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Retirement exit strategy

radmoo

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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.
 

WinniWoman

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I always think about this myself. I am younger than you-will be 59 next month- Hubby is 61 and wants to retire, but no pensions. Another BIG issue is health insurance. For us, I think we are stuck for a long time or at least until we are forced out- which wouldn't be good either. UGH! :bawl:
 

vacationhopeful

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Look at your bills and IF you can live as accustomed without the income from your JOB plus the cost for YOUR health insurance (increasing a LOT every year).

Otherwise, develop a plan to shrink your costs before you DREAM any more.

Do NOT think of all the costs of NOT going to work as you will be busy with FUN times when NOT working (retirement is NOT free time ... it is fun time).
 

Jason245

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I have seen some retire with large nest eggs and enjoy their retirement. Others have retired with nest eggs they thought were enough and are now on living off social security checks and charity. .
Consult a fee based certified financial planner and have them help you.
 

csxjohn

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Near the end of my working days I found that I was making way more than I needed to live on. House and car paid off so only real estate taxes and health care to worry about.

I was contributing the max to my 401K and most of money went into savings. So with a 50% drop in pay we were still OK. That was almost 8 yrs ago and we still have not had to dip into the retirement accounts.

I was eligible for full benefits at 60 and my wife went at 62 with the mandatory reduction. We both have a small pension from our jobs plus the RR Retirement bennies.

Necessary costs went way down at retirement. Less money for food and gas, less wear and tear on cars, less money spent on clothing.

Everyone's situation is unique but the way people start going down with health issues as they get older we decided to quit working and enjoy the years that we still have left.
 

Icc5

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All Circumstances are Different

You really can't compare because we're all different. Here is how things worked for me. I talked to my boss in advance, she wanted me to stay if even part-time but I didn't want to. After 42 years of schedules, I wanted none.
I researched everything and found at 62 I get more with my pension and early SS then when working. I thought I was going to pay a lot for medical,dental etc. but am covered for a small amount because my wife is still working (she is 5 years younger) so it only cost me $80 per month. Once she retires I will be on Medicare and for $50 a month have supplemental plan that is almost same plan we now have but not dental.
For us it works because no bills and house is paid for. Figured out SS and it would take almost 8 years of early to equal reg. Another words at age 70 I break even (investing it so hopefully get ahead) instead of waiting until 66.
We also would be fine if wife retired now but she wants to wait until she gets tired of her work.
 

Sandy

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I just went through a similar process. I am now retired through a forced downsize at my job. It was definitely time and I am glad I made the change.

For me I am encouraged about all of the other things in life to pursue, even though my DH is very ill. I had been full time caregiving while working and the stress was taking its toll.

Most retirement books focus on the money aspects. There are many books on this subject. But if you want to read a different perspective, check out this book:

ow to Retire How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won't Get from Your Financial Advisor: http://www.amazon.com/How-Retire-Ha...-1&keywords=how+to+retire+happy+wild+and+free

The book is very encouraging as you begin to explore all of the other aspects of retiring without so much focus on the $$$. Of course $$$ is always an issue, but often we make more of it. I know I was scared to think that I did not have $_____ because so many financial folks have these projections that most of us will never meet. So take a different focus and see how you feel. I know I feel better.
 

stmartinfan

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Just a note that there are parttime jobs available. After a full time career in a different field, I now work parttime at a nonprofit. Pay is a fraction of what I made but I'm taking my corporate pension, too, and really feel the work is rewarding.

My Husband left a corporate career, too, and is now consulting with a small start up company, working parttime. He's kept up with his contacts at his old employers, so is also going to do a temporary assignment with one of them as well, because they know his expertise. Both of us have flexibility in schedule and do some work from home.

At the advise of a financial planner...and based on reading we've done...we are trying to hold off collecting Social Security until we are 70. Once we both reach full retirement age, one of us will file for SS and suspend, so that the other can collect spousal benefit until we get to age 70, when we will both start taking our own retirement benefits.

