P in the period that I mentioned - lasting 14-15 years, not 6 - there was a couple of 50% drops. And the end result was flat for the period. So - it didn't crush in 15 years. And it did crush by 50% more than once, in that period. Now it's up again for about a year. Nobody knows for how long.

Btw, some credit unions are paying 3% in CD.

I never said the S&P Index is safe, the only thing I said, is the S&P Index, beats about 90 percent of all Mutual funds, out there, and in the same class.

But that statistic is like the homicides killings in Mexico, where some say 80% to 90% of all homicides are drug related. The numbers seem to vary on the S&P 500, depending on who is crunching the numbers. So lets just say the S&P 500 beats most mutual funds, or other retirement accounts out there.

Even in a bear market, it's rare for a strong mutual fund to lose half it's value, but the S&P 500, and just about all other stock funds lost their shirt in 2008. One thing that makes the S&P 500 perform so well, and fall during times of a bear market, is it's a weighted average of stock. So not all 500 companies that make up the S&P index are equal. The top 10 top stocks in the S &P 500 really drive the index, and many of those companies are tech stocks. An Index fund is cheap too, with low management fees.

Since the S&P 500 is an index, it's also used to compared to other mutual funds, on both the performance and risks. They use something called the "Beta" which is, " A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole."

So when a company has a beta over 1.00, the mutual fund is considered more risky, and also has more of a upside potential, and those with a beta below 1.00, fluctuate less, supposedly pose less risk, and lower returns.

So what a financial consultant might do, because older investors are Conservative, is put you into a Growth& Income, fund, that has companies that been around for a long time, and also pay a dividend which is income.

Growth & Income funds are supposed to help you weather a financial storm, but their performance usually lags the S&P 500, and other Growth stock mutual funds, but in a real bad bear market, these so-called safer investments fall too just like everything else, with the exception is a few utility stocks, and commodity stocks like gold funds.

So this is why I personally, just stay in the S&P 500, and other sector mutual funds, although I have about 25 percent in bonds, which really should be higher, but I don't have much risk aversion.

3 percent CD in a credit union, not bad! I see most banks offering 1%, so do you know if the CD's are FDIC insured, and what's the deposit term?

Sweetwater - 8-10-2015 at 05:46 PM

Just catching up here after a weekend ride....my first overnighter this year.....and just learned of another of the high school gang who passed this last week at the ripe old age of 60. Apparently he had some prostate ca removed and collapsed at home a few days later. Nobody around to rescue him.

So, in addition to not being able to predict longevity, I just want to comment on the Morningstar mutual fund ratings....they're not at all predictive of future earnings. Specifically, I'll point to the Pimco funds which have a 5 star rating on their growth fund but it got saddled with some of the leftover bonds (big scandal to read about-Bill Gross). The fund still carries it's 5 star rating but has a horrible YTD performance.

And Keith Richards carries on......

BTW, I pulled retirement a couple months shy of my 55th B'day....30 years with one employer is more than enough, both for me and them.....good thing I stuck to the retirement program that was offered in 1980.....it got morphed twice and if I had ever cashed out (to buy a car like some guys), I would not have made it out.....