contemplating retirement options - looking for input

[TnT_M]

Well folks, I have been giving retirement some serious thought the last few weeks. I love my job, but I will be 49 in March. I don't want to miss my golden years working it away. I'm thinking about 55, but for sure before 59. In preparation for this life changing event, we are working on estate planning (next week) and retirement financial planning (the week after). I'm sure the next 6 to 10 years will go fast!

So, here is my ask... For those of you that have been through these life changing events, what insight or questions should I prepare for my estate planning and retirement planning meetings?

• We currently live in Iowa, but the boss wants to move to a warmer climate (likely Florida, I suggested Tennessee)
• We have 2 sons, 23 & 25 that are on their own.
• I have 401k, Roth IRA, Stock account for retirement income
• I will get a pension and SS
• I have questions around healthcare options, costs etc.
• We intend to take advantage of a trust
• I will probably look to work part time on my own terms in the early years (something like restoring cars, manufacturing consulting, handman etc...)

I don't want this to be "can you afford it?", but more of a "have you thought about..." I believe the math will math for me, if I know the variables.

Thanks in advance for any insight.

 

[PWMDMD]

Jeez...I'm 47 and feel like I'm just getting going! I have at least 20 years left.

You could call or email the individuals you're going to meet with and ask how to prepare. My team has always been really good about shepherding my wife and me through the process.

 

[TnT_M]

Jeez...I'm 47 and feel like I'm just getting going! I have at least 20 years left.

You could call or email the individuals you're going to meet with and ask how to prepare. My team has always been really good about shepherding my wife and me through the process.

Thanks!
I guess I should have put that there is a checklist of things for the financial planning meeting. According to the wife we will get one for the estate planning during our first meeting. I'm just trying to hear from others their input and things to ponder.

 

[Leo99]

I met with a financial advisor on Friday to go over my plans to retire in 6 months. One of the big things we talked about was risk tolerance. We settled on a 40/60 split of stocks/bonds for me and the wife. You need to look at how much money you have and how much money you'll need in retirement. Like if you have $100M and live frugally, no need to take on risk. However, if you're cutting it close, you might need to take on more risk and hope it works out for you. You need to figure out how much you need a month and do the math to see how much you'll need. When will you take SS? Do you need to take it earlier to make your budget work? How financially stable are your kids and how much do you care about leaving them an inheritance? Health insurance is going to be expensive, about $1500 to $2500 a month from what I saw when I looked. There are plenty of options in the state exchange and they price depending how your income from the previous year or maybe the previous 2 year's. Don't let your health insurance lapse.

Look on SSA.gov and see what your SS will be at 62 and 67 and 70. The advisor will ask that. They will ask if you have any big expenditures planned, like a trip around the world and new addition to the house. Will relocating cost money or save money or break even? They will ask about your monthly budget for essentials and discretionary spending.

 

[Sequoiasoon]

My Ponder at 56 is that in reality, I think I need to take home more than I am making now (monthly/yearly) from all sources forever. No prices have dropped, my mortgage not gone yet, the only difference is I won't be saving for retirement from the income. Different states tax the pension and other retirement income differently. My sister is planning for Tennessee currently. Large difference in NY vs TN retirement taxes.

Consider meeting with 2-3 different advisors, fiduciary, make no commission, fee only. I get ads for smart asset.com and Advisor.com. Regular USPS mail and online for Fisher Investments. My credit union just had an Estate planning seminar so check your banks and show up at a couple. Some sponsor at a dinner thing to try and get business.

We sat with a straight hourly fee Medicaid Specialist for my mom. She covered so many things about what she could have as assets in case she ever goes to a nursing home and what is subject to taking otherwise. We created a trust for the house and big chunk of her funds to get it out of her name.

Radio ads for "Trust and Will" as a website for low cost basic things but information to review.

The healthcare scenarios are a large consideration. I hope for 62 and will also have pension, SS, 401k, Roth IRA and other investments. Wife will have SS, pension, 403B and some small IRA's that will be gone quickly.

 

[02SE]

It sounds like you have a solid plan to make retirement viable. It's coming up on 24 years since I 'retired'. Although almost immediately I picked up a hobby which became a well-compensated gig. The upside to a hobby is that you can walk away at any time. Which I did for several years.