One factor in our planning is that we have a child with disabilities, so want to be sure some of our savings remain in a trust for her after we're gone. Without that concern, we would likely be using more of our savings now. We do love to travel, so part of the motivation for working PT is the extra money that allows us for overseas travel.
 

Passepartout

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I REALLY think you should invest in a couple of hours of a fee only planner's time. Let them run your numbers. Ask how much additional income from a part time job it would take to be mentally comfortable. Run numbers on health insurance plans- yours and his, because he has Medicare and you won't until 65. Check the pulse of any relatives who might name you in their will. Likewise check your kids' to be sure you won't be putting them up anytime soon or be asked to pay off their student loans.

After you have some firm numbers of how much you will have for income, and what the long term outlook is for expenses (moving, new car, travel), you can decide on a time frame to accomplish the deed of splitting from the dependence on your paycheck.

It really is just a hard numbers case. Wonderful as TUGgers are, none of our anecdotes are of one whit of value to you.

Good luck. Retirement is either an exercise in living life to the fullest, or the drudgery of wondering which bills to pay and which to leave til next month while the pantry gets emptier daily. Make yours the former.

Jim
 

geekette

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I think that if your current employer is inflexible that you should replace that job with PT that offers what you want. You gave them a chance. Move on. not like you're going to care about "spotty resume" ever again, so go seek happiness and fulfillment.

I second the non-profit idea as so far for me, the non-profits offer benefits much better than regular corporate. trick will be finding how many hours per week gets you to minimum benefits.

I plan to semi-retire when I think I have "enough" in $. I'm not sure what it looks like yet, but worst case is working contracts in my same field a few months at a time, best case is taking PT jobs that sound fun yet pay crap (in theory I won't need the money, but want the benefits still, or at least ability to contribute to Roth, requiring earned income).

If you can, try to luck into a place that will contribute to an HSA on your behalf. I changed jobs in July for the (hopefully) last 10 years of full time work and I went after benefits this time and scored the motherlode.

At whatever point my monthly dividend income is double my monthly expenses, I'm done working for good.
 
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WinniWoman

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I REALLY think you should invest in a couple of hours of a fee only planner's time. Let them run your numbers. Ask how much additional income from a part time job it would take to be mentally comfortable. Run numbers on health insurance plans- yours and his, because he has Medicare and you won't until 65. Check the pulse of any relatives who might name you in their will. Likewise check your kids' to be sure you won't be putting them up anytime soon or be asked to pay off their student loans.

After you have some firm numbers of how much you will have for income, and what the long term outlook is for expenses (moving, new car, travel), you can decide on a time frame to accomplish the deed of splitting from the dependence on your paycheck.

It really is just a hard numbers case. Wonderful as TUGgers are, none of our anecdotes are of one whit of value to you.

Good luck. Retirement is either an exercise in living life to the fullest, or the drudgery of wondering which bills to pay and which to leave til next month while the pantry gets emptier daily. Make yours the former.

Jim

We plan to do this in the next year or two. Good advice from Jim as usual. What kills us is school and property taxes in good ol' NYS. And will be hard to sell our home. Plus, where we want to live (NH) is not cheap either. A lot of thinking to do in the next few years- if we make it. Meanwhile, we have been sprucing up/remodeling our home while we are still working to enjoy it now and we will see what tomorrow brings. And- of course, we are taking our drive to timeshare trips. Saving the airfare trips for after the house is done if we so desire.
 
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ronparise

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I REALLY think you should invest in a couple of hours of a fee only planner's time. Let them run your numbers. Ask how much additional income from a part time job it would take to be mentally comfortable. Run numbers on health insurance plans- yours and his, because he has Medicare and you won't until 65. Check the pulse of any relatives who might name you in their will. Likewise check your kids' to be sure you won't be putting them up anytime soon or be asked to pay off their student loans.

After you have some firm numbers of how much you will have for income, and what the long term outlook is for expenses (moving, new car, travel), you can decide on a time frame to accomplish the deed of splitting from the dependence on your paycheck.

It really is just a hard numbers case. Wonderful as TUGgers are, none of our anecdotes are of one whit of value to you.

