Contemplating Retirement - Describe Your Transition
I really appreciated and enjoyed the update.
I am meeting with a financial advisor tomorrow. I think I’ve got a good handle on where we stand for retirement. This will confirm it (or not) with the eyes of a professional.
I connected with a real estate agent friends used for their moves. We anticipate moving to a new region of the country so I’d like to start planning now. (In all probability we have 3-5 years before we can do this, so there is time.)
The biggest thing right now is the wife and I are not on the same page about what retirement looks like. The wife wants to be in the middle of the action…actually, I don’t know if she can actually retire without going absolutely bonkers from boredom.
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She has! However, we decided the large garden she was working on probably wasn't a good idea at this life stage. I've got new grass growing there. Plenty of landscaping besides that to keep us busy.
The meeting with the financial advisor is in the books. Things look super positive on the retirement front - may be able to retire earlier than expected. I'm so freaking pumped.
uitar99
Well-known member
Just turned 71 and still working.
Thats exactly why I am still working. Staying active, golfing, playing music with my friends. I still remember my name. Folks I know who have "retired" seem to all leave us to early.
So working with a financial advisor on retirement was new to me. Thought I'd share about the experience ... maybe it helps others.
I called our bank and asked if they offered any retirement services and/or if I could talk to a financial advisor about our retirement. I was able to schedule an appointment for about a week out. 30-60 minute meeting. I provided our household essentials - ages, goal retirement age, retirement goals, sources and amounts of retirement income, etc. We identified likely bigger expenses (eg, paying for a wedding). She helped us identify / determine a budget for travel, unexpected expenses, medical, etc. This gets plugged into a program and spits out a 30 page report. The report performs something called a Monte Carlo analysis, which essentially is an assessment of your finances given different levels of economic performance, from world disaster to normal market performance to exceptional performance. You get a Probability of Success score for each of the economic performance scenarios. This was the "high level" assessment, and it was free. I suspect this is a bit of a loss leader for the banks, as they also offer a "detail" analysis (mine would have been $1500) that includes more precision in the assessment and goes into strategies for making up revenue gaps, should any exist.
HIGHLY recommend the experience for everyone, especially the free version. It really paints a picture and lets you know where you stand. What you do from there is up to you, but at least you know. And (again) it is free.
I called our bank and asked if they offered any retirement services and/or if I could talk to a financial advisor about our retirement. I was able to schedule an appointment for about a week out. 30-60 minute meeting. I provided our household essentials - ages, goal retirement age, retirement goals, sources and amounts of retirement income, etc. We identified likely bigger expenses (eg, paying for a wedding). She helped us identify / determine a budget for travel, unexpected expenses, medical, etc. This gets plugged into a program and spits out a 30 page report. The report performs something called a Monte Carlo analysis, which essentially is an assessment of your finances given different levels of economic performance, from world disaster to normal market performance to exceptional performance. You get a Probability of Success score for each of the economic performance scenarios. This was the "high level" assessment, and it was free. I suspect this is a bit of a loss leader for the banks, as they also offer a "detail" analysis (mine would have been $1500) that includes more precision in the assessment and goes into strategies for making up revenue gaps, should any exist.
HIGHLY recommend the experience for everyone, especially the free version. It really paints a picture and lets you know where you stand. What you do from there is up to you, but at least you know. And (again) it is free.
I 2nd this. I recently did a Monte Carlo analysis through Schwab (also free). Let's you know where you stand.
gonyr
Well-known member
I have to work 4 more years to qualify for my full pension. There's a decent chance I retire at that point, and almost zero chance I work more than a few additional years. I like following the discussion of planning. Has anybody else tried Firecalc.com? It’s a website that seems to do something very similar to what @tequila4kapp did in his consultation with his bank.
Thanks for sharing. I recently completed a similar exercise with a wealth management firm. It started with a 20-25 minute discussion about the big picture. I shared my investing experience, estimated assets/debts, and provided general retirement thoughts about lifestyle.
The firm followed up with a secure portal link to share specific details such as address for home evaluation, mortgage details, salary/paystub, 401k funds, health savings account, stocks, bonds, insurance policies, property, and any additional investments.
We then met about 2 weeks later for 90 minutes. They presented a detailed plan with specific investment recommendations. I’ve been in asset accumulation since I started working as a teenager. Flipping the mental script to cash flow wasn’t difficult but it’s critical. Tax rates are a big part of the plan too. The team did a nice job of showing how they would reduce my tax liability.
They also presented a Monte Carlo scoring of the plans. They endorse scores over 80%. We started with a baseline monthly cash flow and it scored at 97%.
. We then created two more plans with higher monthly withdrawals. This was the best part of the meeting because it provided confidence based on data. We don’t have firm plans at the moment and I’d like to knock a couple of big ticket items off the list before pulling the rip cord.This service was provided free of charge. The company is a fiduciary. Quarterly fees are based on your assets under management. I’ve been a financial DIYer for most of my life but seriously thinking about handing them most of the keys. Their strategies and options go beyond my skill level. They just need to convince me how they protect against a 30-40% wipeout when fiat currencies fail.