I'll just wish you the best.

There's never enough time, even in retirement.

 

[slo town]

21 years ago I voluntarily retired from a lucrative 25 year career with the same company at age 52.

For men especially, I don't think this is a good idea. Besides the obvious loss of income, it is my belief and my personal experience that men have a tendency to isolate themselves in retirement. The last years of my career were spent working remotely from my home office. We moved to an area 175 miles away from where I spent most of my life. Most of my core group of friends and ex-colleagues still live there. When you move and don't work in the area or have school age children it's an easy way to become isolated.

I know you said that you didn't want financial advice, but let me add this. I felt financially secure when I retired and to an extent still do. But, with all the weird financial stuff going on (inflation and such), my sense of financial security is less than what it was when I retired. FWIW.

Scott

 

[andrew_j]

Just make sure you owe absolutely nothing going in. Also consider what money you need outside of your pension and social security and slowly draw that into safe accounts with 2 year window in case market drops.

 

[Lubener]

Well folks, I have been giving retirement some serious thought the last few weeks. I love my job, but I will be 49 in March. I don't want to miss my golden years working it away. I'm thinking about 55, but for sure before 59. In preparation for this life changing event, we are working on estate planning (next week) and retirement financial planning (the week after). I'm sure the next 6 to 10 years will go fast!

So, here is my ask... For those of you that have been through these life changing events, what insight or questions should I prepare for my estate planning and retirement planning meetings?

• We currently live in Iowa, but the boss wants to move to a warmer climate (likely Florida, I suggested Tennessee)
• We have 2 sons, 23 & 25 that are on their own.
• I have 401k, Roth IRA, Stock account for retirement income
• I will get a pension and SS
• I have questions around healthcare options, costs etc.
• We intend to take advantage of a trust
• I will probably look to work part time on my own terms in the early years (something like restoring cars, manufacturing consulting, handman etc...)

I don't want this to be "can you afford it?", but more of a "have you thought about..." I believe the math will math for me, if I know the variables.

Thanks in advance for any insight.

I retired (after careful planning) from my job of 30 years back in 2013. I was 50 at the time and debt free. I was then able to do things in my life which I never would have been able to do while working. Unlike you, I hated the last three years with the company because a new owner was a meglomaniac. A one year non compete through a wrench in the works so I got involved with projects and hobbies to keep busy. .. I have no regrets and my lifestyle allowed me to successfully do so. Health insurance is the biggest expense to get used to and it will be many years potentially before you can collect S.S. and apply for Medicare..

Would you like to move to Florida? That's a big decision itself. You are fortunate that you enjoy your job. For that reason, I would work till 55 if I were you. That's if you want to relocate.However, your meetings to go over the numbers will better answer the question of "when". Make sure you are debt free. You don't want debt during retirement.

 

[Fitter30]

Both my pension and ss from retiring early was going to take a hit. The other big thing would be health insurance especially not old enough for medicare. Qualified for a disability that took a lawyer that took away the hit from the pension, ssi and got disability health insurance (ssd)/

 

[Pablo]

Well folks, I have been giving retirement some serious thought the last few weeks. I love my job, but I will be 49 in March. I don't want to miss my golden years working it away. I'm thinking about 55, but for sure before 59. In preparation for this life changing event, we are working on estate planning (next week) and retirement financial planning (the week after). I'm sure the next 6 to 10 years will go fast!

So, here is my ask... For those of you that have been through these life changing events, what insight or questions should I prepare for my estate planning and retirement planning meetings?

• We currently live in Iowa, but the boss wants to move to a warmer climate (likely Florida, I suggested Tennessee)
• We have 2 sons, 23 & 25 that are on their own.
• I have 401k, Roth IRA, Stock account for retirement income
• I will get a pension and SS
• I have questions around healthcare options, costs etc.
• We intend to take advantage of a trust
• I will probably look to work part time on my own terms in the early years (something like restoring cars, manufacturing consulting, handman etc...)

I don't want this to be "can you afford it?", but more of a "have you thought about..." I believe the math will math for me, if I know the variables.

Thanks in advance for any insight.

