Retirement exit strategy

That is what I said in my post. She can retire at 62 get half of her husband's social security, but has to wait to be 65 to be eligible for Medicare. She would have to get medical insurance coverage for 3 more years!

My Retirement

Retired. My wife then says she wants to enclose the patio. That room took 9 months for completion by the contractor because he had other jobs at the same time.
About a month before he finished my wife tells me my daughter,son n law, and granddaughter can't make it where they are living so they are going to live with us for a short time. That was almost two years ago and things have got worse. Housing costs have gone up and now I don't know if they ever can afford to leave.
Luckily we have a four bedroom house and they are at work most of the day. Granddaughter is in 2nd grade so it means I watch her a lot.
When I retired I told my wife I wanted time for myself and to be on my own schedule. Still waiting for that to happen.
We are in California and have always watched our water usage. Now, because of the drought we are being told we have to cut another 30%. This is with the house going from two people to five. This ought to really become interesting.

radmoo said:

Where else to turn but TUGGERS? I am trying to downsize job but current employer is in 1950s mindset with zero opportunity for flex work schedule and/ or tele commute. Hubby is 14 years my senior and is retired. I turn 63 in 3 weeks. I am willing to work p/t but not looking to be tied to an employer's strict schedule. I do not really want to discuss specific finances here but I am wondering how others fared with similar major life change as well as change in income.

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Sorry to be so blunt... Your employer is not obligated to cater to your schedule. I would advise you to cut yourself loose from your current job, and look for an opportunity that suits your lifestyle.

I would suggest selling and moving somewhere more affordable. But everyone makes choices.

Icc5 said:

Retired. My wife then says she wants to enclose the patio. That room took 9 months for completion by the contractor because he had other jobs at the same time.
About a month before he finished my wife tells me my daughter,son n law, and granddaughter can't make it where they are living so they are going to live with us for a short time. That was almost two years ago and things have got worse. Housing costs have gone up and now I don't know if they ever can afford to leave.
Luckily we have a four bedroom house and they are at work most of the day. Granddaughter is in 2nd grade so it means I watch her a lot.
When I retired I told my wife I wanted time for myself and to be on my own schedule. Still waiting for that to happen.
We are in California and have always watched our water usage. Now, because of the drought we are being told we have to cut another 30%. This is with the house going from two people to five. This ought to really become interesting.

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am1 said:

I would suggest selling and moving somewhere more affordable. But everyone makes choices.

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That is exactly what I thought too ...

As for the kids roosting ... rent a 2 bdr age restricted condo .... use the water issue as YOUR concern. It will only get worse .... IMHO.

vacationhopeful said:

That is exactly what I thought too ...

As for the kids roosting ... rent a 2 bdr age restricted condo .... use the water issue as YOUR concern. It will only get worse .... IMHO.

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Yes big houses for 2 people are part of the reason why restrictions are needed in California and house prices are as high as they are.

Wow, I surely did not expect so many replies. Here are more pieces:
We work with an AMAZING financial planner and she is KEY piece of the equation
I have health insurance through Veterans Benefits
I fully intend to pursue p/t employment

The moving piece is trickier. We own a lovely home near our friends/support network. We have a mortgage at a low rate and rent in this area would cost more than our mortgage. All our grandkids live out of state, 2 in Northern VA and 2 in Silicon Valley. We need space when they visit. As much as we might prefer to live closer to them , SF area is unaffordable and we are not sure about VA for reasons I would rather not delve into. As to moving somewhere more affordable, that would still leave us with having to travel to viisit both sets of grandkids and would take us away from friends/support network.

Sorry, should have explained.

I'm not worried about the money issues. I get a pension after working for the same place for 42 years and we own our house outright (3rd house as we moved up each time from timing of Real Estate Market).
No, for me it is the freedom I retired for and the unexpected circumstances. All the more reasons for enjoying the timeshares. It was great in the start of retirement to go pick up our granddaughter and take her with us. Totally different when I have to become her parent too. Makes for a different relationship. Not too happy with our daughter or son n law.

DavidnRobin said:

I would love to understand the potential benefit of one spouse (lower SS benefit) collecting half of the other spouse' SS (higher benefit) at 62yr. I am preparing for retirement (at 60yr in 2 years), and this potentially applies to us (me: 58yr; spouse: 57yr). Neither will be working (for $) after 60yr. We have already hit the income needed based on the '4% Rule' - so gravy from here.
Any good resource to simplify this?

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Be careful with the strategy of collecting half of a spouse's benefit if you both have work histories and each of you could get more collecting off your own earning record. If you start collecting half of a spouse's benefit before your own full retirement age, Social Security will lock you into the decision and not allow you to collect on your own benefit.

There is a newly published book "Get What's Yours" that covers all the different options and pitfalls about choosing when to collect your benefit. I just finished it and found some good pieces of info. I had seen it recommended by several good media sources, so we got a copy to read.

stmartinfan said:

Be careful with the strategy of collecting half of a spouse's benefit if you both have work histories and each of you could get more collecting off your own earning record. If you start collecting half of a spouse's benefit before your own full retirement age, Social Security will lock you into the decision and not allow you to collect on your own benefit.

