The “I want to retire soon” thread (5 Viewers)

[General Malaise]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

You can’t draw SS rom both spouses, only the highest amount

This is another thing I wouldn't mind learning more about.

 

[General Malaise]

Do My Spouse's Earnings Affect My Social Security Benefits?

Your mate’s earnings record has no impact on your retirement benefit, but it does determine what you could receive in spousal benefits. Find out more.

www.aarp.org

 

[supermike80]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

You can’t draw SS rom both spouses, only the highest amount

I don't believe that's accurate.
If it is, then I am divorcing my wife and we sill live together. Seriously

Oh, I’m right on that.

I think you're referring to if one spouse is dead and you are drawing his or hers. If you have two living spouses, both who worked full time and have earned SS, they both draw the full amount.

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

You can’t draw SS rom both spouses, only the highest amount

I don't believe that's accurate.
If it is, then I am divorcing my wife and we still live together. Seriously

edit I was thinking if one died

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

You can’t draw SS rom both spouses, only the highest amount

I don't believe that's accurate.
If it is, then I am divorcing my wife and we sill live together. Seriously

Oh, I’m right on that.

I think you're referring to if one spouse is dead and you are drawing his or hers. If you have two living spouses, both who worked full time and have earned SS, they both draw the full amount.

You are correct, my bad

 

[supermike80]

Work Benefits for Married Couples​

Each married person is entitled to their social security benefits based on their own work record and is available to file for when the age of 62 is reached, though waiting beyond early retirement can increase the amount of the social security benefit. Also, a married couple is eligible to collect benefits up to 50% of their spouse, whichever is greater. This is a great help if one spouse is a much higher earner and is known as a “spousal benefit.”

 

[stbugs]

This is probably a long shot but is anyone planning on a retirement that covers more that 2 people? Our daughter will be with us for the rest of our lives.

Outside of slowly moving assets into her name as we age, I am unsure what else I should be looking at.

You should check taxes before moving anything. For instance, if married you have a $500k cap on no capital gains to sell your house and she would only have $250k. There’s also the cost basis move up. Lots of considerations tax wise that you should ask about or at least know the implications. If you aren’t close to an estate tax, might be better not to move anything and your daughter has no taxes/gets a higher cost basis. They change that stuff too.

 

[-OZ-]

Work Benefits for Married Couples​

Each married person is entitled to their social security benefits based on their own work record and is available to file for when the age of 62 is reached, though waiting beyond early retirement can increase the amount of the social security benefit. Also, a married couple is eligible to collect benefits up to 50% of their spouse, whichever is greater. This is a great help if one spouse is a much higher earner and is known as a “spousal benefit.”

the person with the higher benefit should usually wait until 70 (with current rules) as the widow(er) can claim their spouse’s benefit when they die.

 

[JohnnyU]

Work Benefits for Married Couples​

Each married person is entitled to their social security benefits based on their own work record and is available to file for when the age of 62 is reached, though waiting beyond early retirement can increase the amount of the social security benefit. Also, a married couple is eligible to collect benefits up to 50% of their spouse, whichever is greater. This is a great help if one spouse is a much higher earner and is known as a “spousal benefit.”

the person with the higher benefit should usually wait until 70 (with current rules) as the widow(er) can claim their spouse’s benefit when they die.

I don’t want my wife’s new husband spending my money.

 

[stbugs]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

We aren’t planning on ramen and our lake house when done might end up being a bit more than the current house (hoping close), but $18k does seem way more than I’d feel we’d need. My wife and I do well but earning $216k after taxes (fed, state and SS/medicate) after maxing both of our 401ks would be like $400k+ per year. Just 2 of us instead of 5 for every meal/clothes/etc., no college payments, no $60k a year for retirement and $400k+ seems way more than I’d ever imagine needing.

I think our combined SS will be around $60k per year (could be me just lowballing) so I’d be really really happy getting $180k per year with SS. I was looking at back door Roths and with the standard deduction, the taxes on your first $123k is like 10%, which considering the tax rates traditional pre-tax contributions have been at, that would be a great swap.

I’m hoping that if all goes well that’s our “earnings” per year so our boys will have the house to keep or sell and have a nice savings as well. I was originally hoping to stop in a few years but I took a new role that’s a lot less stressful so looking maybe 60-62 to full retire. My wife can just keep chugging. The Roth conversion complicates that a bit with when to start SS. I’ll be her boy toy!

