Well, it seems like a quaint idea. But, like looking at the ads for the 600SL Mercedes, or the latest innovative features of the new Ocean Alexander, something I can only dream about.
After leaving a promising, and lucrative position with a construction company to go "W.O.W." when I was younger, and now going through a divorce, about the only retirement option I'm considering is the Ernest Hemingway plan. I used to think that was awful, but lately I'm beginning to see the wisdom in it...
Working for the county, you must be getting the Arizona retirement program instead of social security. Unfortunately I worked for the State of Ohio only 9 years, and bought back service credits for 5 years, before retiring. I also get social security, but it is a paltry sum.
My suggestion would be to try to do both for a good long while, that is, work and invest and have a dandy vacation once or twice a year. I retired too soon, and get social security. If you retire before 65 and get social security, you can only earn $10,960/year until you turn 65. I am working part time demonstrating food for Costco and I enjoy it, but it pays a little over half what I was earning full time.
I also get OPERS retirement benefits, which are probably similar to those of Arizona. Before you retire, you need to be fully informed on exactly what your benefits will be, and that includes the insurance benefits. Go over each plan offered in minute detail. If you need to, get some help from their people before you decide. Don't let anyone rush you into a plan, or persuade you to sign up for just because your family physician is listed.
If you have an investment counselor, that would be a place to start, once you are fully informed.
Building things and learning about things are my life. I've been clear with my wife and daughter that when the day comes that I can't work, I'll most likely find some way to end my life. Ideally, as I get older, I will transition from being involved in the day-to-day responsibilities of running my company to being able to work full-time (or part-time) on projects that are particularly interesting.
My best friend is dealing with losing her mother to brain and lung cancer. She's been dealing with it for the last 6 months, and now she is in hospice about to leave this world shortly. My heart goes out to my friend as she lost her father less than 10 years ago. Both parents were way too young to leave this world.
My friend called me last night to talk about her mom and other things going on in her life. My friend is going through hard financial times. She bought too much house in California and is now foreclosing and claiming bankruptcy. While I don't share my friend's same ideas and opinions about finances, a comment she shared from her mother really struck a chord with me.
Lat year before her mother got cancer, she went on a trip to Las Vegas with her mom. They became "victim" to a time share meeting. My friend decided to buy one. Her mom, who was usually extremely frugal about money, told her she thought it was a wonderful idea. Her mom had just retired. She told her daughter that she had spent her life saving and preparing for her retirement all her life, and now she wished she had taken more time and money to enjoy her life before retirement.
I've been contributing to the Arizona Retirement System without my freedom of will. I am a county worker, and it is mandatory that they take money out of your check to go toward that retirement system. Many of my co-workers are elated to work at the county for the rest of their lives and retire. Not me. I want more out of life. I don't want to be a county worker the rest of my life. In addition to my ARS contributions, I contribute $250 a month toward my own retirement plan. I am starting late in life, and I want to be sure I'm not living on welfare when I retire. Only God knows if there will be any social security left by that time.
In doing all of this necesary saving for my future, I have thought that it seems F'd up to save money to live well and travel when you might not be your best healthwise. Why am I not enjoying my life while I am still fairly young? I've enjoyed trips to my most favorite vacation place--the Mexican Carribean. I have plans for more, but they sure don't happen as much as I would like.
Am I foolish to think I should enjoy life now and save a little for later? Without winning the lottery, I don't really have unlimited income as most americans don't.
My dad retired early in his life. He saved and invested a lot of money. He was very frugal while I was growing up. My parents do very well financially, but they stay home most of the time and take an occasional trip. It's not necessarily my idea of enjoying an early retirement. They are not ill, but I think my dad has comfort knowing he's done a good job saving. Now what?
What are your thoughts for retirement?
I highlighted two things in your post.
First, your question... are you foolish to... ONLY you can answer that. HOW you decide also can only be determined by you. However, I would pose a couple of questions for you to consider...
In each scenario you envision, there will be numerous variables. You will NOT be able to control all of them.
FOR each scenario you envision, are there possibilities, or PROBABILITIES that certain things could happen that would cause you to regret having made that decision? Again, ONLY you can answer those.
