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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
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Retire or not Retire
Ok, all of you Nomads who have retired, I have a question.
First, I am 56 and mainly interested in folks who have retired at that age and not at 65 or so.
Questions?
Did you retire or just tire of working?
How much did you have in your 401K or 403B?
Did you feel like you retired to soon?
Did you develop a drinking problem or just continue the drinking problem you had while working!!
So here is the deal
My wife is retired and has a nice pension from a school district.
We still owe about 300K on our house, but have a 2.8% ARM that is good until about 2017.
I own a home in San Felipe, but do not plan on moving to Mexico full time.
U2U me with any advice
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micah202
Super Nomad
Posts: 1615
Registered: 1-19-2011
Location: vancouver,BC
Member Is Offline
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.......it's always good to get a new set of tires whenever you can!
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msawin
Nomad
Posts: 373
Registered: 8-29-2003
Location: Grass Valley,Ca / Tripui
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Hey that's me too. I am 56. wait that's Sunday. I have a day. But what about me and my house payment and Baja. My wife worked with me for 24 years in
our business, but no union retirement for her. ??. How much do we need for Mexico a month to survive? How much is enough?
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bajagrouper
Senior Nomad
Posts: 964
Registered: 8-28-2003
Location: Rincon de Guayabitos, Nayarit, Mexico
Member Is Offline
Mood: happy and retired
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It is probably better info if you stated the equity in your home and not how much you owe.
I hear the whales song
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Bajafun777
Super Nomad
Posts: 1103
Registered: 9-13-2006
Location: Rosarito & California
Member Is Offline
Mood: Enjoying Life with Wife In Mexico, Easy on The Easy
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Look you will always be chasing dollars if you think about what you think you need to retire. Sit down and figure out just how much you save by not
working like not having to buy such things as work clothes, meals from home, transportation costs, insurance for car as mileage counts, less taxes due
to lesser monies coming in during retirement, not buying all of the other employees charity event tickets or other kid function tickets etc. You will
be amazed how much this adds up to during the month. Next just cut down on the buying of things that you buy on impulse but don't need, you all know
about things that go in closets or drawers never to be seen again once bought.
I retired at 57 and just told my wife we will get by and with smarter shopping for things and thinking out trips for best deals we do just fine. I
started going to too many friends funerals and decided it was time to enjoy life, especially since my first working experience was picking cotton with
a gunny sack at age 10 on the farm. We don't regret it and I had a close call at age 59 so glad I had done some of my bucket list and working on the
rest of the list as I type this, LOL. Don't chase retirement dreams but let retirement dreams chase you, enjoy yourselves because you just never know
when the time clock is set to run out on you. Take Care & Travel Safe----"No Hurry, No Worry, Just FUN" bajafun777
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by bajagrouper
It is probably better info if you stated the equity in your home and not how much you owe. |
Good point
market value $800k
mortgage $300k
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by msawin
Hey that's me too. I am 56. wait that's Sunday. I have a day. But what about me and my house payment and Baja. My wife worked with me for 24 years in
our business, but no union retirement for her. ??. How much do we need for Mexico a month to survive? How much is enough? |
Trust me, no union pension here. AZ is a right to work state, we are not union fans
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by Bajafun777
Look you will always be chasing dollars if you think about what you think you need to retire. Sit down and figure out just how much you save by not
working like not having to buy such things as work clothes, meals from home, transportation costs, insurance for car as mileage counts, less taxes due
to lesser monies coming in during retirement, not buying all of the other employees charity event tickets or other kid function tickets etc. You will
be amazed how much this adds up to during the month. Next just cut down on the buying of things that you buy on impulse but don't need, you all know
about things that go in closets or drawers never to be seen again once bought.