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

We aren’t planning on ramen and our lake house when done might end up being a bit more than the current house (hoping close), but $18k does seem way more than I’d feel we’d need. My wife and I do well but earning $216k after taxes (fed, state and SS/medicate) after maxing both of our 401ks would be like $400k+ per year. Just 2 of us instead of 5 for every meal/clothes/etc., no college payments, no $60k a year for retirement and $400k+ seems way more than I’d ever imagine needing.

I think our combined SS will be around $60k per year (could be me just lowballing) so I’d be really really happy getting $180k per year with SS. I was looking at back door Roths and with the standard deduction, the taxes on your first $123k is like 10%, which considering the tax rates traditional pre-tax contributions have been at, that would be a great swap.

I’m hoping that if all goes well that’s our “earnings” per year so our boys will have the house to keep or sell and have a nice savings as well. I was originally hoping to stop in a few years but I took a new role that’s a lot less stressful so looking maybe 60-62 to full retire. My wife can just keep chugging. The Roth conversion complicates that a bit with when to start SS. I’ll be her boy toy!

Hell, I thought I was doing well.

 

[stbugs]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

We aren’t planning on ramen and our lake house when done might end up being a bit more than the current house (hoping close), but $18k does seem way more than I’d feel we’d need. My wife and I do well but earning $216k after taxes (fed, state and SS/medicate) after maxing both of our 401ks would be like $400k+ per year. Just 2 of us instead of 5 for every meal/clothes/etc., no college payments, no $60k a year for retirement and $400k+ seems way more than I’d ever imagine needing.

I think our combined SS will be around $60k per year (could be me just lowballing) so I’d be really really happy getting $180k per year with SS. I was looking at back door Roths and with the standard deduction, the taxes on your first $123k is like 10%, which considering the tax rates traditional pre-tax contributions have been at, that would be a great swap.

I’m hoping that if all goes well that’s our “earnings” per year so our boys will have the house to keep or sell and have a nice savings as well. I was originally hoping to stop in a few years but I took a new role that’s a lot less stressful so looking maybe 60-62 to full retire. My wife can just keep chugging. The Roth conversion complicates that a bit with when to start SS. I’ll be her boy toy!

Hell, I thought I was doing well.

Note that I was saying that “needing” $18k per month would be equivalent to a nice payday now. I’d be ecstatic if we are getting $15k a month in retirement (includes $5k from our SS combined). I certainly don’t feel wealthy nowadays. House has done phenomenal. Lucky we got into our first house in 1998 (this is second), but I share my 8 year old car with my youngest and my older sons drive 11-12 year old cars. My wife’s Jeep is 3+ and we got lucky to buy that in 2020 before **** got real. I feel like we do well but I’m still amazed at the $60-100k cars everyone drives around in now.

 

[-OZ-]

Note that I was saying that “needing” $18k per month would be equivalent to a nice payday now.

Not complaining, but realizing that if we stay the course and don’t start pulling funds before 60, that we will probably be in position to spend double our current expenses at 70, gives a reason to rethink our plan.

 

[NewlyRetired]

This is probably a long shot but is anyone planning on a retirement that covers more that 2 people? Our daughter will be with us for the rest of our lives.

Outside of slowly moving assets into her name as we age, I am unsure what else I should be looking at.

You should check taxes before moving anything. For instance, if married you have a $500k cap on no capital gains to sell your house and she would only have $250k. There’s also the cost basis move up. Lots of considerations tax wise that you should ask about or at least know the implications. If you aren’t close to an estate tax, might be better not to move anything and your daughter has no taxes/gets a higher cost basis. They change that stuff too.

Thank you for advice.

We will likely significantly downsize and move into some sort of condo as we age. I was hoping that the condo (or what ever) we could put in her name entirely so that the asset is protected in case one of us has to go into a home.

Is that possible/legal to do if we pay with cash?

 

[stbugs]

Note that I was saying that “needing” $18k per month would be equivalent to a nice payday now.

Not complaining, but realizing that if we stay the course and don’t start pulling funds before 60, that we will probably be in position to spend double our current expenses at 70, gives a reason to rethink our plan.

It’s hard to figure out because I don’t know if we’ll have to support any of the kids post college, etc. I do know that we are putting away a lot in 401ks and since we didn’t really have a chance to load up 529s (wife was laid off during dotcom bubble and that turned into 12-13 year stay at home - she’s more than made up for it now), we pay a decent chunk per year in college costs (about halfway done!). Those two things right there are huge and they won’t be there when we do retire. Just college, kids and 401ks are probably $8-10k a month.

