There Goes My retirement Plan!

[vacationhopeful]

When I was younger, I was forced to dump a house I had brought the year before due to a "downsizing/layoff". Fortunately, a neighbor told me ANOTHER neighbor REALLY had wanted to buy the place, was still willing to buy the place and WE both had assumable mortgages. Without a realtor, we swapped houses and I had to bring cash to the table ... still way, way cheaper than MONTHS of trying to sell and paying a real estate commission.

I was VERY happy .. my house was too big and I had to downsize & rent newly traded for house, to move to a graduate program 100 miles away. And got it done within 30-40 days. I still sob my eyes out the first night I slept in the "2 bdr UGLY house".

Retirement should be treated for what it is ... a major life changing event. Possessions are just "things" and many times, anchors to our living a better life.

Do I like where I am living now? Sure .... but I know within the next several years, I HAVE to move. I have a 6 bedroom house ... living there by myself. It is on a plot of almost 4 acres. Filled with my stuff and the prior generation's stuff. And whoever buys it, will almost for sure, tear it down for the ground. But I will stay until the local real estate market improves .... or the petro tank farm behind me blows up .

 

[Conan]

This looked better in my Excel spreadsheet.

It shows that a couple that earns $80,000/year after tax and manages to save $12,000/year of it, investing the savings at a meager 3%/year over their 35-year working life, will have saved enough to withdraw $48,000/year during 20 years of retirement.

Maybe it's a two-earner couple: One of them earns $75,000/year pre-tax or $55,000 after tax. The other earns $35,000/year pre-tax or $25,000 after tax.

Half of the second earner's take-home pay goes into the expense budget, and half goes to fund their retirement.

That's with nothing from social security.

Working Year
Earn After Tax / Save / 3% growth
1 80,000 12,000
2 80,000 12,000 24,360
3 80,000 12,000 37,091
4 80,000 12,000 50,204
5 80,000 12,000 63,710
6 80,000 12,000 77,621
7 80,000 12,000 91,950
8 80,000 12,000 106,708
9 80,000 12,000 121,909
10 80,000 12,000 137,567
11 80,000 12,000 153,694
12 80,000 12,000 170,304
13 80,000 12,000 187,413
14 80,000 12,000 205,036
15 80,000 12,000 223,187
16 80,000 12,000 241,883
17 80,000 12,000 261,139
18 80,000 12,000 280,973
19 80,000 12,000 301,402
20 80,000 12,000 322,444
21 80,000 12,000 344,118
22 80,000 12,000 366,441
23 80,000 12,000 389,435
24 80,000 12,000 413,118
25 80,000 12,000 437,511
26 80,000 12,000 462,637
27 80,000 12,000 488,516
28 80,000 12,000 515,171
29 80,000 12,000 542,626
30 80,000 12,000 570,905
31 80,000 12,000 600,032
32 80,000 12,000 630,033
33 80,000 12,000 660,934
34 80,000 12,000 692,762
35 80,000 12,000 725,545
retirement year
spend
1 48,000 699,311
2 48,000 672,291
3 48,000 644,459
4 48,000 615,793
5 48,000 586,267
6 48,000 555,855
7 48,000 524,531
8 48,000 492,267
9 48,000 459,035
10 48,000 424,806
11 48,000 389,550
12 48,000 353,236
13 48,000 315,833
14 48,000 277,308
15 48,000 237,628
16 48,000 196,756
17 48,000 154,659
18 48,000 111,299
19 48,000 66,638
20 48,000 20,637

 

[WinniWoman]

I grew up wanting to work, very happy that I worked and thank goodness I worked. I would go stark crazy being a homemaker. Homemaker work never ends, cleaning, cooking, baby talking when kids are young, talking to walls instead of people during the day. I enjoy the socialization and the challenge of the grey matter up there. It is not feminists who ruin for women, it is the recognition that women are smart and "we can do everything that men can do, and more".

I guess this is why we are all different. I don't want to do what men do and I bet there are many men who don't want to either! LOL! My husband can't wait to retire!

I like doing things on my own terms. I like doing what I want to do. I don't want to account to anyone or be on THEIR schedule. I do not find work interesting in the least. I find it to be drudgery and a bore.