I retired at 57 and just told my wife we will get by and with smarter shopping for things and thinking out trips for best deals we do just fine. I
started going to too many friends funerals and decided it was time to enjoy life, especially since my first working experience was picking cotton with
a gunny sack at age 10 on the farm. We don't regret it and I had a close call at age 59 so glad I had done some of my bucket list and working on the
rest of the list as I type this, LOL. Don't chase retirement dreams but let retirement dreams chase you, enjoy yourselves because you just never know
when the time clock is set to run out on you. Take Care & Travel Safe----"No Hurry, No Worry, Just FUN" bajafun777 |
You are correct master, I am chasing the dollar. Round and round we go. I feel like I am in one of those acrylic boxes with dollar bills flying
around, with my arms grabbing and stuffing bills into my pockets
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zoesterone
Nomad
Posts: 127
Registered: 5-8-2011
Location: Mazatlan, soon to be Baja
Member Is Offline
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| Quote: | Originally posted by Bajafun777
Look you will always be chasing dollars if you think about what you think you need to retire. Sit down and figure out just how much you save by not
working like not having to buy such things as work clothes, meals from home, transportation costs, insurance for car as mileage counts, less taxes due
to lesser monies coming in during retirement, not buying all of the other employees charity event tickets or other kid function tickets etc. You will
be amazed how much this adds up to during the month. Next just cut down on the buying of things that you buy on impulse but don't need, you all know
about things that go in closets or drawers never to be seen again once bought.
I retired at 57 and just told my wife we will get by and with smarter shopping for things and thinking out trips for best deals we do just fine. I
started going to too many friends funerals and decided it was time to enjoy life, especially since my first working experience was picking cotton with
a gunny sack at age 10 on the farm. We don't regret it and I had a close call at age 59 so glad I had done some of my bucket list and working on the
rest of the list as I type this, LOL. Don't chase retirement dreams but let retirement dreams chase you, enjoy yourselves because you just never know
when the time clock is set to run out on you. Take Care & Travel Safe----"No Hurry, No Worry, Just FUN" bajafun777 |
This is excellent advice and spot on. There is no magic formula and everyone has different ideas of what they need to "be happy". I find it takes very
little in Mexico and it is mostly up to not being a major consumer. There is plenty left for fun.
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nbacc
Senior Nomad
Posts: 770
Registered: 12-27-2008
Location: Northern California
Member Is Offline
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I retired at 55 from public school teaching. I loved it but when I was done I was done, I also had been socking into my 401 since my first month of
teaching and was ready to go. BUT the health insurance really made me sit down and crunch the numbers, We also own a house in Sf and are not
planning on moving there full time. Would I do the same again? Even though it is tight and we make it work I think I would. I took a little part
time job that I am enjoying but can quit anytime and take a month or so off to go to Mexico whenever, It works for us,. Nancy
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Osprey
Ultra Nomad
Posts: 3694
Registered: 5-23-2004
Location: Baja Ca. Sur
Member Is Offline
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This might help. Most of my gringo neighbors, way down here by the tip of the peninsula, drive back or fly back to the states to use major insurance
plans in special medical facilities in the states. The costs of their care, in U.S. dollars (eye work, knee replacement, heart operations, etc. etc.)
is a staggering amount (in the millions paid by the insurors) compared with any expense they may lavish on their home and habits or families. So if
you have that coverage, the luxury of travel whenever and wherever you need to go, all the other considerations dwindle to a pittance ---- if you
don't have those, you'll need to spend every extra dime on care in Mexico.
Here's the rub. Care in Mexico is chump change for the small stuff but major medical needs down here could really eat your lunch for services you
needed and received at Kaiser or Cedars, etc. for which you'll be sorely pressed to recover.
Most of these high rollers live on 2K to 3K a month and think nothing of the $400,000 dollars the insuror pays for some special surgery (10 to 15
years of all the money they spent to live on in Mexico). That's the real big dollar picture in my view.
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durrelllrobert
Elite Nomad
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
Member Is Offline
Mood: thriving in Baja
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| Quote: | Originally posted by CortezBlue
| Quote: | Originally posted by bajagrouper
It is probably better info if you stated the equity in your home and not how much you owe. |
Good point
market value $800k
mortgage $300k |
$800k in AZ? You must be in a very high end neighborhood. I had a 5000 sq ft house in Litchfield Park and I had to pay someone $5k to take my $250k
equity. Of course that was in 1986.