 

[dgreen]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

Exactly. My current estimate puts me at over $4500 in SS, my wife will get half of that (SAHM most of our adult lives) so that’s $6750 if I wait until I’m 70 to claim in today’s dollars (presuming SS in its current form). Military pension plus VA gives us another $6000 today. Assuming I don’t quit early, my federal civilian pension kicks in another $3k monthly. That’s $15,750 at 70 in today’s money without touching investments.

I had been wondering if people were talking about two different things. I think it's one thing to say that you expect to have $15k/month in income during retirement and another to plan to spend that much. I guess some of you have expressed that you don't plan on leaving money behind when you die, so maybe your plan is to spend all you make which sounds like it would include spending on kids/grandkids (so basically giving away a decent amount).

 

[stbugs]

This is probably a long shot but is anyone planning on a retirement that covers more that 2 people? Our daughter will be with us for the rest of our lives.

Outside of slowly moving assets into her name as we age, I am unsure what else I should be looking at.

You should check taxes before moving anything. For instance, if married you have a $500k cap on no capital gains to sell your house and she would only have $250k. There’s also the cost basis move up. Lots of considerations tax wise that you should ask about or at least know the implications. If you aren’t close to an estate tax, might be better not to move anything and your daughter has no taxes/gets a higher cost basis. They change that stuff too.

Thank you for advice.

We will likely significantly downsize and move into some sort of condo as we age. I was hoping that the condo (or what ever) we could put in her name entirely so that the asset is protected in case one of us has to go into a home.

Is that possible/legal to do if we pay with cash?

Not sure at all but estate taxes/wills aren’t hard. My wife and her two sisters inherited their parent’s house. It wasn’t a lot but they split it 3 ways and there were no taxes.

Seems like a no brainer to seek the current house while you can get that $500k capital gains for free. You never know what tax laws will be but that would pull that completely off the table as the condo’s cost basis would be whatever you buy it at even if you “rolled” over the equity. That tax law also says you start over the $500k (married couple) capital gains after two years of living there, so again if you live long enough, you might have that benefit again.

I would talk to an accountant about tax ramifications and a lawyer about estate planning and not rush to put your daughter’s name on anything as long as you have her as the heir to everything.

I don’t know you or your wife but the only worry I would have is if one of you were to remarry after the other spouse passes. My FIL had a “girlfriend” and she talked about marriage and my wife and her sisters were adamant to him about no reason to do that. His girlfriend didn’t even show at his funeral. Lots of good diggers out there and she was absolutely one of them even though she had dated him before he was ever married. As soon as cancer got bad and there wasn’t going to be a chance to get married she seemed to not show up at all. He couldn’t take her out anymore. My wife’s good friend’s dad remarried someone clearly out for the money and she got a nice chunk of change. Anyway, that’s the only scenario that you should make sure is completely covered.

 

[mr. furley]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

 

[JohnnyU]

Some might say go out of this world exactly as you entered it, broke naked and drooling on yourself.

 

[General Malaise]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

As a person who lived in a flop/frathouse with other dudes in Mississippi for 4 + years I would strongly advise against it. If the bullets don't get ya, the ticks will.

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

 

[fruity pebbles]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

 

[-OZ-]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

The fish don’t taste as good from a river as they do from a pond or lake imo. Except Trout

 

[⚡DEADHEAD⚡]

This is probably a long shot but is anyone planning on a retirement that covers more that 2 people? Our daughter will be with us for the rest of our lives.

Outside of slowly moving assets into her name as we age, I am unsure what else I should be looking at.

You should check taxes before moving anything. For instance, if married you have a $500k cap on no capital gains to sell your house and she would only have $250k. There’s also the cost basis move up. Lots of considerations tax wise that you should ask about or at least know the implications. If you aren’t close to an estate tax, might be better not to move anything and your daughter has no taxes/gets a higher cost basis. They change that stuff too.

Don't forget you can deduct improvements. Keep those records.

 

[Sand]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

You naming it Golden Pond?

 

[General Malaise]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

The fish don’t taste as good from a river as they do from a pond or lake imo. Except Trout

Uhhhhh, salmon?

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

You can’t draw SS rom both spouses, only the highest amount

This is another thing I wouldn't mind learning more about.

I edited to say this is true if one dies.

