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Preparing for retirement

talkamotta

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Who has read any of the Dr. Oz books.

After going to Canada and hiking everyday, I am on the "Keep Active" kick. I have always been a busy person but Im stepping it up a notch. It felt good to go hiking. My boyfriend, who is retired now and is pretty much a couch potato said he felt real good and things quit aching while he was on the trip. So now I have a partner. I dont think I will ever be a couch potato but I know others who have retired that did or close to it.

Another book Im reading is "Younger Next Year". Ive only been reading it for a few hours. It talks about how our lives change when we retire. How to plan for it. Exercise, Eat healthier and Committment. Committment is not about the exercise and eating its about being passionate about something. Probably to keep your mind and body busy.

Im going to be retiring (hopefully) in 2 years. Ive been doing the timeshare thing with that in mind, I love my garden and want to get into that further and of course there are projects around the house that will need to be done.

What advice, or things you have done, or plan to do to prepare yourself for retirement.
 

lprstn

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Well....I've got about 20 yrs to retire..but still planning

Some things I planned, hope they work, and hope to do are

- Save/save/save
- Find job/business I can work part-time/seasonal or from the road - as I don't really ever seeing myself not being involved in something...and even better if I get health benefits and pay for it. Luckily the industry I work in and my current part-time endeavor allow me to do this transition easily. With my current part-time teaching job, I can sign on with several schools and teach online from anywhere in the world. Also, have my mortgage lender license and am an engineer full time (with 4 kids)...ok...I know it appears that I am a work a holic but everything for work is flexible. - also i have co-workers now that only work 3 times a week in order to keep their benefits of 401K/health/life insurance etc..(at least the husband still works ...while the wife gets to officially retire - hopefully my DH likes that idea)

- purchase a property to rent out now that I would want to retire in later. That way when I have the kids out of the house I can move into a property that was pretty much paid off, by someone else. Currently I have 2 of these and desperately am trying to get rid of 1 as its hard to get and keep reliable renters.

- save/save/save ... I and DH have max our 401Ks, started paying off credit card debt by taking out a personal loan on the amount (a whopping 20K bill do to rental property issues - don't ask) to pay off in 2 years, while we did pay off a car we have, I still pay that monthly payment to a savings account.

We try very hard to live BELOW our means, so I don't ever get a new car, I purchased a used car that doesn't cost more than $18K and those cars usually last us about 7 to 10 years.

We also, never get a new car until the car that we have a carnote on is paid off. If we do, its a cheapo car that we pay for out right until we can afford another carnote.

As far as the major bills, like our kids college, we offered to only pay for instate tuition for 2 years, they can live at home. If they want more, they have to work for it by getting good grades, applying for scholarships, and extra curricular activities that may lead to scholarships. College is a privilege not a right so they have to do their part.

- Purchase a TS as a winter home (resale preferably) and learn when to stop buying them...boy its addictive!!!

That's what we are planning on doing and have done so far. Been learning a lot here on TUG...this is a great resource.
 

Fern Modena

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The main thing I did was financial, not physical. Starting about three years before I retired I upped my 457 contribution (sort of like a 401K but for Government employees) and my credit union contribution so that I had about $800. less a payday to live on. This was a drastic cut, but I figured that besides the added savings for retirement it would get me used to doing with less. It turned out to be a good idea; I was able to retire at 52-1/2, instead of the 55-58 I had originally planned on.

Fern
 
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Fern, that is a great idea about upping your retirement savings ahead of schedule.

I am "only" 54, but I have a long mental list of things I want to start doing when I retire or at least go part time. Bird watching and photography are both on the list. Working in animal rescue, possibly at the Golden Retriever rescue where we got our dog, is another possibility. More time for cooking and experimenting with recipes and stuff, maybe starting an herb garden (though I do have a notoriously black thumb). Never thought I would be looking forward to retirement, but I am! :D
 