I just don’t have a ton of time but an initial pass through … the web site is conceptually in the same space but not especially close to the same experience; also, the results I (quickly) got were substantially different between the two services.
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I didn't really pick up the game until I turned 50, so it was great being able to play golf, and/or practice daily, once I retired. I was also able to do a lot more hiking, and during the week the state park is much quieter.
When I was retiring, I visited a few financial advisors. Two of them instilled zero confidence in their ability to manage my life savings. Both of them only used the Monte Carlo model. Neither of them were working with my best interest at heart. I needed someone whose fiduciary responsibility was to me, not to a bank. I’m not a financial wizard, that’s what I was hiring. I liked the guy I chose because of all the different options his company had to choose from, not just putting everything in the stock market.
CTRosarian
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A year into retirement the big expenses are health insurance, a new Roth oil tank for house, and new brakes and front suspension for a ten year old car with 30k miles. Not much compared to how much I have saved for retirement.
Getting plenty of exercise working on the yard. Took down a big ugly tree limb with a pole saw. Started chopping it up with a bow saw.
Digging up the vines that are growing into the trees. Think I got them all, though there are some gnarly root systems I'll dig out later.
There are some floors in the house that I'd like to refinish. I've already done the master bedroom and a sun room a few years ago.. Maybe next year.
Getting plenty of exercise working on the yard. Took down a big ugly tree limb with a pole saw. Started chopping it up with a bow saw.
Digging up the vines that are growing into the trees. Think I got them all, though there are some gnarly root systems I'll dig out later.
There are some floors in the house that I'd like to refinish. I've already done the master bedroom and a sun room a few years ago.. Maybe next year.
Good to see you’ve slowed down to smell the roses. If you ever need to take it easy maybe you can get your old job back
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I’ve got at least another 15 years before I can even think about it. The math on my 401k and other retirement stuff says we should be able to do it and keep our lifestyle right around the time I’m 60. We’ll see. Doesn’t seem like it but my financial advisor says it will be possible.
I am 66 and will be retiring at the end of this year. Only reason I have stayed this long is to hit 10 year mark with current company and get post retirement benefits, the biggest one being out of country travel insurance. Am I ready… I think so.
I have been working full time since I was 18 and would look forward to living life with no prearranged schedule. No company pension for me, everything self funded so will have to cut back on a few things and just be a little smarter on discretionary spending.
Sadly, the days will be gone of buying new golf clubs it seems like annually, that will be one big expense that will go away.
I do look forward to having time to read a book and spend more time cycling and other outdoor activities beside golf. I really think the biggest challenge will be dealing with the drop in income and getting my wife to cut back on some needless spending.
I have been working full time since I was 18 and would look forward to living life with no prearranged schedule. No company pension for me, everything self funded so will have to cut back on a few things and just be a little smarter on discretionary spending.
Sadly, the days will be gone of buying new golf clubs it seems like annually, that will be one big expense that will go away.
I do look forward to having time to read a book and spend more time cycling and other outdoor activities beside golf. I really think the biggest challenge will be dealing with the drop in income and getting my wife to cut back on some needless spending.
With no , commitments in near or long term … Superannuation gets
-Maxing out contributions to threshold , Both in company’s and individual capacity.
Having completed planning and another check up next week , it looks tracking well .
Could actually retire now but building funds for more options and experiences. Also resting tax profile is better for me also .
Some know at work , when time frame may be , several have said your not going we need you lol , I said I could at my rate not your rates lol ….
-Maxing out contributions to threshold , Both in company’s and individual capacity.
Having completed planning and another check up next week , it looks tracking well .
Could actually retire now but building funds for more options and experiences. Also resting tax profile is better for me also .
Some know at work , when time frame may be , several have said your not going we need you lol , I said I could at my rate not your rates lol ….
CTRosarian
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I not only maxed out on the retirement savings account, I'd often contribute to my IRA and Roth accounts.
It was easy for me to work with my hands despite having a stroke because I went through my childhood again!
I learned how to build model rockets and airplanes. Some of the very same ones I built in the mid 1970s.
Totally regained the fine motion dexterity in my hands. Only better!
I used to accidentally cut myself with razor sharp knives but it was a different age and my parents didn't care.
I have much fewer accidents with tools than in my childhood.
I did a lot of things myself to save money. I installed my new range, enlarging the Corian cutout with a circular saw.
I have enough money that I don't have to do that any more, but I can do stuff like that so quickly that I'm not sure it is worth calling someone to do it for me!
The old range had a flakey control board for about five years. Instead of buying a new one I just cleaned the offending relay.
Of course I also fixed the washer and dryer so they have been running for over twenty years. Saved me the hassle of buying new ones!
