Adjusting to retirement

Coastal_OReggON

My husband and I consider ourselves very fortunate people who were able to retire early and haven't regretted it at all (except as some have said, not doing it sooner). 

@fishlessman going from maintaining two residences to one is a huge savings!  As mentioned above, you'll know when it's the right time for you.  

CPFC1905

Not sure where I fit in this.  Took the pension but immediately got a job and have a side gig too.  ‘Retirement’ for me is one easier job and one fun job.  

Upside is stability, downside is I haven’t quite worked out optimal effort for return in either job yet.
 My next major change will be in nine years and two weeks when I hit 60, no way I am doing this much then! 

I suppose I need a target to aim at, but is that me justifying 33 years of behaviour where I let work determine and control me?  

lousubcap

@CPFC1905 - you may need a target given your experiences but once you sort out that you are clear from a financial perspective, for me it came down to "You will know when it's when."  Once you make the decision, go forth and enjoy!  No pearls of wisdom here...

CPFC1905

Spot on Frank.  My pals a few years ahead have reached that pivot point when they have enough and have had enough. 

Foghorn

This is a great thread.  As someone who is finding some aspects of my job less enjoyable, but is also finding that I'm getting professional opportunities that I really enjoy this has given me a lot to think about as I approach retirement age.

saluki2007

I started a side hustle with someone where he handles the sales and I handle the business operations. It only takes up about 5 hours a week of my time but gives me enough money to put away money for the kids college fund. Oh and they are only 6 & 4 so they take up plenty of my time. My wife typically only works 3 days a week so that gives us plenty of family time. 

dbCooper

Some background: I retired in January of 2019, just short of turning 57.  My planning started in my early twenties with the goal of being able to retire at 55.  That goal was attained but I stayed working because I loved the "work" (IT/OT Security) and the people I did it with.  SCADA Systems on the OT side were particularly rewarding.  That all changed with a new VP/CIO and management structure with dubious competency.  My philosophy for career success was always "make you manger look good" and that worked well for over 40 years.  Now being in a position where I truly wanted to make my mgmt. look bad, I walked instead.  As did 80% of my Sec. co-workers over next two years.  So the disillusion wasn't just with me it seems.

For those contemplating early retirement, much good advice has been given already, most pertinent being know how much you need per year to lead the lifestyle you desire (I added 10% to my high-end estimate).  Next you need to estimate your expected remaining years.  Actuarial tables can be a rough guide.  Your genetics are also important, so give weight to how your parents and grands have done.

With your income requirements and number of years you can start estimating if you'll be Egging during the leisure years or munching on cat food.  Various tools can help in this determination.  My favorite for home use is FIRECalc, https://firecalc.com/  It offers flexibility to run simulations with modifications to investment mix, expected investment returns, inflation models and rates etc.

Another point that may be of interest, you can withdrawal from a 401k at 55 with no 10% penalty under some conditions.  One of those being you leave your job after age 55 and the 401k remains under the custodianship of your former employer.  Converting it to a IRA will nullify this exception.  IRS Publication 575, pages 33-36, has the details.   https://www.irs.gov/pub/irs-pdf/p575.pdf

Best of luck to those getting close to jumping, the grass really is greener over here!   

evie1370

I am retiring January 28th.  It is 2 years early,  but it is time. Like many our company is moving in a direction (government business) without the resources,  basically squeezing out every possible dollar they can. So when I told the hubby I was done we were ready. My plan is to do nothing for 3 months, but to concentrate on volunteering , visiting family and friends...things I never had time for. Scared as this is a big change but excited too.

littlerascal56

My co-workers have been stopping by my house for the past year, as most are turning 62 soon.  Lots of questions on health insurance & investing their pensions.  So far, I have convinced 8 of them to leave in December.  Lump sums will drop substantially on January 1, so it’s definitely worth running the numbers if you are in that situation!

UncleKeith

I’m on my way out. I’m an environmental clean up consultant an am pulling the full time plug at 61 1/2. I was out for six weeks this summer for a hernia surgery/recovery (I milked it a couple extra weeks) and my blood pressure dropped significantly and I lost 15 pounds just from not eating fast food. The surgery recovery relaxed me that much; taught me a valuable lesson.

When I went back to work my heart just wasn’t in it. It didn’t help that my wife and our financial planner have been telling me for 3+ years I could quit. 

I told the powers that be that I would work full time through Thanksgiving week since I was already booked those days. Once I’m through that I told them I would work part time but no more than 10 days a month.

 I’m pretty excited!

Botch

Heh, retirement does reduce the irritation of the DST conversions... 