Mimi

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I just celebrated my one year retirement on August 1st. I retired from school social work at 62 and receive SS and a teacher's pension. DH retired in 2000, and also receives TPAF and SS benefits. We both have IRA's, some stock and other savings. I purchased a new car last year and DH purchased a new car this year using cash. In 2007, I purchased 7 weeks of timeshare on eBay to go along with the 6 timeshares we already had. We are still not interested in points. We spend at least 6 weeks a year in Hawaii, at least 4 weeks in Florida and 3 weeks in Las Vegas. We use the weeks we own and no longer rely on trades, or shell out trading fees to RCI or II. If we do decide to deposit one of our timeshares, we use Trading Places, who give us bonus weeks and consistently provide extra accommodations in Hawaii. Last year we used our deposited and bonus weeks for trips to Aruba, Barbados, California and Waikiki. We have lived in the same home for 35 years. Our mortage is paid off and we have no bills, other than taxes, insurance and utilities. We pay for everything on credit to accumulate air miles and pay off the balance each month to avoid service charges. We are still getting airfare alerts, despite the fuel crisis and always use FF miles to Hawaii. We also consider the perks of getting bumped, since our vacations are extended. Travel deals are my passion. We have three adult children and five awesome grandkids, who all live in Ocean County, NJ. They have all vacationed with us in Hawaii, Florida and Vegas. We are blessed! :whoopie:
 

suesam

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A fun read on this topic is " The Joy of Not Working" or "How to Retire Happy, Wild and Free" by Ernie Zelinski. They are inspirational, fun, easy read books. They really do not talk about finances much but the other aspects.....leisure, mental and physical well being, happiness and fun!
Retirement is a LONG way away for me but the "Joy of Not Working" is for younger people who just do not want to work any longer, maybe take a sabbatical, etc.

Sue
 

"Roger"

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I just joined the ranks of the post employed. I spent my last year eyeballing volunteer opportunities. It is a bit like going through a career change. You sit there wondering what skills you have that are worth something.

To date, I have been working with a naturalist organization helping resusitate a neglected river bank area with an eye toward turning it into a city/county park. (Noxious weed elimination, trail building, putting together a bird list, etc.) I also volunteer at the local blood drives. Come winter, I'll have to add another activity.

The idea is not to fall back to full time work, but to have something fulfilling to do once or twice a week.
 

Fern Modena

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I agree; to that end I am a volunteer and officer with our Community Service Club. Besides keeping records I give others rides to the doctors and the like. Its not just people who don't drive; in some instances you are having a test or "outpatient surgery" where they won't allow you to drive afterwards (and you have to be released to a "responsible person," which they don't define as a taxi driver). I've found this very rewarding, and I've met some very sweet people this way. Besides, it is a way of "paying it forward." On two occasions when Jerry wasn't able to change our furnace filters (they are in the ceiling and must be changed four times a year), a volunteer from another part of this club changed them for me.

I'm also a mentor/monitor at our Computer Club, and work/volunteer there twice a month. In addition I am a member of our Women's Club, a village club (where I arrange the gatherings for the three summer meetings) and Red Hat Ladies.

Jerry is a videographer and editor for our local access television station. Besides shoots and production meetings, he also is a (volunteer) teaching assistant for video editing at the Computer Lab.

That all is in addition to the "Ladies do lunch," and going out to shows, meeting TUGgers, etc.

Its a full life, and compared to some of my friends I just sit around all day.

Fern

The idea is not to fall back to full time work, but to have something fulfilling to do once or twice a week.
 

lprstn

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Oh, by the way...I still have 22 years till I retire @ 60yrs old, hopefully all goes as planned :D , and DH will retire @65yrs.
 

talkamotta

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Society should pull from the "baby boomers". My parents worked hard and saved (depression children) and then died. People in my age group 70-45. We have worked hard and saved but arent going to die (at least not as young). We have alot to give in the last 3rd of our life. I am much more patient, hopefully wiser, and I dont get stressed easily and I dont think everything should be done in a hurry.

Im not rich but do ok. I love paying for yearly National Park passes because I see what they do and how it helps to give access to those less fortunate than myself. I love watching children; seeing the world through thier eyes. I remember how busy I was when my kids were young and I want to help relieve some of thier stress, so they dont miss out on the important stuff.

I think alot of us are willing to work part time or occasionally at something that gives us joy. Money isnt the main incentive but self satisfaction.
 

Liz Wolf-Spada

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I would love to work for DAE or something connecting people with vacations, something fun, but I don't want to be committed to something that gives me less vacation time than I have now. I currently teach, so I do get time to travel. I would like to find work that is part time and has insurance benefits so I could stop teaching in a couple years when I'm 61.
Liz
 

bogey21

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One of the things I think everyone contemplating retirement shoud address is whether they want to leave an estate. I chose not to and plan to spend everything. My ex-wife is set getting $6,000 per month for life out of my pension. My kids (now 38, 30 and 29) and I agreed a long time ago that I would support them until 21; would pay for all education regardless of their age; and that I would buy them each a new car. Otherwise they know there will be nothing left for them when I die. Knowing the deal upfront has encouraged them to start building their 401-Ks, etc

GEORGE
 

rschallig

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Health costs

For those really planning for retirement, a heads-up on health care costs. Not many people have life-long health benefits when they retire.