Good luck. Retirement is either an exercise in living life to the fullest, or the drudgery of wondering which bills to pay and which to leave til next month while the pantry gets emptier daily. Make yours the former.

Jim

All a financial planner can do is to ask the right questions
Basically, How much do you have? and how much do you need?

If the answer to the first question isnt more than the answer to the second then you cant quit working. But work doesn't have to be drudgery

That was exactly the position I was in at retirement age.(more expenses than income) So Im still working. But not at a J.O.B. (just over budget) with schedules and deadlines. I do my own thing, on my own schedule, and Im making more now than I ever have. (Im working right now, sitting next to the pool with a view of the canal trying to decide whether to take a nap or a boat ride later this afternoon
 
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Elan

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All a financial planner can do is to ask the right questions
Basically, How much do you have? and how much do you need?

A good financial planner will run a full Monte Carlo analysis and show you the probability of your retirement goals being met subject to several variables.
 

BJRSanDiego

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...I am wondering how others fared with similar major life change as well as change in income.

In terms of the major life change, I like to joke with people that "I went through a period of depression centered on what I was going to do... but that period only lasted about 3 or 4 minutes and stopped when I finished that cup of coffee." :hysterical: :rofl:

I've got a lot of hobbies and have become addicted to timesharing. Before I retired, I made a 3 page list of things that I might like to do in retirement. Things to do if I felt bored. I think that I am still somewhere on page 1 of the list. I believe that if a person is doing something and not having fun, they are either not approaching it right or need to change something. Also, I think that it is important for a retiree to stay physically and mentally active. For me the major life change was very positive and self-actualizing.

In terms of income, we had attended some retirement planning seminars before we took the plunge. My wife retired first. I had also read a number of on-line articles on various aspect of retirement. I also spent time with Yahoo's financial calculator doing various "what if" financial scenarios. Although some people are critical of it, the "4 % rule" is a good basic starting guide for estimating how much you can safely spend. If you're spending 4% OR LESS, you're probably in fairly safe territory. If you need to spend, say, 8 percent to live, then you are headed towards a risky zone.

One advice for new retirees is to avoid making a big expenditure when you retire - - like a $100K remodel of your house or a $200K purchase of a motor home, etc. A friend of mine almost spent 1/4 of his nest egg on a new motor home shortly after he retired :wall: (luckily he came to understand the riskiness of doing that before he spent that money). Those are big chunks of money that could otherwise be employed to provide income or a safety cushion.
 

silentg

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If your partner is 14 years older than you and he has a higher rate of Social Security you can collect half of his at age 62, if you want to wait til you are 65 to get Medicare then do that. See what your options are, you may make more money retiring than staying at work!
 

ronparise

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If your partner is 14 years older than you and he has a higher rate of Social Security you can collect half of his at age 62, if you want to wait til you are 65 to get Medicare then do that. See what your options are, you may make more money retiring than staying at work!

You have to wait until 65 to get medicare
 

DavidnRobin

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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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ronparise

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A good financial planner will run a full Monte Carlo analysis and show you the probability of your retirement goals being met subject to several variables.

exactly and the analysis will focus on your needs and wants against your income and savings. assuming a certain market return, inflation rate, and time to death.

I contend that a financial planner whether fee based or commissioned salesman (I used to do it as a commissioned salesman) are handicapped by their lack of a crystal ball. and there are too many variables. If you dont know what interest rates or inflation will be, How can you make a plan? or more to the point what are you planning for. Any plan to work has to be dynamic. you have to adjust that plan and your budget, every year.And a plan that is always changing is not a plan at all

An example. I planned to accumulate a million dollars by the time I reached retirement age. and I was on track to get there, But a million aint what it used to be. If the banks were paying 10% (like they were in 1985) a million would generate $100000 a year. so good plan. Unfortunately here I am at age 68 still working. I lost my million in the great recession and even it it was still intact the 2% that I could get at a bank wouldnt finance much of a lifestyle.

Good thing I have a better time working than most have on vacation
 

Elan

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exactly and the analysis will focus on your needs and wants against your income and savings. assuming a certain market return, inflation rate, and time to death.