All I do at work is talk to people all day and I realize I really don't want to talk to most of them about nonsense. (I am a talker which is why I am in marketing- I do it for a living).

On top of this, it is the schedule of work that really is awful as far as I am concerned. Talk about repetitive! Same thing day in and day out. Wearing out my car and my body. At least if I am home I can plan what I need to do or not do anything at all or do something completely different. I can be spontaneous. As far as I know, work at a job never ends- that is what is endless! And I can't wait for it to end!

Socializing at work with coworkers is minimal. Hell- we only get a 1/2 hour for lunch. Yes, we do have some laughs. Best part of the day.

I am out talking to people all day- some very nice and all that, but I have no connection to these people outside of work. When I retire I won't see them again and I really don't care as we have nothing in common outside of the business connection.

If people want to work until they drop- more power to them. Not me.

 

[WinniWoman]

Well marry rich and rep the benefit for life.. don't marry rich. ..

Sent from my SAMSUNG-SM-N910A using Tapatalk

Ha! ha! I should have been born rich instead of beautiful! LOL!

 

[Laurie]

I always say the feminists ruined it for a lot of women who just wanted to be homemakers! In fact, most of my female coworkers agree.

Yeah! and they ruined things for the men and women who didn't want women to have the right to vote, or the right to own property, or decide who and when to marry, or not, and on and on...

 

[WinniWoman]

I'm 54 and I want to retire right now as well… I have to wait till 67 to retire. During the Great Depression that Michigan was in we lost a lot of income. Hubby lost his job and it took till 2015 till he could get a direct hire job again. I was forced to take pay cuts. So we have 5 years to make up…


I just hope I can make it

Same here. Same situation. Pay cuts/layoffs/lost money. Lets hold on for dear life! I am trying to think positive! We are in better shape than most and I am thankful for that. We at least have jobs and income.

 

[dsmrp]

Your not kidding! Everyday I just want to scream! In fact, I do scream when I am getting ready for work or in my car! I wish I could feel differently. I try to just be thankful I have a job and the income coming in. But I can't get rid of that dreaded feeling......

I know that. I just want to at least retire at 65, since my husband will already be retired for a year by then and we want to get on with the next phase of our lives. No, actually I want to retire right now! LOL!

I have health insurance through my husbands employer not mine.
...

mpumilia, I get that you don't want to work, I feel that way myself more often than not. But I like to eat, travel, shop at Costco and have children who need financial help, so it's off to work I go. Having a job or work you like goes a long way towards life satisfaction. Since changing paying jobs in middle age is pretty difficult perhaps you could look at doing the following,
if you already haven't:
1. working a little less, e.g. 80%, 4 days a week. Since your health insurance is thru your husband that's less a factor for having to be FT.
2. telecommuting, 1 day a week, if your job position and employer allows.
3. car-pooling, part ways perhaps, with someone else
4. taking a class in something that interests you
5. getting that dog

 

[x3 skier]

“Life is fair. We all get the same nine-month shake in the box, and then the dice roll. Some people get a run of sevens. Some people, unfortunately, get snake-eyes. Its just how the world is.”
― Stephen King, Full Dark, No Stars

Cheers

 

[WinniWoman]

Yeah! and they ruined things for the men and women who didn't want women to have the right to vote, or the right to own property, or decide who and when to marry, or not, and on and on...

It's a sarcastic joke I was making and that we make at work. I am not talking about the right to vote or own property. Heck- that stuff was way before my time!

Did you read the book "The Two Income Trap", by Elizabeth Warren and Amelia Warren Tyagi? That is more in line with what I am getting at.

 

[WinniWoman]

mpumilia, I get that you don't want to work, I feel that way myself more often than not. But I like to eat, travel, shop at Costco and have children who need financial help, so it's off to work I go. Having a job or work you like goes a long way towards life satisfaction. Since changing paying jobs in middle age is pretty difficult perhaps you could look at doing the following,
if you already haven't:
1. working a little less, e.g. 80%, 4 days a week. Since your health insurance is thru your husband that's less a factor for having to be FT.
2. telecommuting, 1 day a week, if your job position and employer allows.
3. car-pooling, part ways perhaps, with someone else
4. taking a class in something that interests you
5. getting that dog

Lol! Middle age? I am past middle age at almost 60! ha! ha!

