Home Forums Hunting & Shooting Hunter's Campfire Preparing for retirement...three years out

What would you change?

I would have gone the "Wealthy Barber" route and started tithing to myself off the first pay check and continued. I would have invested it even in a fairly conservative portfolio, and just let it grow. It's likely the simplest and best way to do things. I'm not complaining though.

Been with them for 20 years myself. At age 44 he brought up long term care last time we were together and he said not yet but keep it in mind. Have to say the health care at age 60 was really the driving factor that kept me in the Reserves through 20 (well, that and getting to keep flying for 18 of my 20 years )

One of the drivers to us moving within the year is the goal of being in the retirement house 15 years prior to retirement.

For us retirement is gluing together as many vehicles as possible. My military Reserve retirement, IRA's maxed for both of us. My 403B, Wife's 401K and a couple more funds and a few stocks. We live today on about 20% of our gross pay and save/invest the rest (well, except for the damn taxes ) . Optimistic it will work out

It will, because you're on the same racetrack we were. You're in "turn two", and we're rounding turn four is all. Don't ya love that "Do 20, wait 20" retirement plan in the Reserves? Well, it at least allowed me to have three overlapping careers.


For the rest of ya'll..SEE? You CAN!

Medical and LTC insurance will play a big part in your planning.



That right there, should be the forefront of your planning. And, no adviser can help you with that.

Good luck.

You are getting some great advise, being Canadian our retirement plans are a bit different and at least up here I am no fan of annuities. They tend to be expensive and lack flexibility.

1. Be debt free
2. be debt free
3. start early, save monthly
4. Invest in a balanced portfolio, under $100k mutual funds are great, over $100k lots more options that cost less. If you start early there is no need for an aggressive investment mix. Equities are king, but stick with large cap dividend payers for the bulk of your holdings.
5. be debt free
6. Fix up your house before you retire
7. Lifestyle is a function of both desires and bank balances, as you get closer to retirement adjust your spending to what you want to do in retirement just to see what it actually costs.
8. Think about a low stress parttime job to both keep you busy and put a few bucks in your pocket for walkaround money. I plan to work in a gun shop or golf store a couple of shifts a week for minimum wage or close to it just for fun when I retire.
9. The only exception to being debt free I can justify in retirement depending on your amount of disposable income is a car lease. In retirement, lots of people want to drive a relatively new vehicle so they don't have problems or unexpected big hits for repairs. I gave this advise to my parents who in retirement have income of about $45k before investments, they pay about $400/mth for a car and have since they replaced their 10 year old toyota in 1995. They had a registered(tax expemt until withdrawl) porfolio of about $250k when they retired and to buy a $20k car they would have had to withdraw $30k to cover the tax.
10. Oh yeah and be debt free.

I'm 38 and really enjoy these types of discussions. I won't have a pension and, by the way it sounds, might not even have SS but have been utilizing an IRA/401k since I was ~23. We've done alright so far but IMO, there's no such thing as saving too much!! My wife and I don't make alot of money but at least we've invested consistently during that time...

Lots to learn here and a great discussion so far....

My belief is that you can expect between 80% and 90% of the current Social Security payout.

Birth rates in the '30s were depressed. Birth rates in the '50s were high. That set the tone for the economics of Social Security.

Giving the payouts a "tune up" to comprehend the new economics looks like a 15% +/-5% hit.

I think inflation is a far higher risk than a 15% downward revision of the SS payout. My fear of inflation is another great reason to invest in durable goods in the homestead (windows, woodstove, etc.)

I agree that debt is a huge drag on finances. The house will be paid off in September.

Your number 8 is worth chewing on. I stumbled across the following piece several years ago.

http://www.alpharubicon.com/prepinfo/toughtimeshomesteader.htm

The writer's point is that "work" is like dating and "job" is like marriage. Nearly everybody has "work" that needs to be done, regardless of the economy. Very few are looking to make a long term commitment, "job", when things are shaky.

What does the collective wisdom of the 'campfire think?

I think #8 is a superb idea.

The folks who retire with nothing to do to keep them active and occupied, get buried soon after retirement.

Seen it.... often.

You should set out to do what you WANT to; because you don't HAVE to do anything at all.

Yup. Job or no job, there are still 24 hours in a day. That might seem far too few - or far too many. Those who lapse into the "far too many" attitude are soon under a headstone.