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

The fish don’t taste as good from a river as they do from a pond or lake imo. Except Trout

Uhhhhh, salmon?

I dislike salmon, but my wife loves it

 

[stbugs]

This is probably a long shot but is anyone planning on a retirement that covers more that 2 people? Our daughter will be with us for the rest of our lives.

Outside of slowly moving assets into her name as we age, I am unsure what else I should be looking at.

You should check taxes before moving anything. For instance, if married you have a $500k cap on no capital gains to sell your house and she would only have $250k. There’s also the cost basis move up. Lots of considerations tax wise that you should ask about or at least know the implications. If you aren’t close to an estate tax, might be better not to move anything and your daughter has no taxes/gets a higher cost basis. They change that stuff too.

Don't forget you can deduct improvements. Keep those records.

Yep, size wise it’s one of the largest deductions normal people can get. If you didn’t get it, even with long term gains it’s still a $100k+ owed on $500k.

 

[SFBayDuck]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

The fish don’t taste as good from a river as they do from a pond or lake imo. Except Trout

Pond

 

[JohnnyU]

$15,000 a MONTH??? Why?

Why not? That’s what we plan, after adjusting for inflation.

You expect to have a mortgage payment during retirement?

We do. We’ll move at retirement. The rate will be the deciding factor regarding paying it off quickly or taking the mortgage.

Just seems like a lot. I guess I'm poor.

You know, from social security alone, I think we will bring in around $8500/month, so maybe $15k is not the stretch you think it is?

I get it. I guess in my head, I'm eyeballing living like a college sophomore as a retired person. No mortgage, no car payment, no golf memberships, no yachts....etc. But if I HAVE the means, then I can live a little and spend money on my family on things like vacations, etc.

100% this

i'm moving to Mississippi and living in a flophouse with 5 other dudes. my entertainment will be walks in nature and fishing.

Having my own fishing pond sounds attractive to me.

That’s what I want. A small house on fishing pond and a small Boston Whaler. Not much more.

we’ll go with the river instead of pond, but otherwise yes.

The fish don’t taste as good from a river as they do from a pond or lake imo. Except Trout

Pond

Maybe the fish taste better from your pool / cement pond.

 

[supermike80]

Some might say go out of this world exactly as you entered it, broke naked and drooling on yourself.

In diapers as well

 

[worrierking]

I haven't been around much lately, I opened up FBG and saw this thread. I am 60, worrierqueen is 59 and retired, and I'm looking to pull the trigger at 62. I work in local government and qualify for the pension now that I hit 60. Last year we bought our retirement home, a small house on a local river with a classic Louisiana swamp in the back. We're still in our main house until we sell it, but looking forward to living the life of a river rat in my dotage. Wife had a sales job and had some great years, so we've got a nice nest egg to go along with my pension, which should be in the neighborhood of 70% of my current salary. I won't get much SS as the pension is outside the system. I'll also be able to stay on our outstanding health insurance until medicare (wife too), so that's not a big issue.

I do some sportscasting for the local university and I'll continue that for some extra cash and my ego. Good luck fellow FBG geezers!!

 

[⚡DEADHEAD⚡]

So I think we may be underestimating the impact of inflation on our expected retirements for at least those of us looking 10 to 15 years out. My wife's pension, if she works 15 more years, will be $20k/month (includes social security, I believe...that's what the estimate says). She's a good earner, but modest by Bay Area means. I don't think $20k will be what we think it will be 15 years from now. I guess that's why 30 year mortgages, especially at low interest rates, become manageable over time. We bit off more that we could chew once upon a time, and that's paid off. I'll always advise folks to buy more house than they think they can afford...

Can't do the Lump Sum, which is an absurd number. I don't even want to state it. But we can't do it because we will forego medical benefits, which with the University of California, I'm told are top notch.

Learning a lot. Even flirting with establishing a firm retirement plan, but at ~15 years out, may not be ready yet.

I have a feeling many of us will have more $ than we think, but I also think that $ will not go as far as we think it will go in the future. Not too long ago, $40k for a decent new car was a fortune, now it's resonable. In 10 years, that number might be $75k.

 

[-OZ-]

So I think we may be underestimating the impact of inflation on our expected retirements for at least those of us looking 10 to 15 years out. My wife's pension, if she works 15 more years, will be $20k/month (includes social security, I believe...that's what the estimate says). She's a good earner, but modest by Bay Area means. I don't think $20k will be what we think it will be 15 years from now. I guess that's why 30 year mortgages, especially at low interest rates, become manageable over time. We bit off more that we could chew once upon a time, and that's paid off. I'll always advise folks to buy more house than they think they can afford...