What you say is exactly why I (and most mere mortals) muster up the strength to keep working!

Can't car pool or telecommute, as my work involves driving all day- with my own car. Ugh!

No time for classes and that would involve more driving after work- I can't even keep my eyes open! Don't need a class anyway; I occupy my free time just fine. I have a varied amount of interests.

Don't get me going on the dog thing....Am waiting until we retire as no one home all day and doing home remodeling right now. Plus, too much in the winter with working and having to take the dog out and so on. I know- had dogs all my life. Want one, though.

Part-time work might be a possibility to ease into retirement financially speaking. I used to work from home and I loved doing so, so that is something I would look into bat some point.

 

[WinniWoman]

This looked better in my Excel spreadsheet.

It shows that a couple that earns $80,000/year after tax and manages to save $12,000/year of it, investing the savings at a meager 3%/year over their 35-year working life, will have saved enough to withdraw $48,000/year during 20 years of retirement.

Maybe it's a two-earner couple: One of them earns $75,000/year pre-tax or $55,000 after tax. The other earns $35,000/year pre-tax or $25,000 after tax.

Half of the second earner's take-home pay goes into the expense budget, and half goes to fund their retirement.

That's with nothing from social security.

Working Year
Earn After Tax / Save / 3% growth
1 80,000 12,000
2 80,000 12,000 24,360
3 80,000 12,000 37,091
4 80,000 12,000 50,204
5 80,000 12,000 63,710
6 80,000 12,000 77,621
7 80,000 12,000 91,950
8 80,000 12,000 106,708
9 80,000 12,000 121,909
10 80,000 12,000 137,567
11 80,000 12,000 153,694
12 80,000 12,000 170,304
13 80,000 12,000 187,413
14 80,000 12,000 205,036
15 80,000 12,000 223,187
16 80,000 12,000 241,883
17 80,000 12,000 261,139
18 80,000 12,000 280,973
19 80,000 12,000 301,402
20 80,000 12,000 322,444
21 80,000 12,000 344,118
22 80,000 12,000 366,441
23 80,000 12,000 389,435
24 80,000 12,000 413,118
25 80,000 12,000 437,511
26 80,000 12,000 462,637
27 80,000 12,000 488,516
28 80,000 12,000 515,171
29 80,000 12,000 542,626
30 80,000 12,000 570,905
31 80,000 12,000 600,032
32 80,000 12,000 630,033
33 80,000 12,000 660,934
34 80,000 12,000 692,762
35 80,000 12,000 725,545
retirement year
spend
1 48,000 699,311
2 48,000 672,291
3 48,000 644,459
4 48,000 615,793
5 48,000 586,267
6 48,000 555,855
7 48,000 524,531
8 48,000 492,267
9 48,000 459,035
10 48,000 424,806
11 48,000 389,550
12 48,000 353,236
13 48,000 315,833
14 48,000 277,308
15 48,000 237,628
16 48,000 196,756
17 48,000 154,659
18 48,000 111,299
19 48,000 66,638
20 48,000 20,637

Thanks, Conan! This is great. I have to get a financial planner this year.

 

[Conan]

"The Two Income Trap", by Elizabeth Warren and Amelia Warren Tyagi? That is more in line with what I am getting at.

Book review here:
http://www.newyorker.com/magazine/2014/04/21/the-warren-brief

 

[am1]

Do most people nearing retirement feel this way? Posts on this thread are good reason not to hire people nearly retirement or to keep them employed.

 

[dsmrp]

Can't car pool or telecommute, as my work involves driving all day- with my own car. Ugh!

Don't get me going on the dog thing....Am waiting until we retire as no one home all day and doing home remodeling right now. Plus, too much in the winter with working and having to take the dog out and so on. I know- had dogs all my life. Want one, though.

Too bad you can't bring a dog to work. Since you're using your own car, a dog would be a good driving companion. Some tech-y companies do allow that. I interviewed for a job at Amazon about 15 years ago, and many of them had dogs at their desks. I thought strange at the time, but overall culture wasn't for me.