Second, 30 years ago, when I was shortly out of the USAF, I took a job with what then was a major telecommunications company. I was "lucky" enough to get a job doing what I had been trained to do in the military... Most of my co-workers were as old then as I am now. At THAT time, THEY were talking about the "imminent demise" of social security. THIRTY years ago.
Much has changed since then. I left that job because of TWI (wow/corpse). However, even had I stayed, THAT job became obsolete with the nearly unimaginable (then) progress/new developments in communications technology... BUT social security remains. And unless Americans find a "universal" alternative, social security will survive US.
btw, things may or may not be as bad for your friend as you imagine now because of her current financial difficulties... they might be, but things could turn for her in ways she might now not even realize are possible. And I'm not talking about winning the lottery.
I faced similar difficulties a couple of years ago. I HAD to file bankruptcy in order to NOT lose my house to the mortgage holder.
I was able to defer any further serious action until I could sell the house for enough money to pay off the liens (two mortgages) and STILL buy a manufactured home OUTRIGHT in a retirement community... and I'm still two years younger than the normal age limit.
I AM retired. I don't travel much, but DO stay active, including volunteering at a child crisis shelter. For me, I have NO regrets about choices I've been able, or had to make.
Yet, I can't help but think that had I been able to start saving for retirement at a younger age, things would have been less stressful during the transition to retirement for me.
Enjoy Your Life Now or Later? I can give you no advice on that. It is a decision you have to make. I am 52. I went with the play now pay later plan. though I did nothing great I did accomplish some of the things I set out to do that at one point were just impossible daydreams of a lost little boy. I had plenty of perfect opportunities to have that white pickett fence life. just could not find love at the time, or maybe I did not know how to reconize it. I guess I was one of those dreamer types who wind up being a loner and sort of a drifter. I did do well but never took into account the years I thought I would never see, I'm well into those years now. I call them bonus time. I have few regrets. In the eyes of others I could have done better. That is according to their standards of life which is something yes I could have done but I chose to pursue the things I wanted to do in life. Well once again nothing great just the fact that I did accomplish some of the things I set out to do, I am content with the life I have. sure I still would like to do better and still may be able to. I do not need a mercedes, I do need a vehicle. A house would be nice, an apartment will do. I'll get right to the point. If you truly believe in God and Jesus Christ, trust them, believe they will be with you no matter your decision. Your needs will always be met and some of your wants, just maybe not to your expectations. right now as the penalties for drifting and not staying anywhere long enought to collect a pension for except from the type of work I am doing now, with SS should it still be there, a small pension check, A little annuity and maybe a part time job I will survive alright. That is okay with me I had the chance to live outside the Box, good times and bad times. I will share this with you. My ultimite goal is to be able to support myself with songs and poems I have written. I had to put that goal aside as I have to put a plan together for the days I'll never see, just in case I do, I still enjoy life now, how can I enjoy it later with all that time to wish I had done the things I have the opportunity to do now or have already done. I hope this makes sense. It not a topic I can provide a good answear to as the end results are unknown to me at this time, Just my thoughts in relation too me.
Rocky's on my page. Play some now but plan a lot now for later.
It's a balance, scales tipped to retirement, "sunset years", when you're an old fart and hopefully have the physical and mental capacity to still know when to and not to.
Smaller amounts of money set aside and allowed to ferment longer does better, generally, than large amounts set aside for less time. Depends on how it's invested of course but you can have much lower risk over the long term, so your money's saferto grow. Pretty basic stuff.
I really only started looking at all of this about 18 years ago. As recently as this year I had to get advice from our accountant, who repeated the "magic words" of financial planning - you can only plan for what you know, not what you don't. Plan for possiblities, but don't base all your planning on them. Like S.S. It may not be there when I need it, true. But as of now, I would plan for it to be there. Health Care - I made a decision to choose towards a decison that would guarantee (as much as can be known now) to have health care in place for me and dependents for life. Given my overall circumstances it seemed a wise way to invest x amount of income, now and later.
If your best laid plan would include you having the mental and physical capacity to enjoy life until it's last day, act accordingly so as to be able to do that as best you can now.