Bob Durrell
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by durrelllrobert
| Quote: | Originally posted by CortezBlue
| Quote: | Originally posted by bajagrouper
It is probably better info if you stated the equity in your home and not how much you owe. |
Good point
market value $800k
mortgage $300k |
$800k in AZ? You must be in a very high end neighborhood. I had a 5000 sq ft house in Litchfield Park and I had to pay someone $5k to take my $250k
equity. Of course that was in 1986. |
La Sendas area near Saquaro Lake.
1.5 acre lots, no street lights, and 800 ft. above the valley with great mountain and city light views.
I was my own GC 13 years ago, so we were able to save a ton of dough up front.
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desertcpl
Super Nomad
Posts: 2400
Registered: 10-26-2008
Location: yuma,az
Member Is Offline
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well Cortez
you have pretty much answered your own question, I retired at 54,, had every thing paid off before, home, cars, boats, commercial property ( income )
some times you have to make a discussion to go the pay window and cash out,
it sounds like you are able to do it, and not look back
most people do reach that point some time. if your able to make the move, I remember when I first retired, I had so many bucket list thing that we did
it was exciting,, some times I do miss being in business, but sure don't miss the hours and having employees
I also should add, that I did take a big hit in income for being in business to retirement,, but never looked back, we did just fine
[Edited on 4-27-2013 by desertcpl]
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durrelllrobert
Elite Nomad
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
Member Is Offline
Mood: thriving in Baja
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| Quote: | Originally posted by CortezBlue
La Sendas area near Saquaro Lake.
1.5 acre lots, no street lights, and 800 ft. above the valley with great mountain and city light views.
I was my own GC 13 years ago, so we were able to save a ton of dough up front. |
You must be off Teria Mesa or Copper Canyon?
Bob Durrell
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BajaBlanca
Select Nomad
Posts: 13212
Registered: 10-28-2008
Location: La Bocana, BCS
Member Is Offline
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I find it interesting that retiring is not only about money
Some folks actually love what they do and are not remotely interested in stopping. I have a wealthy, very wealthy uncle, and at 70 he says he wants
to die working. Go figure.
Others can't wait, they retire and never look back.
If you crunch your numbers and financially you can make it work......I say give it a whirl. If you don't like it, you can ALWAYS find work to do
again......learn something new.....volunteer.....
It is a big decision, wish you the best of luck in making the right one.
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absinvestor
Senior Nomad
Posts: 725
Registered: 11-28-2009
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I retired the first time at 52. We sold our house in the US and moved to Mexico where the cost of living was much lower. We had sold a couple of
businesses that we owned( on contracts) and used that monthly income to live on. The wife became homesick for the kids and so we eventually returned
to the US. Although we still had sufficient income to live the cost of living in the US was much higher and , of course, we needed to purchase a house
which added a new monthly payment. I did not want to start depleting our savings so went back to work at the age of 58 and worked for 4 years before
retiring for the second and final time at 62. What has not been discussed and what you'll want to put into the equation is 1. Social security benefits
are based on lifetime earnings. You don't give your wife's age but I'm assuming that she retired at a fairly young age. By retiring early you
adversely effect the amount of your future social security benefits and that effect can be huge since our highest earning years are normally our last
working years. 2. Generally speaking as we get older our kids move out etc and the years between the mid 50's and retirement allow us to dump more
money into 401ks, IRA's vs (when retiring early) maybe having to withdraw funds from those accounts (Without earned income you can't add to those
retirement vehicles.) 3.Future income tax can become a problem. I'm assuming that your wife's retirement is fully taxable. Add that to 1/2 of your
social security benefit and monies withdrawn from 401k's etc and amounts over approx. $32000 are taxable. We often think that social security is not
taxable but depending on earned income which includes withdrawals from IRA's and retirement checks up to 85% can be taxed. (As we get older deductions
that we have enjoyed ie children, mortgage interest etc go away. Additionally medical deductions currently limited to amounts over 7.5% are being
increased to 10% in 2014 etc.)
In our case we were burned out at 52 and dreaded going into work. Financially we would have been better off to delay that retirement. ( For us the
hit was less severe because we returned to work.) Also on a personal note I don't see expenses in retirement as being less. While we do spend less on
clothes and the other items listed by bajafun777 we spend a great deal more eating out, golfing and traveling. Retirement is only fun if you can get
out and enjoy it. Good luck!!