Medicare covers only 51 percent of expenses associated with health care services. Therefore, people need funds to pay their portion of medical expenses. Fidelity Employer Services Company predicted in March 2008 that an average 65-year old couple needs an estimated $225,000 to cover health care costs in retirement which is up about 40 percent from 2002. The Employer Benefits Research Institute reported that an even larger amount was required. A couple, both age 65, today living an average life expectancy could need as much as $295,000 to cover premiums for health insurance coverage and out-of-pocket expenses during retirement. A couple who lives to age 95 could need as much as $550,000. Also, add the premiums for long term care insurance. A new study from Fidelity Investments estimates a 65-year-old couple will need an average of $85,000 to cover long-term-care insurance throughout retirement.

People should also plan more aggressively for expected cost-of-living increases. This is a considerable challenge since people are living significantly longer than in the past. A modest average inflation rate of 3% during a projected 30-year retirement could cut real purchasing power in half in roughly 25 years. Inflation is much more threatening to retirees because most will see their cost of living rise faster than the nation’s average rate of inflation. The U.S. Department of Labor statistics show that people 65 and older spend about 13% of their household budget on health care, including insurance premiums, or more than twice the national average. Considering that health-care inflation grows twice as fast as overall inflation that can significantly impact retirees. Given all this, some retirement planning experts recommend that retirement plans should factor in cost-of-living increases of 5% to 7% a year.

Given the above costs alone, I can see why many people delay retirement or continue to work part time in retirement. I am a retired educator and enjoying a part time job for the enjoyment, challenge and extra income.
Bob
 

Liz Wolf-Spada

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Bob, what are you doing as part time work? I am not yet a retired educator, just a full time one, but I'm thinking a few years ahead.
Liz
 

caribbeansun

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:eek:WOW! Those are stunning numbers!:eek:

Fidelity Employer Services Company predicted in March 2008 that an average 65-year old couple needs an estimated $225,000 to cover health care costs in retirement which is up about 40 percent from 2002. The Employer Benefits Research Institute reported that an even larger amount was required. A couple, both age 65, today living an average life expectancy could need as much as $295,000 to cover premiums for health insurance coverage and out-of-pocket expenses during retirement. A couple who lives to age 95 could need as much as $550,000. Also, add the premiums for long term care insurance. A new study from Fidelity Investments estimates a 65-year-old couple will need an average of $85,000 to cover long-term-care insurance throughout retirement.
 

pranas

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I would love to work for DAE or something connecting people with vacations, something fun, but I don't want to be committed to something that gives me less vacation time than I have now. I currently teach, so I do get time to travel. I would like to find work that is part time and has insurance benefits so I could stop teaching in a couple years when I'm 61.
Liz

Run for public office. You can work part-time and get full benefits.
 

rschallig

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Bob, what are you doing as part time work? I am not yet a retired educator, just a full time one, but I'm thinking a few years ahead.
Liz

Liz. Check out websites such as : http://www.retiredbrains.com/ A Job and Information Source for Retirees & People Planning Their Retirement. Also, check out your local college’s or school district’s career center and take a career interest inventory test. (Myers-Briggs). This is also a good time to take an assessment of your occupational skills and the transferability of those skills. Have fun exploring.
Bob
 

Passepartout

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1/4 mil + for health care....

:eek:WOW! Those are stunning numbers!:eek:

They are. It's one serious consideration for those of us whose residence is on this side of the border, or pond, for that matter. This one issue may force many US seniors to postpone retirement.

But to take those numbers apart a little. That figure is for a couple, not one person. And nobody is going to look to see how much you have, or ask for those 6-figures as a premium before you are allowed to age. While it isn't designed to cover all of a citizen's health care cost, Medicare (for us US residents) will cover a lot of the day-to-day stuff. Absolutely, everyone needs additional coverage to pick up the uncovered excess.

For retirees who have accepted that they have had to save and invest additional funds for retirement. Those who have paid down- or off- their primary residence, have known that the government will- no, cannot provide 100% of a comfortable retirement, and are in perhaps better-than-average health, will be fine.

Jim Ricks
 
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