I wouldn't blow every penny on life now, but I wouldn't deny myself completely now to do that, if I had a choice, is what I'm getting at. If there was no choice, I'd be frugal and defer spending now, so as to give what income I do have as much time over the long haul to work, whether it be to pay bills, eat, or save.
The real question is - how do you want to live life, not how others do or have. Once your values are clear, it's easier to make decisions.
I always thought that retirement wa wasted on the old. Better to party until you're 35 and then work until you die!
As that is not really an option, however, one must consider a lot of variables:
How long am I likely to live?
How long will my wife live?
(Retiring with $50,000 is fine if you expect to live a year!)
What is the likelihood of a debilitating illness? (family history, etc.)
Am I out of debt? If not, how will I manage what I have?
I have a reasonable amount in my 401K, some Social Security due me, some liquid (or liquefiable) assets, and no debt.
But I wouldn't want to retire--yet.
George
Ha! And here I've been saying for a long time now... YOUTH is wasted on the young!
Btw, George, I think the BEST part of your plan is the freedom from debt!
I have an extremely modest existence... but being debt free (including being done with the whole 'mortgage ' thing) makes ALL the difference in the world.
To me it doesn't seem like this has to be an either or question. Why not enjoy life now and in retirement? I live frugally, and find ways to enjoy life on a budget. When I vacation, I go with family or friends, get good deals and pay cash for everything. There are a few places I am still planning on going, but will plan and save well in advance to do them. I have saved religiously for retirement since I was thirty and don't have concerns about retirement whether or not social security is around.
A big key for me is making my own decisions about what I want and need. Many of my coworkers live in homes worth half a million or more in prestigious zip codes, drive Lexus, BMWs, Mercedes, etc. I live in a working class neighborhood, in my little ramber/ranch type home built in 1950s that I have been remodeling myself over the last few years. It is not glamorous, but it is quaint and suits me. (and my pets or furkids as I like to call them) It is 75% paid for and will be fully paid off when I am 55. I drive a Toyota Corolla that is paid for. I use coupons at the grocery store, restaurants, for haircuts, and anything else that offers a coupon. I have budgets on Excel spreadsheets for at least the next six months and don't spend money without checking my spreadsheet.
Yes, my friends tease me because I am very anal about money, saving, etc. Occasionally my $9.99 haircut is less than perfect, but it just matches my many other imperfections.
I'll probably live the same way in retirement as I live now - spend money on what's important to me, cut corners on what is not, and enjoy the heck out of life.
I think it does boil down to what others have already said about deciding for yourself.
And I just hope this insomnia passes.....since I am writing this at 2:20 am.....
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George Aar
"What are your thoughts for retirement?"
Well, it seems like a quaint idea. But, like looking at the ads for the 600SL Mercedes, or the latest innovative features of the new Ocean Alexander, something I can only dream about.
After leaving a promising, and lucrative position with a construction company to go "W.O.W." when I was younger, and now going through a divorce, about the only retirement option I'm considering is the Ernest Hemingway plan. I used to think that was awful, but lately I'm beginning to see the wisdom in it...
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polar bear
I have aaked a lot of questions about this subject
I have some friends who have just retired and some who have been retired for many years.
Most say "retire as early as you can."
You have to decide however how much you are going to need upon retirement which requires some good planning.
Keep things simple, don't go into too much debt and pay them off before you retire.
Then you just have to figure out your monthly bills and make sure you have that.
If you plan a few good investmenst that will give you a small return for extras like vacations etc.
There are many ways to travel inexpensively, for instance a trailer or boat where you can live on them while you travel.
Whatever you do make sure you are happy with where you are at and where you will be living on a fixed income.
Just my 2 cents.
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Watered Garden
Working for the county, you must be getting the Arizona retirement program instead of social security. Unfortunately I worked for the State of Ohio only 9 years, and bought back service credits for 5 years, before retiring. I also get social security, but it is a paltry sum.
My suggestion would be to try to do both for a good long while, that is, work and invest and have a dandy vacation once or twice a year. I retired too soon, and get social security. If you retire before 65 and get social security, you can only earn $10,960/year until you turn 65. I am working part time demonstrating food for Costco and I enjoy it, but it pays a little over half what I was earning full time.