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by absinvestor
I retired the first time at 52. We sold our house in the US and moved to Mexico where the cost of living was much lower. We had sold a couple of
businesses that we owned( on contracts) and used that monthly income to live on. The wife became homesick for the kids and so we eventually returned
to the US. Although we still had sufficient income to live the cost of living in the US was much higher and , of course, we needed to purchase a house
which added a new monthly payment. I did not want to start depleting our savings so went back to work at the age of 58 and worked for 4 years before
retiring for the second and final time at 62. What has not been discussed and what you'll want to put into the equation is 1. Social security benefits
are based on lifetime earnings. You don't give your wife's age but I'm assuming that she retired at a fairly young age. By retiring early you
adversely effect the amount of your future social security benefits and that effect can be huge since our highest earning years are normally our last
working years. 2. Generally speaking as we get older our kids move out etc and the years between the mid 50's and retirement allow us to dump more
money into 401ks, IRA's vs (when retiring early) maybe having to withdraw funds from those accounts (Without earned income you can't add to those
retirement vehicles.) 3.Future income tax can become a problem. I'm assuming that your wife's retirement is fully taxable. Add that to 1/2 of your
social security benefit and monies withdrawn from 401k's etc and amounts over approx. $32000 are taxable. We often think that social security is not
taxable but depending on earned income which includes withdrawals from IRA's and retirement checks up to 85% can be taxed. (As we get older deductions
that we have enjoyed ie children, mortgage interest etc go away. Additionally medical deductions currently limited to amounts over 7.5% are being
increased to 10% in 2014 etc.)
In our case we were burned out at 52 and dreaded going into work. Financially we would have been better off to delay that retirement. ( For us the
hit was less severe because we returned to work.) Also on a personal note I don't see expenses in retirement as being less. While we do spend less on
clothes and the other items listed by bajafun777 we spend a great deal more eating out, golfing and traveling. Retirement is only fun if you can get
out and enjoy it. Good luck!! |
Some good stuff.
My wife was 54 when she took her retirement and it is a good thing she did.
She is an educator and retired at the top of the Superintendent heep in her district, how ever, the district had a phased retirement program that
allowed her to retire but retain her position. However, she took a 25% cut in pay and did not receive any benefits. So it is like doing her job for
about 1/2 of what she was making.
However, the year after she retired they changed the medical spiff that she received per year. Granted it is about $3600 per year toward our future
insurance expenses. So she is grandfathered in on that plus they have raised the annual percentages that she still has to pay, but get's no benefit
from.
As far as the SS side of things, I don't think it will affect me due to the fact, according to SS, you must have 35 years of paying into SS. Also, I
have been an highly compensated individual and paid the max SS for the past 15 years. I have played with the numbers and even if I quite today, it
doesn't make much difference to my 62 or 66.5 retirement picture.
I also will have small pension that I can take today, but will probably wait til 60 when it will be about $1100 per month or 65 when it hits $ 1500.
We will not be moving to Mexico permanently, although, we are, as of this year, Permanente status. Our goal is to chase the sun in the winter and run
away from it in the summer.
We use to own a beach front condo in Oceanside that we sold in 2005, but we still have many friends who own condos in the same place. So chances are
we would hang in San Diego Cty during Aug and or Sept. Or go to Boise where we have other friends that have a cabin that we could rent for a month or
two.
I haven't mentioned my wife's pension is nearly $90K per year gross. So she get's about 6K per month clear. And except for a small mortgage on our
US house, we don't have any expenses.
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absinvestor
Senior Nomad
Posts: 725
Registered: 11-28-2009
Member Is Offline
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My vote is for you to retire early Monday morning!! You can afford it- hopefully you'll have many healthy years to do whatever is fun for you.
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline
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| Quote: | Originally posted by absinvestor
My vote is for you to retire early Monday morning!! You can afford it- hopefully you'll have many healthy years to do whatever is fun for you.
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That's the damn answer I've been looking for, besides, I can always go back to work!!
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