Does the state you will retire in have an insurance marketplace? If it does, check it out, but don't forget the IRS will see the discount as "taxable"

Taxes are sneaky when retired - watch out - the whole gig is not in favor of just doing work for income and if you do, don't get overjoyed about the $ before you figure the taxes.

You didn't mention how your savings $ are tax sheltered.

 

[JohnnyG]

Too many unknowns.
How much is in your 401K?
How much money do you need per month to live the lifestyle that you are accustomed to?
Assuming a 3% return going forward, will your 401K money maintain that lifestyle?
Do you intend to purchase annuities? At what percent return? Cost?

Can you survive the time between retirement and when SS kicks in? What effect will that have on your "nest egg" going forward.
Do you have defined benefits from work? Health insurance?

 

[thastinger]

I could have financially retired 10 years ago but I have to have something to keep busy at. I enjoy what I do and the pay is decent but tha man takes half. I guess I'll go until it costs me money to work (I HAVE to switch to Medicare at 65), then I'll start shooting skeet at the local range and reloading for myself.

 

[Vil_Riker]

I will likely be retired this time next year at age 51. The plan is to relocate out of the US to somewhere in the Mediterranean. There are a couple of factors behind moving out of the country and healthcare is one of the main ones.

One advice I would have is to get residence in a place without state income tax if possible, like Florida or Texas.

 

[gfh77665]

FL and TN are great, great states! With that in mind, they are becoming overcrowded to a degree. It will be a sellers market rather than a buyers market, likely. TX was mentioned, and TX offers great options if you stay away from the booming metros and adjacent suburbs. Look for rural TX counties within a 60-90 min drive to a metro. Consider AR, OK, LA too.

 

[Vil_Riker]

BTW, here was my BITOG thread on it, it might have useful information. Since then the plans have matured and the destination finalized together with the budget.

V

Thread 'Retiring early... Geographic arbitrage'

Sep 25, 2024

Recently have been quite a few posts about retiring early, retiring and moving abroad, etc.

This has started really bugging me, in a nice way. In the last couple of years I have lost a lot of family members, some were in their early 70-s, some were younger. Seemingly healthy people just died suddenly - cancer or cardiac reasons. If I am to follow their life expectancy, I don't have much time left either. I am fully inoculated (just like they were) so I think I'm a high risk for "unexplained excess death" statistic.

The sad thing is that I can't retire in the US. My monthly income from...

• Vil_Riker
• Replies: 184
• Forum: General and Off Topic

• 

 

[Oillover]

For men especially, I don't think this is a good idea. Besides the obvious loss of income, it is my belief and my personal experience that men have a tendency to isolate themselves in retirement. The last years of my career were spent working remotely from my home office. We moved to an area 175 miles away from where I spent most of my life. Most of my core group of friends and ex-colleagues still live there. When you move and don't work in the area or have school age children it's an easy way to become isolated.

I agree with this and is my main reason for continuing to work.

Don't get me wrong, I'm all for pursuing personal interests in retirement, but my job is one that doesn't require me being there everyday and the work life balance is quite comfortable. The social aspect is what bugs me, as my old friends are far away and have all moved on with their lives. Working gives me a reason to stay in contact and socialize with my colleagues, even if only on a professional level.

YMMV

 

[Vexorg]

Take a vacation to the places you think you want to retire. Go there with the "idea" of moving there, not as a tourist. Go look at houses, condos etc. The wife and I have done this a couple of times now and the places we wanted to go to have turned out to have some serious negatives that mean we have to look at another place.

 

[xspeedy]

As was mentioned, think of a state without income tax. But do know you may have higher other taxes to make up for that. In TX it is high property tax, so if your priority is a $2M mansion in a desirable area then you’ll pay. I’m kind of retired before my time, but I live modestly and have significant income. So for me, higher property tax in TX makes more sense than a state income tax like IL. If you have all this free time, you will get bored and so you’ll desire hobbies or want to travel a bunch. You may find yourself eating out more and hanging out at the pub. Budget for all of that, and don’t forget inflation.

 

[CKN]

Just make sure you owe absolutely nothing going in. Also consider what money you need outside of your pension and social security and slowly draw that into safe accounts with 2 year window in case market drops.

You can make payments on things (vehicles) if your cash flow allows it.