There is a newly published book "Get What's Yours" that covers all the different options and pitfalls about choosing when to collect your benefit. I just finished it and found some good pieces of info. I had seen it recommended by several good media sources, so we got a copy to read.

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Can you collct your own early at 62 and then switch to 50 percent of spouse at full retirement if latter is higher by then?

stmartinfan said:

Be careful with the strategy of collecting half of a spouse's benefit if you both have work histories and each of you could get more collecting off your own earning record. If you start collecting half of a spouse's benefit before your own full retirement age, Social Security will lock you into the decision and not allow you to collect on your own benefit.

There is a newly published book "Get What's Yours" that covers all the different options and pitfalls about choosing when to collect your benefit. I just finished it and found some good pieces of info. I had seen it recommended by several good media sources, so we got a copy to read.

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Excellent - thanks. I will take a look. I know it is not straight-forward, and always risks and unknowns (years remaining - the big ?).
SS is a few years away, but starting to plan for the great escape. Time is flying by.
I have always been a DIY for finances, and thinking of a fee-only FP. I could never see paying someone 1.5% to handle may money to make 6% (for example) - a 25% rake? that is tough.

Icc5 said:

Retired. My wife then says she wants to enclose the patio. That room took 9 months for completion by the contractor because he had other jobs at the same time.
About a month before he finished my wife tells me my daughter,son n law, and granddaughter can't make it where they are living so they are going to live with us for a short time. That was almost two years ago and things have got worse. Housing costs have gone up and now I don't know if they ever can afford to leave.
Luckily we have a four bedroom house and they are at work most of the day. Granddaughter is in 2nd grade so it means I watch her a lot.
When I retired I told my wife I wanted time for myself and to be on my own schedule. Still waiting for that to happen.
We are in California and have always watched our water usage. Now, because of the drought we are being told we have to cut another 30%. This is with the house going from two people to five. This ought to really become interesting.

Click to expand...

You remind me of a close friend of ours. He took early retirement just over a year ago and only a month later, his daughter and two kids moved into his basement while her DH was supposedly trying to get a job locally from several states away. Well, that never happened and it appears the daughter has finally agreed to move back with DH in another month. Meanwhile, our friend has given up his first year of retirement to basically babysit her kids while she was working.

Go to Early Retirement Forum to read up on various strategies (do searches for topics)--some smart minds (and some very frugal) over there.

There are many free online retirement financial calculators out there you should try, and you don't need a FA to do this.

MuranoJo said:

You remind me of a close friend of ours. He took early retirement just over a year ago and only a month later, his daughter and two kids moved into his basement while her DH was supposedly trying to get a job locally from several states away. Well, that never happened and it appears the daughter has finally agreed to move back with DH in another month. Meanwhile, our friend has given up his first year of retirement to basically babysit her kids while she was working.

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Young adults today do NOT understand boundaries .... they do know how to FILL a vacuum - for their benefit. Raising kids is a JOB and when working, we all KNOW that money belongs to the person who name is on the paycheck ... not for things like babysitting or rent or utilities, but clothes, dining out, travel and social functions.

In my area, it is common NOW in eviction court (that is Tenant/Landlord court), to have at least one set of parents every session (4 sessions per MONTH) evicting their mooching 20+ yo roosting offspring. And it is everyday to see adults who have custody of their grandchildren in the school system. And it is the middle class areas mostly - mostly both parents working - who the police told them they needed to get a lawyer "to throw the kid out". And it does not end there - successful college graduates (those are ones with jobs) acquire their own set of moochers (friends, dates, spouses) "couch riding".

vacationhopeful said:

Young adults today do NOT understand boundaries .... they do know how to FILL a vacuum - for their benefit. Raising kids is a JOB and when working, we all KNOW that money belongs to the person who name is on the paycheck ... not for things like babysitting or rent or utilities, but clothes, dining out, travel and social functions.

In my area, it is common NOW in eviction court (that is Tenant/Landlord court), to have at least one set of parents every session (4 sessions per MONTH) evicting their mooching 20+ yo roosting offspring. And it is everyday to see adults who have custody of their grandchildren in the school system. And it is the middle class areas mostly - mostly both parents working - who the police told them they needed to get a lawyer "to throw the kid out". And it does not end there - successful college graduates (those are ones with jobs) acquire their own set of moochers (friends, dates, spouses) "couch riding".

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That is a very bold position to take. given a number of factors, including the baby boomers general under saving for retirement, one would expect multi generational housing to increase in the next 10 to 20 years. This type of attitude will be interesting to see played out as many boomers in their 80s find themselves without sufficient funds to maintain their lifestyle and without family willing to take them in.

As a relevant aside, I read today (reportedly right from the SSA) a statement claiming that 11,000 people in the U.S. will turn 65 every day for the next 15 years.
Quite a stunning observation and statistic --- at least to me.