Can't do the Lump Sum, which is an absurd number. I don't even want to state it. But we can't do it because we will forego medical benefits, which with the University of California, I'm told are top notch.

Learning a lot. Even flirting with establishing a firm retirement plan, but at ~15 years out, may not be ready yet.

I have a feeling many of us will have more $ than we think, but I also think that $ will not go as far as we think it will go in the future. Not too long ago, $40k for a decent new car was a fortune, now it's resonable. In 10 years, that number might be $75k.

All true, which is a reason I do all our planning in today’s money.
$15k monthly in today’s money seems healthy but manageable. $30k / monthly in 2045 seems like a lot more.

 

[guru_007]

I think some of you all are a bit out of touch with reality.
$15K/month is not only healthy, it is upper middle class. The MEDIAN household income is less than half of this amount, BEFORE taxes which means tens of millions of families are living on a lot less than this amount.
I also think some of you all are underestimating aging and dying. I can only speak from what I've seen, but my grandparents before dying lived on SS only for decades. No pensions, no 401k's. As my parents get older, they spend quite a bit less on discretionary things.
I know quite a few of you are petrified of long term health issues and home care, etc... And then there is the insurance discussion too. I've mentioned in other thread, but I can't stand insurance, biggest scam in the world, imho. Insurance is akin to gambling, and the only way you win is by losing. Insurance was illegal in the past due to this.

Last ramble is I've seen a number of people saying they'll never be able to afford this kind of money and there is no way they'll ever retire and so forth. The time to address this is NOW. Start saving, start investing, don't become overwhelmed. There has been a ton of information thrown around in this thread, quite a bit of misinformation as well. If you don't start planning for the future, hire someone that will for you. If you don't do either, I have no sympathies.

 

[Instinctive]

Guys, thanks for clarifying my comment on SS (and answering @ChiefD 's question with my lack of clarity). As you've pointed out, each year that SS is delayed, the amount rises by 8%. A consideration for me, too, is that SS is based on the best 35 years of earnings. For me, each current year has been replacing one of my first years in higher ed when I was making peanuts, so I'm benefiting by more than just the 8% factor. Ultimately, though, deciding when to start is a crapshoot where you're betting on your longevity. But as some of you pointed out, starting earlier and investing the funds has merit. Someone also mentioned the cost-of-living increases, and those were rather robust the past two years (5.9% and 8.7% ..upcoming is 3.2%).

My wife started her SS early, knowing that if she outlives me, she'll be the surviving spouse and can switch to my benefit.

You obviously know this, but for those that don't you can see and model your estimated SS benefits at ssa.gov. If you've never checked it out, it's kind of fun to review your full earnings record. I still have no idea how I survived in the Bay Area on the $26K I made in my first full year out of college in '97.

I've still got two years of zeros and another handful of 4-figure college years to replace. Just as an example of the effect tri-man is referencing, If I did continue to work until 62 (I sure hope not!) and continue to earn near what I am now, replacing those low-earning years means a difference of $400 a month at 62 and $900 at 70!

If I stopped working now, I would get about $1000/month starting at age 62. That feels like not a lot.

 

[supermike80]

So I think we may be underestimating the impact of inflation on our expected retirements for at least those of us looking 10 to 15 years out. My wife's pension, if she works 15 more years, will be $20k/month (includes social security, I believe...that's what the estimate says). She's a good earner, but modest by Bay Area means. I don't think $20k will be what we think it will be 15 years from now. I guess that's why 30 year mortgages, especially at low interest rates, become manageable over time. We bit off more that we could chew once upon a time, and that's paid off. I'll always advise folks to buy more house than they think they can afford...

Can't do the Lump Sum, which is an absurd number. I don't even want to state it. But we can't do it because we will forego medical benefits, which with the University of California, I'm told are top notch.

Learning a lot. Even flirting with establishing a firm retirement plan, but at ~15 years out, may not be ready yet.

I have a feeling many of us will have more $ than we think, but I also think that $ will not go as far as we think it will go in the future. Not too long ago, $40k for a decent new car was a fortune, now it's resonable. In 10 years, that number might be $75k.