I contend that a financial planner whether fee based or commissioned salesman (I used to do it as a commissioned salesman) are handicapped by their lack of a crystal ball. and there are too many variables. If you dont know what interest rates or inflation will be, How can you make a plan? or more to the point what are you planning for. Any plan to work has to be dynamic. you have to adjust that plan and your budget, every year.And a plan that is always changing is not a plan at all

An example. I planned to accumulate a million dollars by the time I reached retirement age. and I was on track to get there, But a million aint what it used to be. If the banks were paying 10% (like they were in 1985) a million would generate $100000 a year. so good plan. Unfortunately here I am at age 68 still working. I lost my million in the great recession and even it it was still intact the 2% that I could get at a bank wouldnt finance much of a lifestyle.

Good thing I have a better time working than most have on vacation

I agree. A Monte Carlo analysis is just that, an analysis. It's benefit is determining what percentage of the possible outcomes leave you with a comfortable retirement. If 90% of the outcomes leave you fat and happy, then you can probably pull the trigger. If that figure is less than 25%, you might want to work a while longer. Regardless, there are no guarantees.
 

am1

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Once my investments earn more than my income. Not sure if that will be cash or total return. I will consider "retiring" and just managing my investments.
 

ronparise

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Once my investments earn more than my income. Not sure if that will be cash or total return. I will consider "retiring" and just managing my investments.

I was almost ready, but my investments were mostly real estate in SW Florida...and then the crash
 

am1

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I was almost ready, but my investments were mostly real estate in SW Florida...and then the crash

I am trying to diversify and make sound investments. Also try to overshoot a as inflation and taxes can really change things.
 

DavidnRobin

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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?

Any suggestions for this Social Security question?

Fortunately, I am at >99% based on multiple retirement calculators - and our Spend rate is quite high (but, normal for SF Bay Area). I have been saving the maximum for retirement for 20+ years (apparently unlike most in my age cohort) - and get an excellent 401k match by my company (~10% of salary/bonus). Also, investing pretty well considering the ups/downs of the Markets over that period (w/ low management fees). Luckily our company stock was protected during the 2009 recession, and we were heavily invested in our company (ESP and NQSOs).
btw - equity investments have almost doubled since the low point in 2009.
 

VegasBella

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I think that if your current employer is inflexible that you should replace that job with PT that offers what you want. You gave them a chance. Move on. not like you're going to care about "spotty resume" ever again, so go seek happiness and fulfillment.
I agree.
The only reason to keep working that job and/or full time is if you really can't afford to retire yet. So figure out if you can lose half or more of your income and then if so start looking for other job options.
 

spirits

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This is what I did

I am 64 and my Dh is almost 73. He retired from the trades at 50 due to lack of work...but worked part time doing odd jobs till he was 65. I was a substitute teacher for many years, went back 1/2 time 20 years ago, worked full time for 10 years but went to 1/2 time about 5 years ago instead of retiring. At first I was not sure if I would like part time....the expenses of work are full time, but the paycheck is not. I thought I would only do that for a year or two and then retire.
But what I found was, I really liked working 1/2 time.....I have 1/2 the pressure but still have benefits and a professional salary (but only 1/2 a professional salary). I am not exhausted in June and if I happen to get "one of those classes" I only have a couple more hours to put in and then I can go relax and enjoy my other life. Plus I really love my students.
If it were up to me, I would work 1/2 time for the rest of my life... I do not go south for the winter...have to work...many of my friends are retired and so my social group has changed since they are often not around in the winter.
My marriage is better....we can get away from each other for a bit...I find that I like having some structure in my life......
All I know is that the future looks like a very difficult time for the generations coming up now.....it seems that us baby boomers benefited from a post war boom that is coming to a close. We might have to help out our children more since their employment prospects are not as bright as ours were.
I find it hard to predict what will happen tomorrow....and so I find it almost impossible to predict the next 30 years....having some income coming in is my best bet to hedge against future hard time:rolleyes:
 
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