 

[pedro47]

One key to having a good retirement is to start saving early. Also, you need to invest into a good ROTH account with a low expense ratio.

 

[isisdave]

Musings

I do think that the fact that two-earner households are now the norm has pushed costs up. It's just supply and demand ... a family who is willing and able to pay twice as much will be able to find a way to do that.

When I was a kid 50 years ago, 1500 square feet was an ENORMOUS house, and electronics were relatively expensive, so one TV was standard. Moms rarely worked. They did lots of volunteer work and organized things like community theatre. Child care wasn't an issue because they could stay at home. An illness could be managed more easily. And there was huge pressure to stay married, because most women were economically dependent.

But now standards are different, and families want big houses and lavish vacations and roomfuls of electronics. Still, settling for smaller places in not-so-expensive locations would let most families get by with one income, at least some of the time.

Or course things are different now; there wasn't "outsourcing" then or sending jobs abroad, and a lot more work was done manually. The lack of predictability (and pensions!) has really had an effect.

If you're looking at the bottom for my solution, I'm sorry ... don't have one. We were lucky, had about 1.6 jobs at a time averaged over 40 years, and are embarking on a modest retirement with hopefully adequate resources.

Here are a couple of planning tools I've found useful:

http://www.flexibleretirementplanner.com/wp/

http://www.firecalc.com/

and good input from http://www.early-retirement.org/

all of which will help you think of Social Security as the frosting on your cake.

 

[VacationForever]

Do most people nearing retirement feel this way? Posts on this thread are good reason not to hire people nearly retirement or to keep them employed.

No. I want to keep working, even into my 80s if health and husband permit. Husband ready to retire but I want to work.

 

[x3 skier]

Do most people nearing retirement feel this way? Posts on this thread are good reason not to hire people nearly retirement or to keep them employed.

Retired 17 years ago and very very happy about it. Lots of IRA and 401k savings I don't really need, live in the same house that was paid for many years before I retired, part time work just for something to do, travel where and when I want to, spoiling grandkids, etc, etc, etc.

Life is better than good.

Cheers

 

[bogey21]

Do most people nearing retirement feel this way? Posts on this thread are good reason not to hire people nearly retirement or to keep them employed.

No. I worked between 10 and 12 hours a day until the day I retired. I actually wondered if I would be able to adjust to being retired. Answer is that it took all of 24 hours.

George

 

[Helaine]

I have been lucky. I've done work I love most of my life, so I was in no hurry to retire. Seeing all the traveling people do here is making me consider it though.

 

[Helaine]

No. I worked between 10 and 12 hours a day until the day I retired. I actually wondered if I would be able to adjust to being retired. Answer is that it took all of 24 hours.

George

I've worried about that too! Good to know.

 

[x3 skier]

No. I worked between 10 and 12 hours a day until the day I retired. I actually wondered if I would be able to adjust to being retired. Answer is that it took all of 24 hours.

George

Same for me except I never even thought about needing to adjust. My wife was worried about my adjustment but not me.

Three days after I retired, I was in Steamboat Springs, had a place to live, a season ski pass and was on the mountain skiing. It would have been sooner but it took two days to drive there. :whoopie:

Cheers

 

[vacationhopeful]

Same for me except I never even thought about needing to adjust. My wife was worried about my adjustment but not me.

Three days after I retired, I was in Steamboat Springs, had a place to live, a season ski pass and was on the mountain skiing. It would have been sooner but it took two days to drive there. :whoopie:

Cheers

Where was the wife? Still working or with you skiing?

 

[x3 skier]

Where was the wife? Still working or with you skiing?

She came with me having left her job several years previously. She worked because she enjoyed it, not because she had to and stopped working when she wanted.

Cheers

 

[WinniWoman]

Too bad you can't bring a dog to work. Since you're using your own car, a dog would be a good driving companion. Some tech-y companies do allow that. I interviewed for a job at Amazon about 15 years ago, and many of them had dogs at their desks. I thought strange at the time, but overall culture wasn't for me.

Gosh! I would love that! When I worked at home (also had to drive all over on that job, but had a home office) and had my dogs by my side it was wonderful. Best of both worlds- I could throw a load of laundry in and start dinner while I worked on my computer. Heaven for someone like me- as far as jobs go.