You know...You're 100% right...I i have NO factor in for inflation and that's hugely important. Gotta do some refiguring

 

[mr. furley]

a ton of information thrown around in this thread, quite a bit of misinformation as well

this is pretty much America in a nutshell.


you want healthcare? well, better get to researching on your own.

where? there are literally thousands of sites to look at. some are good. some are crap. some are fraudulent.

how will you know? you won't. you just have to figure it out.

can i pay someone to figure this out for me? sure. it's really expensive and the person you pay may be good, may suck and may be a straight out cheat.

how much is enough? there are too many variables to predict. it's all just a guess. set aside anywhere from 5- 70% of your take home pay. any amount is enough, but it's also not.


good old "pull yourself up by your bootstraps" America. if you can't figure out a complex system designed to screw you, then you deserve whatever horrible things happen to you and no one cares.



brought to you by my 15 year old asking me "why don't schools teach us useful stuff like taxes and how to budget? or how to pay for a house and stuff? why should i have to take 2 years of French and choir when i'd rather take home ec but they won't let me?"

NOBODY KNOWS, KIDDO.

 

[matttyl]

I haven't been around much lately, I opened up FBG and saw this thread. I am 60, worrierqueen is 59 and retired, and I'm looking to pull the trigger at 62. I work in local government and qualify for the pension now that I hit 60. Last year we bought our retirement home, a small house on a local river with a classic Louisiana swamp in the back. We're still in our main house until we sell it, but looking forward to living the life of a river rat in my dotage. Wife had a sales job and had some great years, so we've got a nice nest egg to go along with my pension, which should be in the neighborhood of 70% of my current salary. I won't get much SS as the pension is outside the system. I'll also be able to stay on our outstanding health insurance until medicare (wife too), so that's not a big issue.

I do some sportscasting for the local university and I'll continue that for some extra cash and my ego. Good luck fellow FBG geezers!!

I mentioned it above - take a very good look at exactly how your pension works. If it’s like most, you can take a reduced amount so that if something happens to you worrierqueen will continue to receive some amount of it. It’s a survivor benefit. Or looked at another way - a life insurance policy (on you), where the benefit is a continuation of your pension for her remaining lifetime (but only if she outlives you). Depending on the amounts, your ages, your health, and quite a few other factors, you may be better suited to just purchase a life insurance policy and take the full pension amount for yourself. If nothing else, check the math before you make your election, as often you can’t change it later.

 

[New Binky the Doormat]

You know...You're 100% right...I i have NO factor in for inflation and that's hugely important. Gotta do some refiguring

firecalc is your friend.

 

[Desert_Power]

So I think we may be underestimating the impact of inflation on our expected retirements for at least those of us looking 10 to 15 years out. My wife's pension, if she works 15 more years, will be $20k/month (includes social security, I believe...that's what the estimate says). She's a good earner, but modest by Bay Area means. I don't think $20k will be what we think it will be 15 years from now. I guess that's why 30 year mortgages, especially at low interest rates, become manageable over time. We bit off more that we could chew once upon a time, and that's paid off. I'll always advise folks to buy more house than they think they can afford...

Can't do the Lump Sum, which is an absurd number. I don't even want to state it. But we can't do it because we will forego medical benefits, which with the University of California, I'm told are top notch.

Learning a lot. Even flirting with establishing a firm retirement plan, but at ~15 years out, may not be ready yet.

I have a feeling many of us will have more $ than we think, but I also think that $ will not go as far as we think it will go in the future. Not too long ago, $40k for a decent new car was a fortune, now it's resonable. In 10 years, that number might be $75k.

You know...You're 100% right...I i have NO factor in for inflation and that's hugely important. Gotta do some refiguring

I prefer to think in things in terms of current dollars. As long as you use inflation adjusted returns in your planning, it is picked up.

 

[JohnnyU]

I think some of you all are a bit out of touch with reality.
$15K/month is not only healthy, it is upper middle class. The MEDIAN household income is less than half of this amount, BEFORE taxes which means tens of millions of families are living on a lot less than this amount.
I also think some of you all are underestimating aging and dying. I can only speak from what I've seen, but my grandparents before dying lived on SS only for decades. No pensions, no 401k's. As my parents get older, they spend quite a bit less on discretionary things.
I know quite a few of you are petrified of long term health issues and home care, etc... And then there is the insurance discussion too. I've mentioned in other thread, but I can't stand insurance, biggest scam in the world, imho. Insurance is akin to gambling, and the only way you win is by losing. Insurance was illegal in the past due to this.