I also get OPERS retirement benefits, which are probably similar to those of Arizona. Before you retire, you need to be fully informed on exactly what your benefits will be, and that includes the insurance benefits. Go over each plan offered in minute detail. If you need to, get some help from their people before you decide. Don't let anyone rush you into a plan, or persuade you to sign up for just because your family physician is listed.
If you have an investment counselor, that would be a place to start, once you are fully informed.
WG
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Jim
Building things and learning about things are my life. I've been clear with my wife and daughter that when the day comes that I can't work, I'll most likely find some way to end my life. Ideally, as I get older, I will transition from being involved in the day-to-day responsibilities of running my company to being able to work full-time (or part-time) on projects that are particularly interesting.
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Rocky
I highlighted two things in your post.
First, your question... are you foolish to... ONLY you can answer that. HOW you decide also can only be determined by you. However, I would pose a couple of questions for you to consider...
In each scenario you envision, there will be numerous variables. You will NOT be able to control all of them.
FOR each scenario you envision, are there possibilities, or PROBABILITIES that certain things could happen that would cause you to regret having made that decision? Again, ONLY you can answer those.
Second, 30 years ago, when I was shortly out of the USAF, I took a job with what then was a major telecommunications company. I was "lucky" enough to get a job doing what I had been trained to do in the military... Most of my co-workers were as old then as I am now. At THAT time, THEY were talking about the "imminent demise" of social security. THIRTY years ago.
Much has changed since then. I left that job because of TWI (wow/corpse). However, even had I stayed, THAT job became obsolete with the nearly unimaginable (then) progress/new developments in communications technology... BUT social security remains. And unless Americans find a "universal" alternative, social security will survive US.
btw, things may or may not be as bad for your friend as you imagine now because of her current financial difficulties... they might be, but things could turn for her in ways she might now not even realize are possible. And I'm not talking about winning the lottery.
I faced similar difficulties a couple of years ago. I HAD to file bankruptcy in order to NOT lose my house to the mortgage holder.
I was able to defer any further serious action until I could sell the house for enough money to pay off the liens (two mortgages) and STILL buy a manufactured home OUTRIGHT in a retirement community... and I'm still two years younger than the normal age limit.
I AM retired. I don't travel much, but DO stay active, including volunteering at a child crisis shelter. For me, I have NO regrets about choices I've been able, or had to make.
Yet, I can't help but think that had I been able to start saving for retirement at a younger age, things would have been less stressful during the transition to retirement for me.
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walking
Enjoy Your Life Now or Later? I can give you no advice on that. It is a decision you have to make. I am 52. I went with the play now pay later plan. though I did nothing great I did accomplish some of the things I set out to do that at one point were just impossible daydreams of a lost little boy. I had plenty of perfect opportunities to have that white pickett fence life. just could not find love at the time, or maybe I did not know how to reconize it. I guess I was one of those dreamer types who wind up being a loner and sort of a drifter. I did do well but never took into account the years I thought I would never see, I'm well into those years now. I call them bonus time. I have few regrets. In the eyes of others I could have done better. That is according to their standards of life which is something yes I could have done but I chose to pursue the things I wanted to do in life. Well once again nothing great just the fact that I did accomplish some of the things I set out to do, I am content with the life I have. sure I still would like to do better and still may be able to. I do not need a mercedes, I do need a vehicle. A house would be nice, an apartment will do. I'll get right to the point. If you truly believe in God and Jesus Christ, trust them, believe they will be with you no matter your decision. Your needs will always be met and some of your wants, just maybe not to your expectations. right now as the penalties for drifting and not staying anywhere long enought to collect a pension for except from the type of work I am doing now, with SS should it still be there, a small pension check, A little annuity and maybe a part time job I will survive alright. That is okay with me I had the chance to live outside the Box, good times and bad times. I will share this with you. My ultimite goal is to be able to support myself with songs and poems I have written. I had to put that goal aside as I have to put a plan together for the days I'll never see, just in case I do, I still enjoy life now, how can I enjoy it later with all that time to wish I had done the things I have the opportunity to do now or have already done. I hope this makes sense. It not a topic I can provide a good answear to as the end results are unknown to me at this time, Just my thoughts in relation too me.
