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Retirement, would love to hear from the guys that have pulled it off.

wash11

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I’m a good 15 years from retirement and feel like we have a realistic plan. I find this conversation coming up more and more among friends, and it’s interesting how varied the different programs are from couple to couple.

For those of you that have pulled it off and retired in style, what was your plan?

Company man for life, investing in the matched 401k? Rental income? Built and later sold a million-dollar business? Did you work with a professional money guy or do it on your own?

Did you find any surprises regarding budgeting (like, "shit, I really should have invested more") once retired?

Any advice for us guys approaching 50 and the final push?
 

4Waters

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Watching, I have 18 years to go and have a pension but always looking to supplement that some.
 
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LazyLavey

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I've found the more time I have on my hands, the more money I spend..

That said I can't speculate on your financials

Pension, 401k (or other), social security or any other income obviously has to be factored in to your spending habits and obligations

I would assume most of us inmates have a few hobbies and like to have fun which usually costs...

Whatever you do you're right... never too early to start planing
 

petie6464

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I'm there. Rentals are my meal plan. I still do work self employed a few times a month. I can't not be productive, plus it seems when you stop you usually die soon after. I'm versed in many trades so I'm always fixin'.

My brother's are all older and retired, mental decay as well as health issues have put a dark cloud on their retirement. I've always been a gym rat and keep on it still today, not BSing at the gym but working hard to keep my health and strength.

Money doesn't mean anything if your health and mind are gone.
 

fmo24

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I retired at 59 after 30 yrs at Northrop Grumman. Luckily with a pension and medical. Partner is 9 years younger but had 20 yrs at SCE so quit and rolled lump sum over. We sold house and have traveled in our motorhome for the past three years living on my pension and a small monthly draw from my 401. We have investment funds as well. Was a bit skinny the first year until we got a system down.
Surprisingly you can/will spend much less money. We don’t really eat out anymore and clothing budget is nothing compared to having to dress for corporate life.
I don’t even own long pants anymore. Buzz my hair with clippers so cheap out there as well
 

samsah33

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Quick and dirty rule is that you want to keep your age as a % cash, eg if you're 50, then think about 50% cash. You don't want your savings wiped out by the market, whether that market is stocks, real estate, etc... Also, you can make additional contributions to your 401(k) once you hit 50, these are catch-up contributions (extra $6500 per year I believe). Make sure you defer enough to get the max match at your company because that's free $. Monetize assets such as downsizing the house if realistic (but always stick with a nice boat...). The real variable in retirement will be healthcare costs, not sure where they will be in 15 years. Good luck!
 

Canuck 1

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I retired 6 years ago and find I work more hours now than I did when I actually got payed, Kids will do that to you...... Rental income is a good thing, but rentals that people can't wreck
 

Flatsix66

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I'm 56 and obsessed with "Early" retirement planning. They have a term for it, "FIRE", we want to do Fat Fire, which is retire early with a high/luxury budget in the early years so you can enjoy life while your still physically fit and able. Its all based on high savings and no debt. I'm in the window but will probably keep going while I'm still getting a big salary and vesting stock options. Plan is to build on 36 acres in north Prescott and build, sell SoCal ranch and bounce between Prescott and Havasu as the weather dictates.
 

rivermobster

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Two months in. So far, so good.
Bout the same...

I always put the max into my 401k. We fixed up our house to have Tons of equity there. Minimal debt. I'm pretty much done turning wrenches!

In 07 I started building websites and learning the internet business. Building sites, and maintain my business I can do from a nice comfy chair. When I get to lame to do this stuff, I'll need to be put out to pasture pretty much anyway, but for now, life is good. Been at the river since last Thursday...
 

welldigger00

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What is this retirement word you speak of? This is not an option for me. I’ve made bad financial, and business decisions in my life, and I spend money like a drunk sailor. The shits of it is, I’m still field service, and I realize my body will give out long before my bills do. My wife says that it’ll keep me alive. I say bring on the Covid, or a good old fashion heart attack. That way, my wife can finally live a life style that she deserves with the life insurance money, and I get that early retirement that you speak of!