Last ramble is I've seen a number of people saying they'll never be able to afford this kind of money and there is no way they'll ever retire and so forth. The time to address this is NOW. Start saving, start investing, don't become overwhelmed. There has been a ton of information thrown around in this thread, quite a bit of misinformation as well. If you don't start planning for the future, hire someone that will for you. If you don't do either, I have no sympathies.

Voice of reason. I make good money, a healthy 403b, pension, and will have a high end SS, own a nice home (almost), not much debt (only what’s left on mortgage), and some of the figures thrown around in this thread are not in touch with reality for most, including me. Good for those that expect to be rich in their retirement.

 

[worrierking]

I haven't been around much lately, I opened up FBG and saw this thread. I am 60, worrierqueen is 59 and retired, and I'm looking to pull the trigger at 62. I work in local government and qualify for the pension now that I hit 60. Last year we bought our retirement home, a small house on a local river with a classic Louisiana swamp in the back. We're still in our main house until we sell it, but looking forward to living the life of a river rat in my dotage. Wife had a sales job and had some great years, so we've got a nice nest egg to go along with my pension, which should be in the neighborhood of 70% of my current salary. I won't get much SS as the pension is outside the system. I'll also be able to stay on our outstanding health insurance until medicare (wife too), so that's not a big issue.

I do some sportscasting for the local university and I'll continue that for some extra cash and my ego. Good luck fellow FBG geezers!!

I mentioned it above - take a very good look at exactly how your pension works. If it’s like most, you can take a reduced amount so that if something happens to you worrierqueen will continue to receive some amount of it. It’s a survivor benefit. Or looked at another way - a life insurance policy (on you), where the benefit is a continuation of your pension for her remaining lifetime (but only if she outlives you). Depending on the amounts, your ages, your health, and quite a few other factors, you may be better suited to just purchase a life insurance policy and take the full pension amount for yourself. If nothing else, check the math before you make your election, as often you can’t change it later.

In discussing this with my stockbroker and others who have retired with my system, it appears that taking my full retirement benefits and a laddered term life plan in case of early croaking are the best way to handle this.

 

[matttyl]

I haven't been around much lately, I opened up FBG and saw this thread. I am 60, worrierqueen is 59 and retired, and I'm looking to pull the trigger at 62. I work in local government and qualify for the pension now that I hit 60. Last year we bought our retirement home, a small house on a local river with a classic Louisiana swamp in the back. We're still in our main house until we sell it, but looking forward to living the life of a river rat in my dotage. Wife had a sales job and had some great years, so we've got a nice nest egg to go along with my pension, which should be in the neighborhood of 70% of my current salary. I won't get much SS as the pension is outside the system. I'll also be able to stay on our outstanding health insurance until medicare (wife too), so that's not a big issue.

I do some sportscasting for the local university and I'll continue that for some extra cash and my ego. Good luck fellow FBG geezers!!

I mentioned it above - take a very good look at exactly how your pension works. If it’s like most, you can take a reduced amount so that if something happens to you worrierqueen will continue to receive some amount of it. It’s a survivor benefit. Or looked at another way - a life insurance policy (on you), where the benefit is a continuation of your pension for her remaining lifetime (but only if she outlives you). Depending on the amounts, your ages, your health, and quite a few other factors, you may be better suited to just purchase a life insurance policy and take the full pension amount for yourself. If nothing else, check the math before you make your election, as often you can’t change it later.

In discussing this with my stockbroker and others who have retired with my system, it appears that taking my full retirement benefits and a laddered term life plan in case of early croaking are the best way to handle this.

Good to know you’ve looked into it. Laddered term policies are one way to handle it. If retiring at 62, though, it could be difficult to find a term policy longer than 20 years - and could be difficult to find one even that long (many companies don’t like term policies on the books for folks in their 80s). Maybe look into having a very large 10-20 year policy (or one of each) with a much smaller permanent policy on top.

ETA - Just looked at my primary carrier. Issues ages are up to 75 for a 10 year term, 70 for a 15 year term, 65 for a 20 year term, 60 for a 25 year term, and finally max of 55 for a 30 year term. Means you can possibly get a 25 year term now, but don’t wait. Next year the longest term you may be able to do is 20.

 

[NutterButter]

I factor in 3% inflation. Its a little above the fed target but gives me a little bit of a cushion. All my calculations have a bit of a cushion. We're obviously a little above that now but we were also below that for quite a few years so I think its a safe number.