Social Security was of course never designed and never intended to be anyone's "retirement program", but I am inclined to believe that indisputable historical fact might somehow be entirely lost upon a large segment of our population. I guess time will tell.

theo said:

As a relevant aside, I read today (reportedly right from the SSA) a statement claiming that 11,000 people in the U.S. will turn 65 every day for the next 15 years.
Quite a stunning observation and statistic --- at least to me.

Social Security was of course never designed and never intended to be anyone's "retirement program", but I am inclined to believe that indisputable historical fact might somehow be entirely lost upon a large segment of our population. I guess time will tell.

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Social security was also not supposed to be received until you were older than the life expectancy.

Take a look at the life expectancy of an american when social security began, and the date of eligibility of payments.

Seems social security needs an overhaul. Have it start at the same time for everyone. Maybe increase that from 65 years gradually to 70.

am1 said:

Seems social security needs an overhaul. Have it start at the same time for everyone. Maybe increase that from 65 years gradually to 70.

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It is already age 67 for those of us not older than dirt. But I agree -- with people living longer, increasing the SS full benefits age is probably one of the better ways to keep the system healthy.

Kurt

Jason245 said:

Social security was also not supposed to be received until you were older than the life expectancy.

Take a look at the life expectancy of an american when social security began, and the date of eligibility of payments.

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The average life expectancy for someone at age 65 has only risen by a few years since the date Social security began.

ace2000 said:

The average life expectancy for someone at age 65 has only risen by a few years since the date Social security began.

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The first social security check went out in 1940:

http://www.ssa.gov/history/imf.html

The life expectancy of someone born in 1940 was 61 for Males and 65 for Females:

http://demog.berkeley.edu/~andrew/1918/figure2.html

Life expectancy of someone born in 1955 was 67 for Males and 72 for Females.

That is more than a few years......

Jason245 said:

That is a very bold position to take. given a number of factors, including the baby boomers general under saving for retirement, one would expect multi generational housing to increase in the next 10 to 20 years. This type of attitude will be interesting to see played out as many boomers in their 80s find themselves without sufficient funds to maintain their lifestyle and without family willing to take them in.

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There are many MORE and BIGGER issues than just a mooching 20-25yo in their house. It ALWAYS involves a big thieving drug issue, threats and raging fits & hitting, no sleeping at night, cars being taken (mom said I could borrow the car; dad not home -- his word against mom's word), legal address, tenants do NOT have to pay rent to get occupancy rights (squatters rights), etc.

You can NOT JUST change the locks after throwing their stuff in trash bags in the front yard ... you have to legally evict them.

And by the time the boomer parents are 80, those kids mostly will either be in prison or dead from overdoses, car crashes or murdered.

And as for Baby Boomers not having funds for retirement .... those families' savings get drained by their thieving kids, legal fees, therapy sessions, lost jobs (who want an employee with an out of control stalker calling and showing up in office OR no sleep) and multiple moves in RUNNING from their kid.

I have experience with a stalking ex-bf .... think 5 active years and 25+ years of flashbacks incidents .... I think my record was 4 household moves in one year. He and his family thought I should take care of him; my ex-neighbors & ex-friends just thought he was sincere in his love; the state troopers thought he was calm and rational (until he had his hands around my neck). So they trailed him out of town; at least 3 sets of cops told me to MOVE as they were tired of all this crap at MY house (I got gold plated service for a month to get the HELL out of the one town), got no service from the courts as they consider it a domestic matter (I was still alive). And yes, I lost a great job due to his visits, hundreds of phone calls, and my lack of sleep & concentration besides his standing on the sidewalk asking everyone if I was still in the office while begging for change.

"BOLD POSITION" .... experienced position in reality.

Expect MORE rent assisted complexes with senior age restrictions, strong rule enforcement and security guards.

Multigenerational housing --- you ever lived with your IN-LAWs or even your parents for more than 2 weeks? Sounds good on paper; maybe workable until dementia develops or cancer or someone dies or a nursing home wants to see whose funds brought the house or someone gets a divorce & wants their share.

PigsDad said:

It is already age 67 for those of us not older than dirt. But I agree -- with people living longer, increasing the SS full benefits age is probably one of the better ways to keep the system healthy.

Kurt

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As well as means testing. I think both will be part of the equation for fixing SS in the near future. It'll be interesting to see if the current administration will attempt to tackle this one.

ace2000 said:

As well as means testing. I think both will be part of the equation for fixing SS in the near future. It'll be interesting to see if the current administration will attempt to tackle this one.

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Do you have a stratagy to convince the baby boomers to not be eligible for social security until they reach full retirement age ? If so I would love for you to share.

Jason245 said:

The first social security check went out in 1940:

http://www.ssa.gov/history/imf.html

The life expectancy of someone born in 1940 was 61 for Males and 65 for Females:

http://demog.berkeley.edu/~andrew/1918/figure2.html

Life expectancy of someone born in 1955 was 67 for Males and 72 for Females.

That is more than a few years......

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This is an example of the misinformation that gets posted out there regarding SS. The life expectancy for someone "born" has nothing to do with the life expectancy at age 65. Age 65 (or 67) is what matters in this equation. You have to leave infant mortality, which has significantly decreased, out of the discussion. It has nothing to do with Social Security.