Gulfcoastguy

My computer, phone, and car all change on their own. My dog, on the other hand, expects to get fed, walked etc. by his bio clock.

Yno

Our daughter's dog, which we steal on every available occasion, wants his breakfast at dawn. Pain in the rump during the summer, but no bad in the winter. Dinner, however, is at 1700 hours year round, and he will let you know if you are late.

ChrisgrillsSTLMO

Greetings all - I retired in June after 31 years of teaching high school. My stress level decreased significantly and I have worked hard to make up all of the sleep deprivation I accrued during those years. The hardest part of being done was leaving my coworkers, I was incredibly lucky to work with amazing educators who were more my friends than colleagues. I don’t at all miss the homework and emails.

When I retired I said I would take the summer off from any sort of job, and SWMBO said to make it a year to see how I felt. So far it feels pretty awesome 

I usually get to the Egg twice during the week and at least once on the weekend. The nice part of being home during the day is I can get prep and pre cooking complete while she is working so we can eat at a decent hour.

Cheers,

RRP

ChrisgrillsSTLMO said:

Greetings all - I retired in June after 31 years of teaching high school. My stress level decreased significantly and I have worked hard to make up all of the sleep deprivation I accrued during those years. The hardest part of being done was leaving my coworkers, I was incredibly lucky to work with amazing educators who were more my friends than colleagues. I don’t at all miss the homework and emails.

When I retired I said I would take the summer off from any sort of job, and SWMBO said to make it a year to see how I felt. So far it feels pretty awesome 

I usually get to the Egg twice during the week and at least once on the weekend. The nice part of being home during the day is I can get prep and pre cooking complete while she is working so we can eat at a decent hour.

Cheers,

Congrats! My beloved wife taught English in high school for 35 years up here north of you in Peoria, IL. I will sound selfish as I know I worked my *SS off during my career in banking with 10 hour,  6 days way too common… but her grading of homework was commonplace every night all 7 days a week including the Easter,TGD, Christmas and Spring breaks,

May YOU now learn to relax as you deserve it!

MJG

I took an voluntary buy out/early retirement at the end of June after 25 years in IT at a large financial services firm. At 50 it was not expected but was too good if a deal to pass up. Since then I’ve played golf 4-5 days per week and picked up a volunteer gig. Now that golf is winding down I need to find a new job where I can hopefully put in another 8-10 years and then really retire!  

BikerBob

We owned a business, marginally profitable at the time. My wife turned 65 and went to the SS office to get Medicare. man there started her SS and ran number for me at age 65. Delaying another two years until full age would bring in more money per month, but the extra two years of payments meant I would be 85 for the break even point. My wife would draw 1/2 of my monthly which was more than hers so there was no choice. 
The Bush depression had hit and our customers were feeling it so spent less, our expenses were going up and it was time. 
A six week vacation was by a year of reverse snow birding (head north every time it snowed) and then several years of volunteering. My daughter in Denver was expecting end of summer so volunteering for the summer at Rocky Mountain National Park which provided a house was a pleasant way to spend the summer and be there for the new arrival.
While today the idea of a regular job schedule would not be welcome, another volunteer when we want gig might be welcome

RajunCajun

I very much admire the folks that are able to retire early.  It's a big step, I can imagine.  Is saving for retirement still a thing after retirement?  Or is saving no longer a goal?  Old enough to wonder and not old enough yet.  

EggNorth

RajunCajun said:

I very much admire the folks that are able to retire early.  It's a big step, I can imagine.  Is saving for retirement still a thing after retirement?  Or is saving no longer a goal?  Old enough to wonder and not old enough yet.  

Saving for retirement after retirement is not a thing, at least for me.  Goal already achieved.

saluki2007

RajunCajun said:

I very much admire the folks that are able to retire early.  It's a big step, I can imagine.  Is saving for retirement still a thing after retirement?  Or is saving no longer a goal?  Old enough to wonder and not old enough yet.  

Depends on your goals. If your goal is to spend every dime you saved then no. If you want to pass something along to someone else in your life then you can still make your money work for you. 

Gulfcoastguy

I was lucky enough to have a pension with an annual 3 percent cost of living increase( inflation was 6.9 percent this year) as long as my bank account is increasing each month I’m good I imagine. In less than 4 years  social insecurity will kick in. Of course at some time I might have to check in to the Last Stop Hotel and I hear that is expensive. 

Corv

There's still plenty of time to live after retirement, and since we normally don't know just how long we have, it's a good idea to keep watch on savings or investments. I read recently that the conventional idea of spending 4% of your savings is too much, that it should be about 3.3%. Some people are fortunate enough to have a positive cash flow even in retirement and that's a better position.