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EarpRider

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I'm 56 and obsessed with "Early" retirement planning. They have a term for it, "FIRE", we want to do Fat Fire, which is retire early with a high/luxury budget in the early years so you can enjoy life while your still physically fit and able. Its all based on high savings and no debt. I'm in the window but will probably keep going while I'm still getting a big salary and vesting stock options. Plan is to build on 36 acres in north Prescott and build, sell SoCal ranch and bounce between Prescott and Havasu as the weather dictates.
That was our plan two years ago, but ended up keeping our small river front Parker house and getting a real house in Havasu, been here 1 year now. Wife and I are both born and raised Long Beach kids so cold weather isn't really our thing. So glad we went with Havasu over Prescott, love the town and a low of 49 in November is way better than 29.😁
Ohh, and retired at ago 50, 2 years ago, so far so good. But that was with Trump economy.
 

billperkins3@att.net

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Its a wise question you ask Joel.....and one is never too young to consider this.... I'm 61 and have been in & out of the corporate workforce over many years due to my good luck from family. I was able to purchase a couple small multi unit buildings on the coast over the last 30 years out west and live in between marriages in my favorite building. The key I think is to basically not outlive your money, right. In your case all that hard work you and your wife put into your working farm could become valued over the remaining years that you are physically able to work it. I understand that business takes much physical effort and who knows what each of you will encounter health wise. I've been floored at the amount of health issues experienced by my aging friends over 50. I noticed some of your children came into the fold so perhaps once you get things humming along and in the black they'll be an opportunity/ interest in expansion. At the very least you may have created something that someone in the near future will see great value in, right?! They'll always be a market for what you two have built... especially when cash is positive. Keep at it ole boy!
 

Spudsbud

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Retired almost 3 years.
Google top 20 dividend stocks. Read. Make your own decisions. Avoid commercial Real Estate REITS. Invest in stocks that pay on different months so you have monthly checks.
All this of course assuming you've saved enough during your working life.
 

jet496

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I'm 60 years old, own a successful business that keeps me active, own 3 homes, good stocks & thought this would be enough. Not (LOL). I'm training my 25 year old son to take the business over, so I need to stick around awhile. plus I just feel I need more, more, more.

When I have a clean $10 million maybe it'll happen. Also, I think I'd work harder staying home than at work. I bust my ass around here on the weekends looking forward to Mondays when I can take it easier.
 

pronstar

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I have a 15 year (at worst) plan:
One rental house per year, for 15 years.

Year 16, that first house has 15 years of appreciation and is paid off.

I can refi it to pull cash out...sell it, leverage it for another rental, or just sit on it depending on my situation.

Each subsequent year presents the same options.
And I will have contributed zero of my own money to this plan, because people my renters funded it.

And I can supercharge this by retaining more than one rental per year.


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4Waters

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Get a government job, wait 20 years. Retire like a hero.
20 years is different from agency to agency, Simi Valley Unified School District 2% per year for teachers and up so 20 years is 40% of your pay and maintenance workers get 1.5% per year so that would be 30% of your pay. I get 2.1% per year so I will see 42% of my pay after 20 years. LEO and firefighters typically get 2.3% per year.
 

PlanB

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The real bank is military, government job then a major defense company. I’ve seen guys pulling three pensions when they were done lol.
I have friends on this same path. They are doing very well.
 

LuauLounge

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I turned 70 last month, could retire tomorrow financially, mentally, can’t do it. My father retired at 50, WW2 Naval Flight Instructor, Civilian AF HR Chief. Hated his job, paid well, great benefits. He was my hero, supported everything I wanted to do. I came out with the life style, If I didn’t enjoy the work, I’d go do something else. Watching my college buddies who did the corporate route retire and die.
Life is a game, play it well, you may not get another chance.
 

Flatsix66

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for planning. How much do you need to live on per year? You either need income or draw on savings to maintain that spend level. SSA website can show what you will get paid based on your retirement age, depends on what you paid in and when you want to retire. Rough numbers I recall are $2k per month at 62 and $3k at 67 for social security per wage earner. Well, that sucks, can have much fun on $36k per year at best. So you need to save part of your income, how much? Golden rule is 4%. Meaning if you saved $1m you can draw $40k per year without your $1m going down. So if you want to run boats, toys and buy a new vehicle every once in a while you will need, IMHO, $3m saved or more - $120k + $36k. Minus taxes and a million other variables. Assuming everything is paid off and no debts. Makes public service pensions sound better all the time until the great tax payer revolt happens:).
 

mjc

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Retired almost 3 years ago. Did 401ks a couple annuities that are paying a monthly check every month until I kick the bucket. That and SS are doing me well so far. Still have IRA's left to go if I need more later. Paid everything but 1 car off before retiring, so no Bill's to worry about.
 

LHC Kirby

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4.5 years into retirement.... loving it.... my plan for first 3 years.... and first 5 years WENT OUT THE WINDOW....

First grandchild.... a granddaughter was born one year before retiring. Son and his wife work 9-5 M-F ... we got the chance to volunteer to watch her.. I don’t regret one minute. Just as things got easier....... grandson arrived... luckily we told them that we will watch the first two until first grade.... retirement gets back in gear.

With all that said, my pension is good. My 401 is doing great.... haven’t touched it.

Less money going out... and lots less stress.

I started planning 12 years before.... don’t regret that either.
 

jet496

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I have a 15 year (at worst) plan:
One rental house per year, for 15 years.