Now in the transition between saving money and spending it! Golf should help with that!
It was easy for me to work with my hands despite having a stroke because I went through my childhood again!
I learned how to build model rockets and airplanes. Some of the very same ones I built in the mid 1970s.
Totally regained the fine motion dexterity in my hands. Only better!
I used to accidentally cut myself with razor sharp knives but it was a different age and my parents didn't care.
I have much fewer accidents with tools than in my childhood.
I did a lot of things myself to save money. I installed my new range, enlarging the Corian cutout with a circular saw.
I have enough money that I don't have to do that any more, but I can do stuff like that so quickly that I'm not sure it is worth calling someone to do it for me!
The old range had a flakey control board for about five years. Instead of buying a new one I just cleaned the offending relay.
Of course I also fixed the washer and dryer so they have been running for over twenty years. Saved me the hassle of buying new ones!
Now in the transition between saving money and spending it! Golf should help with that!
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Almost three years into retirement and loving it. Startedd Social Security a couple of years ago at 62. Working part time for my wife and almost 100% of my salary goes into a SEP account. We have not touched any of our IRAs or 401Ks so still socking away funds. Paying our own health insurance really stinks (sucks) but we have my wife's business pay for it. Next August I can go on medicare so that will help.
Retirement without a doubt was a great decision. I stay busy with the part time job, the gym, golf and hanging with the dogs. My job with my former employer just became to toxic of a culture to stay.
Retirement without a doubt was a great decision. I stay busy with the part time job, the gym, golf and hanging with the dogs. My job with my former employer just became to toxic of a culture to stay.
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Camjr
Active member
I'm about to turn 57, and my wife is presently 59. We're both targeting 65. If you're not working with a financial planner to make sure you're taking everything into account, you should be (most people probably are, but some don't). With retirement accounts, Social Security, a small pension from my company I've been with for 23 years that was vested before they went fully to a 401k, and my portion of my father's estate we will be in good shape. It's odd thinking about it when we've both worked since we were 12 yrs old. We currently take our RV out 10-12 times a year, and that will continue. Even though we have all this thought out and work with a professional to make sure we're on track, it's still a little strange to think about it inching closer and closer.
Cheers.
Cheers.
Acesteve
Well-known member
I turned in my retirement papers that set my date a few weeks ago. Odd feeling having always worked. I have always done my own planning and have degrees in Finance and a network of people who work in industry. About 5 years ago I started preparting for retirement by making all my big asset purchases without loans, and gettting the shape of my assets in a form that I have some liquidity. Still, I sought the help of a wealth manaement firm last year to look over my shoulder. Much more advanced models but same conclusion as my models. Where they have helped me is thinking about tax strategies in retirement and long term wealth transfer. I pay a fixed fee for annual review and we don't talk about them managing my money directly. For the review this year, I met with the analyst a few weeks ago and gave them in writing my plan and asked them to critique it and improve it in our formal review. Paying a bit for industry people to provide me a view point is well worth the money.
I turn 50 this year and it's something my wife and I have been actively thinking about. I am not sure what that magic number is but I am getting close. In an ideal world both my daughters head off to college and play soccer, we find a spot between both of them, provide some security for them, watch them play and still offer enough distance to give them the freedom.
It's tough because not working sounds fun, but I would imagine pretty quickly I would be itching to do something as I am not one to sit around.
It's tough because not working sounds fun, but I would imagine pretty quickly I would be itching to do something as I am not one to sit around.
I started talking to a financial advisor this year to plan out what my retirement path could be. As much as I'd like to retire early, I wanted to have someone smarter than me look at the numbers. It was helpful getting all the numbers in a row to see how my current set up would work out. Thankfully saving early has helped and retiring at 50 is still a possibility. Weird to think I could have single digit years left to work.
The biggest factor is making sure I have spending down correctly, but working part time to fill some time and add some extra income is definitely a possibility.
The biggest factor is making sure I have spending down correctly, but working part time to fill some time and add some extra income is definitely a possibility.
Acesteve
Well-known member
I saw something on TV that caught my attention. I was shaking my head, yes. It relates to how people talk about retirement. Camp 1 talks about having enough money to last. Camp 2 talks about making memories. The point being that you want to be in Camp 2 as it implies money is not a barrier nor is not working the goal but rather doing things and having fun. This implies plenty of money.
Age I don't recall being mentioned but I believe is a factor that needs to be balanced. Leave too early and with marginal savings and you might get bored. Leave to late and you may not have a body capable of fun even if you have the means.
for me the factor came down to my youngest going to college. the house is empty come september so allows my wife and i to create a new chapter
Age I don't recall being mentioned but I believe is a factor that needs to be balanced. Leave too early and with marginal savings and you might get bored. Leave to late and you may not have a body capable of fun even if you have the means.
for me the factor came down to my youngest going to college. the house is empty come september so allows my wife and i to create a new chapter