Follow on of your passions, or begin a new one. Volunteer. Enroll in adult courses. Join a golf league. Join a bridge or canasta league. Enroll as a crossing guard. Go to the gym. DO something.

Believe me, you'll have nothing but money and time. Spend them both wisely and you'll live a long and happy life. Spend them unwisely, and you'll run out of both very soon.

Me? I go fishing two days a week, go golfing two days a week, go shooting two days a week. And the other day, I just waste, LOL! I've literally worked all my life to get here. I'm going to stretch this part out as long as I can. Ahhhhhhhhh!

That's the best plan I've heard yet....

My mom's uncle retired from Boeing at 55, bought a farm in Arkansas, and now works as a school bus driver for their little school. He says thats been the highlight of his working life is picking the kids up morning and afternoon. His wife works a couple hours at the school as a cook. Says it gives them something to do and puts a little extra jingle in their pocket that they don't really need.

The only thing I would add is checking out social security. I've seen more pure BS and misinformation about that program on internet gun forums than I have about the best caliber for deer, and that's saying something!

Go to www.ssa.gov for the straight scoop. It's a good site.

Suggest you 1st consider a "Fee Only Financial Advisor". They have no vested interest in what (products or services) they recommend for you and most 1st consultations are free. 1-888/333-6659 and they can locate one near your area. From there you can pick your path. Stay away from "Wrap Accounts" unless you fully understand the total cost. On Annuities, consider only the low cost ones from TR Price, Vanguard, Fidelity or Tiaa-Creef (this assuming you do one outside of your 401k/IRA/403B, etc.).

LTC, well, like Annuities, the policy is only as good as the insurance company it is through which is say - know the ratings of that company and fully understand what that rating means.

"Honest" you ask? Just look at what's happening presently with the big investment houses and it's already extending to insurance companies, see above comment on that.

Old saying: When a man with money meets up with a man with experience, the man with the money winds up with experience and the man with experience winds up with the money. Caveat Emptor, Pard.

Lots of good info here. Heck of a thread.

OT

I planned to retire at the end of 2008 (I will be 67 then), but then I learned that we have a new grandchild on the way. Several years ago, we started putting $5000 in a 529 college plan for each grandchild at birth and add $500 for each birthday and Christmas. So much for retirement this year, but here's what I've done to prepare for retirement at the end of 2009.

1) I switched jobs at the end of 2007 to a lower pressure, fewer hours per week postion at a civilian Federal agency.
2) Since 1994, we've (my wife and I both work) contributed the maximum to our 401k (or TSP) plans and IRA's. Additionally, we save additional funds in taxible accounts.
3) I had planned to move to a lower cost of living area and invest the proceeds of the sale of my house. Unfortunately, our friends and doctors are here and we've decided to not start all over.
4) After having moved 9 times in the last 45 years, I still have a mortgage on my current house. Monthly PITI is about $1500, so we can afford it, but it will crimp some travel plans.
5) We have no other debt, so that is one thing not to worry about.
6) My wife and I each plan to do some consulting for several years. She will do organizational restructuring and I will do some economic analysis consulting.

The only advice I can offer to anyone contemplating retirement is to be sure you can! Prepare a budget and live within it. Contribute all you can to tax deferred retirement accounts, plus save everything else you can. Once you fully retire, it is difficult to get back to a good paying job, unless you have a particularly in-demand skill. The job you now have will probably be hard to replace, so be certain you can live in retirement before you quit.

FWIW, all insurance, be that LTCi or annuities, are backed up by the Guaranty Trust associations of every state. So, no, the policy is as good as every insurance company in the state, and the state agencies that oversee them.

Very analogous to the FDIC insurance on bank accounts.

But are their cap limits on the insurance?

I seem to recall someone getting nailed last year because his bank went belly up and the FDIC only insures so much of your funds(I believe $100,000).


Also, is their a reason you need to get an in-state financial planner?

$300,000; per deposit on insurance policies, including annuities.

You need an in-state financial planner (or at least one that is licensed in your state and does a good amount of business there) because each state's insurance licensing requirement, compliance issues, and estate, tax, and Medicaid laws are different. Your planner should be up to speed on that BEFORE you start the conversation, not afterward.