Why do I feel my face turning red, tough post
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socks
Rocky's on my page. Play some now but plan a lot now for later.
It's a balance, scales tipped to retirement, "sunset years", when you're an old fart and hopefully have the physical and mental capacity to still know when to and not to.
Smaller amounts of money set aside and allowed to ferment longer does better, generally, than large amounts set aside for less time. Depends on how it's invested of course but you can have much lower risk over the long term, so your money's saferto grow. Pretty basic stuff.
I really only started looking at all of this about 18 years ago. As recently as this year I had to get advice from our accountant, who repeated the "magic words" of financial planning - you can only plan for what you know, not what you don't. Plan for possiblities, but don't base all your planning on them. Like S.S. It may not be there when I need it, true. But as of now, I would plan for it to be there. Health Care - I made a decision to choose towards a decison that would guarantee (as much as can be known now) to have health care in place for me and dependents for life. Given my overall circumstances it seemed a wise way to invest x amount of income, now and later.
If your best laid plan would include you having the mental and physical capacity to enjoy life until it's last day, act accordingly so as to be able to do that as best you can now.
I wouldn't blow every penny on life now, but I wouldn't deny myself completely now to do that, if I had a choice, is what I'm getting at. If there was no choice, I'd be frugal and defer spending now, so as to give what income I do have as much time over the long haul to work, whether it be to pay bills, eat, or save.
The real question is - how do you want to live life, not how others do or have. Once your values are clear, it's easier to make decisions.
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waysider
Hi Walking
Lots of really good points in your post.
Is it possible for you to put any of your music on youtube and post it on "Music Lovers" or "Guitar Talk"?
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GeorgeStGeorge
I always thought that retirement wa wasted on the old. Better to party until you're 35 and then work until you die!
As that is not really an option, however, one must consider a lot of variables:
How long am I likely to live?
How long will my wife live?
(Retiring with $50,000 is fine if you expect to live a year!)
What is the likelihood of a debilitating illness? (family history, etc.)
Am I out of debt? If not, how will I manage what I have?
I have a reasonable amount in my 401K, some Social Security due me, some liquid (or liquefiable) assets, and no debt.
But I wouldn't want to retire--yet.
George
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Rocky
Ha! And here I've been saying for a long time now... YOUTH is wasted on the young!
Btw, George, I think the BEST part of your plan is the freedom from debt!
I have an extremely modest existence... but being debt free (including being done with the whole 'mortgage ' thing) makes ALL the difference in the world.
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Suda
Yeah, think it's a balance. Still trying to find it!
Suda
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Scout Finch02
To me it doesn't seem like this has to be an either or question. Why not enjoy life now and in retirement? I live frugally, and find ways to enjoy life on a budget. When I vacation, I go with family or friends, get good deals and pay cash for everything. There are a few places I am still planning on going, but will plan and save well in advance to do them. I have saved religiously for retirement since I was thirty and don't have concerns about retirement whether or not social security is around.
A big key for me is making my own decisions about what I want and need. Many of my coworkers live in homes worth half a million or more in prestigious zip codes, drive Lexus, BMWs, Mercedes, etc. I live in a working class neighborhood, in my little ramber/ranch type home built in 1950s that I have been remodeling myself over the last few years. It is not glamorous, but it is quaint and suits me. (and my pets or furkids as I like to call them) It is 75% paid for and will be fully paid off when I am 55. I drive a Toyota Corolla that is paid for. I use coupons at the grocery store, restaurants, for haircuts, and anything else that offers a coupon. I have budgets on Excel spreadsheets for at least the next six months and don't spend money without checking my spreadsheet.
Yes, my friends tease me because I am very anal about money, saving, etc. Occasionally my $9.99 haircut is less than perfect, but it just matches my many other imperfections.
I'll probably live the same way in retirement as I live now - spend money on what's important to me, cut corners on what is not, and enjoy the heck out of life.
I think it does boil down to what others have already said about deciding for yourself.
And I just hope this insomnia passes.....since I am writing this at 2:20 am.....
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coolchef
i've been retirered for almost 13 years
i retirered at 45 and haven't regretted it once
do i have much? no. but i don't need much. i keep my wants and needs simple
life is good
enjoy it
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