Year 16, that first house has 15 years of appreciation and is paid off.

I can refi it to pull cash out...sell it, leverage it for another rental, or just sit on it depending on my situation.

Each subsequent year presents the same options.
And I will have contributed zero of my own money to this plan, because people my renters funded it.

And I can supercharge this by retaining more than one rental per year.


Sent from my iPad using Tapatalk
What state are you in? CA has caught on that everybody wants to be a landlord & this rent control will be a Debbie downer as they continue to modify it. here

We have a niece & nephew buying one house a year in Colorado (probably have 6 by now). They only need to put 5% down if they live in it for a certain period of time so they're constantly moving. No kids & they enjoy it. It's a good plan.
 

pronstar

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What state are you in? CA has caught on that everybody wants to be a landlord & this rent control will be a Debbie downer as they continue to modify it. here

We have a niece & nephew buying one house a year in Colorado (probably have 6 by now). They only need to put 5% down if they live in it for a certain period of time so they're constantly moving. No kids & they enjoy it. It's a good plan.
DFW / Texas


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clark

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I'm 75 and been retired for a number of years, the only thing that I can add is stay busy, keep working at something, stay active for your mind as well as your body, in my opinion "IT AIN'T WHAT IT'S CRACKED UP TO BE" I would love to find a job and it has nothing to due with the $$$$$$ it has to do with self worth and staying active and ALIVE
 

twocents

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If you have a retirement goal age, that's fine. But whatever it is, make sure you are debt free at least three to five years before that age -- no home mortage, no car payments, no "toy" payments and above all, no credit card debt. In fact, tear up those credit cards and just have one debit card, it will help you stay on budget. Figure out what's your best strategy for taking social security -- grab it as soon as you're eligible, or wait a while and get a larger monthly check a little later. If you're in a position to work/be employed after taking social security that's great but there are income tax implications you need to be aware of. I'm not much of a retirement person, my dad worked full-time untl he was in his mid-80s and same for my grandfather who was a five-day a week pharmacist until he was 86.
 

wash11

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I've found the more time I have on my hands, the more money I spend..

That said I can't speculate on your financials

Pension, 401k (or other), social security or any other income obviously has to be factored in to your spending habits and obligations

I would assume most of us inmates have a few hobbies and like to have fun which usually costs...

Whatever you do you're right... never too early to start planing
Ours is pretty simple. Roth IRA's, rental income, SSI (if it is still around in 15 years), zero debt and keep a pretty low overhead. I've been self employed most of my life and enjoy the hustle. There are parts of the farm business that I really like and can easily carry on with into my golden years while moving away from the more labor intensive stuff.
 

wash11

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My brother's are all older and retired, mental decay as well as health issues have put a dark cloud on their retirement. I've always been a gym rat and keep on it still today, not BSing at the gym but working hard to keep my health and strength.

Money doesn't mean anything if your health and mind are gone.
I'm surprised this doesn't come up more. Honestly, I'd rather be broke and healthy than burn up my retirement going to the doctors and just trying not to die.
 

BHC Vic

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I’m 32 but i think about retirement a lot. I’m planning to be done by 55. I work like a mad man and recently changed a few things up. Houses should be paid off by 50 and I don’t have any other major debt. Hopefully I can follow the plan and enjoy retirement. I don’t believe in divorce and hate to even mention it but I’m watching the neighbors go through it. So much money thrown away at attorneys. Neither can afford the house alone if they have to buy out the other and they still have kids. 15 and 10. That could really mess up the retirement plan.
 

BHC Vic

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I retired in'05 then found I was under funded in '08 and went back to work.

I plan on dying on the job ...that reminds me, I'm late for work!
Sounds like my old buddy Dennis. I asked him two weeks ago when he was going to retire. He said na na na... I’m going to die on a stack of drywall. I said wow right on. He’s another victim of a horrible divorce and refuses to give his ex wife half his pension.
 

wash11

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Its a wise question you ask Joel.....and one is never too young to consider this.... I'm 61 and have been in & out of the corporate workforce over many years due to my good luck from family. I was able to purchase a couple small multi unit buildings on the coast over the last 30 years out west and live in between marriages in my favorite building. The key I think is to basically not outlive your money, right. In your case all that hard work you and your wife put into your working farm could become valued over the remaining years that you are physically able to work it. I understand that business takes much physical effort and who knows what each of you will encounter health wise. I've been floored at the amount of health issues experienced by my aging friends over 50. I noticed some of your children came into the fold so perhaps once you get things humming along and in the black they'll be an opportunity/ interest in expansion. At the very least you may have created something that someone in the near future will see great value in, right?! They'll always be a market for what you two have built... especially when cash is positive. Keep at it ole boy!
The off grid farm has always been part of the retirement plan for sure. Not only does it produce enough income to cover our meager bills, it also makes for inexpensive living (after such a large initial investment). Electric, water, sewer/trash, heating/air= zero dollars monthly. Our food budget is crazy low for how well we eat too. Our annual property tax bill is under $700 since all 50 acres are zoned agriculture.
At this point, we have the throttles pushed forward and work some crazy hours with the majority of the extra income going to retirement but have built it to be scalable in both directions since the infrastructure is complete and paid for.
Plus, farm work is the only thing guaranteed to keep me active, engaged and most likely healthy enough to still raise a little hell into my golden years.
 