JohnInCarolina

Gulfcoastguy said:

I was lucky enough to have a pension with an annual 3 percent cost of living increase( inflation was 6.9 percent this year) as long as my bank account is increasing each month I’m good I imagine. In less than 4 years  social insecurity will kick in. Of course at some time I might have to check in to the Last Stop Hotel and I hear that is expensive. 

We've been helping my parents through the process of trying to find an assisted living place to move into.  They have thankfully saved for retirement very well and are in reasonably good position financially, but good Lord some of these facilities are incredibly expensive.  And they have long waiting lists.  It has definitely impacted the way we're thinking about our own retirement savings, even though it's a ways away.

dstearn

I started contributing to retirement since 1978 prior to 401k plans being available. When 401k plans became available I contributed the maximum I could. In 2019 I ran the numbers and figured I could make about the same working as retiring and retired at 63. My only advice is to make sure you have a hobby or some activity that will keep you busy once you retire. For me it is photography and BBQ.
Also, start saving for retirement early. Just saving 10% in a 401k can add up to a nice nest egg after 40 years.

fishlessman

bag boy at the supermarket last week was forced to retire at 55, he was a traffic controller at logan, now a bag boy. just wanted something stress free. talked about an upcoming pats game and asked him what time it was on, no idea, the 18 year old running the cash register pointed at a sam adams 4o foot schedule hanging over the beer. the ex traffic controller never saw it hanging there right in front of him the last couple months, how does one shut that off so completely

RRP

I’m wading into the deep water here risking being called out as a “rich old fart etc” 

We both are now 77…Pat retired at 58 and me at 60.

For us our “savings” consisted of a multitude of forms started long before. In my case I “walked away” twice in the 60’s and 70’s from pensions only to later vest in 3 other pension plans.

Then of course I was working racking up points for Social Security.

Pat has a nice monthly pension from 37 years teaching.

BUT even as a youngster I was taught to become a saver! And I always saved, as well as invested in stocks since 1966.

Yes, we STIILL save a portion of our monthly pensions, social security and that friggen required minimum withdrawal requirement from our traditional IRAs . 

Still saving even in our retired ages? 

Why??? WHY NOT??? I’ll tell you why…Life may turn nasty and keeping a loved one “secure” will become incredibility expensive!  

 

Just sayin…

littlerascal56

As far as finances and retirement, do some research on the “Monte Carlo simulation” to get a feel of what to withdraw thru the years.  And then sit down with a financial advisor (preferably a fiduciary) that can model your investments.  I use a wealth management company, and meet with my advisor 4-5 times a year to review the portfolio and do lunch.  They charge me 1% annually, but it’s worth every penny….I don’t have to worry about buying/selling stocks, and all the associated paperwork or IRS forms.  They do it “full time”, so I can enjoy retirement & my hobbies without losing sleep in a crazy economy!

saluki2007

littlerascal56 said:

As far as finances and retirement, do some research on the “Monte Carlo simulation” to get a feel of what to withdraw thru the years.  And then sit down with a financial advisor (preferably a fiduciary) that can model your investments.  I use a wealth management company, and meet with my advisor 4-5 times a year to review the portfolio and do lunch.  They charge me 1% annually, but it’s worth every penny….I don’t have to worry about buying/selling stocks, and all the associated paperwork or IRS forms.  They do it “full time”, so I can enjoy retirement & my hobbies without losing sleep in a crazy economy!

Yes wealth managers are worth it. Mine charges 1% on the first mil, 0.75% on the next mil and anything over 3 mil 0.5%. 

And just because you hire someone to handle this doesn’t mean you shouldn’t be involved. I still personally review our investments and make suggestions to our advisor. My parents have their money with a different advisor within the same firm I use and do the same for them. 

Meatfluencer

Most financial advisers can’t beat the S&P especially over the long term. Take Buffett’s advice and save yourself the 1%. That money adds up over time. Incremental investing is key. 

saluki2007

Meatfluencer said:

Most financial advisers can’t beat the S&P especially over the long term. Take Buffett’s advice and save yourself the 1%. That money adds up over time. Incremental investing is key. 

It's not necessarily all about beating the market.  They can help some diversify their portfolios, introduce them to alternative investments, tax sheltering ideas.  If you have a good adviser they aren't trying to beat the market.  Their goal should be to help you meet your retirement goals while at the same time helping increase your nest egg.

But at the same time it's not necessarily a great idea for everyone, I agree.  As far as Buffett's advice, sure it's easy to say that when you are one of the richest people on Earth who run's an investment firm...