 

[dgreen]

I think some of you all are a bit out of touch with reality.
$15K/month is not only healthy, it is upper middle class. The MEDIAN household income is less than half of this amount, BEFORE taxes which means tens of millions of families are living on a lot less than this amount.
I also think some of you all are underestimating aging and dying. I can only speak from what I've seen, but my grandparents before dying lived on SS only for decades. No pensions, no 401k's. As my parents get older, they spend quite a bit less on discretionary things.
I know quite a few of you are petrified of long term health issues and home care, etc... And then there is the insurance discussion too. I've mentioned in other thread, but I can't stand insurance, biggest scam in the world, imho. Insurance is akin to gambling, and the only way you win is by losing. Insurance was illegal in the past due to this.

Last ramble is I've seen a number of people saying they'll never be able to afford this kind of money and there is no way they'll ever retire and so forth. The time to address this is NOW. Start saving, start investing, don't become overwhelmed. There has been a ton of information thrown around in this thread, quite a bit of misinformation as well. If you don't start planning for the future, hire someone that will for you. If you don't do either, I have no sympathies.

Voice of reason. I make good money, a healthy 403b, pension, and will have a high end SS, own a nice home (almost), not much debt (only what’s left on mortgage), and some of the figures thrown around in this thread are not in touch with reality for most, including me. Good for those that expect to be rich in their retirement.

Dual income households can make a huge difference.

 

[JohnnyU]

I think some of you all are a bit out of touch with reality.
$15K/month is not only healthy, it is upper middle class. The MEDIAN household income is less than half of this amount, BEFORE taxes which means tens of millions of families are living on a lot less than this amount.
I also think some of you all are underestimating aging and dying. I can only speak from what I've seen, but my grandparents before dying lived on SS only for decades. No pensions, no 401k's. As my parents get older, they spend quite a bit less on discretionary things.
I know quite a few of you are petrified of long term health issues and home care, etc... And then there is the insurance discussion too. I've mentioned in other thread, but I can't stand insurance, biggest scam in the world, imho. Insurance is akin to gambling, and the only way you win is by losing. Insurance was illegal in the past due to this.

Last ramble is I've seen a number of people saying they'll never be able to afford this kind of money and there is no way they'll ever retire and so forth. The time to address this is NOW. Start saving, start investing, don't become overwhelmed. There has been a ton of information thrown around in this thread, quite a bit of misinformation as well. If you don't start planning for the future, hire someone that will for you. If you don't do either, I have no sympathies.

Voice of reason. I make good money, a healthy 403b, pension, and will have a high end SS, own a nice home (almost), not much debt (only what’s left on mortgage), and some of the figures thrown around in this thread are not in touch with reality for most, including me. Good for those that expect to be rich in their retirement.

Dual income households can make a huge difference.

True, until divorce or death. Not many on here will have 500K annual income during retirement as someone mentioned I believe. Those that do, good for them. I doubt this thread is of much use to them.

 

[NutterButter]

So I think we may be underestimating the impact of inflation on our expected retirements for at least those of us looking 10 to 15 years out. My wife's pension, if she works 15 more years, will be $20k/month (includes social security, I believe...that's what the estimate says). She's a good earner, but modest by Bay Area means. I don't think $20k will be what we think it will be 15 years from now. I guess that's why 30 year mortgages, especially at low interest rates, become manageable over time. We bit off more that we could chew once upon a time, and that's paid off. I'll always advise folks to buy more house than they think they can afford...

Can't do the Lump Sum, which is an absurd number. I don't even want to state it. But we can't do it because we will forego medical benefits, which with the University of California, I'm told are top notch.

Learning a lot. Even flirting with establishing a firm retirement plan, but at ~15 years out, may not be ready yet.

I have a feeling many of us will have more $ than we think, but I also think that $ will not go as far as we think it will go in the future. Not too long ago, $40k for a decent new car was a fortune, now it's resonable. In 10 years, that number might be $75k.

You know...You're 100% right...I i have NO factor in for inflation and that's hugely important. Gotta do some refiguring

I prefer to think in things in terms of current dollars. As long as you use inflation adjusted returns in your planning, it is picked up.

My returns aren't inflation adjusted but my deductions are. I think that makes the most sense. So I figure out what I'd need/desire in today's dollars and then on my little spreadsheet, each year that deduction increases based on a fixed inflation rate. I also inflation adjust SS (though at 1 percentage point less just to play it safe) and my house.