wash11

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I’m 32 but i think about retirement a lot. I’m planning to be done by 55. I work like a mad man and recently changed a few things up. Houses should be paid off by 50 and I don’t have any other major debt. Hopefully I can follow the plan and enjoy retirement. I don’t believe in divorce and hate to even mention it but I’m watching the neighbors go through it. So much money thrown away at attorneys. Neither can afford the house alone if they have to buy out the other and they still have kids. 15 and 10. That could really mess up the retirement plan.
No joke Vic, had I been this serious about retirement at 32 my life would look completely different right now. Take it from a guy that has a million miles on the odometer, keep this retirement thing at the top of your list.
 

wash11

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If you have a retirement goal age, that's fine. But whatever it is, make sure you are debt free at least three to five years before that age -- no home mortage, no car payments, no "toy" payments and above all, no credit card debt. In fact, tear up those credit cards and just have one debit card, it will help you stay on budget.
I feel like this is the best/biggest part of our retirement plan- debt free.
In my old life, I was in the repossession industry for 25 years. The number of orders we serviced in retirement communities is surprising. Guys with 6 digit incomes for Boeing for 30 plus years, big retirement incomes- losing bass boats and side x sides because they can't seem to live off 16k per month being mortgaged to the hilt.
Or the worst, comfortable retirement on paper but one of them gets sick and needs long term care without enough insurance to cover it and start falling behind on payments. I can't even imagine.
 

fmo24

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To add to my original post since we live and travel full time in our motorhome picking a state for domicile was available. We chose Florida as there is no state income tax and vehicle registration is pennies compared to California.
We could not do this with a Mortgage and property taxes that we had in California
 

kurtis500

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And all that fat cash comes out of the working class’s paycheck
Depends. The pension checks come from the money you put in until it runs out. They hope you die before you tap in to the states contribution and then keep what you contributed. If you live a long time after retirement it comes from the states contributions.
 

golakers

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for planning. How much do you need to live on per year? You either need income or draw on savings to maintain that spend level. SSA website can show what you will get paid based on your retirement age, depends on what you paid in and when you want to retire. Rough numbers I recall are $2k per month at 62 and $3k at 67 for social security per wage earner. Well, that sucks, can have much fun on $36k per year at best. So you need to save part of your income, how much? Golden rule is 4%. Meaning if you saved $1m you can draw $40k per year without your $1m going down. So if you want to run boats, toys and buy a new vehicle every once in a while you will need, IMHO, $3m saved or more - $120k + $36k. Minus taxes and a million other variables. Assuming everything is paid off and no debts. Makes public service pensions sound better all the time until the great tax payer revolt happens:).
This!!

I feel the true question/answer is how much is enough???!!! When the dust settles, what is your $$$ number that you can live off without touching the principle. I always use $3m. I have friends that say I'm not close. They think $5-$6m, I THINK THEY ARE CRAZY!
 

monkeyswrench

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I was afraid to open this thread, but kind of glad I did. I see there are others that will work until they keel over...either by choice or necessity. Pops passed at 64, had been pulling a nice retirement for all of 3 years, iirc. Mom passed 5 years later at 63. She had retired about the same time as Pops, to go through cancer treatments. From about age 25, to about 35, I worked a lot. Roofing during days, fabricating at nights, or repairing cars or equipment. Had a big house in a really nice area, all the extra crap as well. Life goal was to retire at 55 and do nothing.
When Pops passed, I was too busy taking care of Mom to see the irony in how fast his retirement went. When Mom passed, it hit me...the harder I work to get ahead, makes no difference in how much time I'm given.
We downsized house, but upsized property. Paid of house at 36, and river pad at 38. Utilities and property taxes are the low bills, health insurance sucks, but that is the big one. Wife still teaches, for now, and that helps pay down the insurance. I do a lot of odds and ends with mechanical stuff still, but roofing can kiss my ass. I work a third as hard, and when I choose. The stress is pretty much gone (still have three in school, so still some)

In some ways, I am retired. In others, I still work? I don't have have anything really set for the future. I'm 43 now. Both my parents only made it another 20...tomorrow is promised no one. If I have to work passed 65, great! It means I made it to 65!
 
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