Reducing expenses in retirement

[Beefnot]

I do not want cremation, and I want a viewing. I want folks to see my body and wail loudly.

And if they don't, you'll never know.

D'oh. I guess you're right.

 

[RX8]

when you vist Florida and shop at Publix, you will note the the average age of the bag boys is about 75. These are the guyes that cant afford to retire

I am in my 40's with a six and two year old. I guess I will be working forever.

Ron, be sure to say Hi to me as I put your butter and milk in the bag for you.

 

[Tia]

At our local mall there are several older ladies working the cash register at various stores, look to be in their 70's. The way things are going might be a new trend lots of places.

 

[gpurtz]

During our recent trip to Disney World my wife and I remarked about the number of cast members in their 70s/80s. Some certainly appeared to be enjoying their work, others...not so much. I feel sorry for anyone who is over 65 and working because they have to.

 

[MelBay]

I'm 55, DH is 59. He took early retirement a couple of years ago, and now works for the same company on a part-time basis as a consultant. It's just enough to keep him busy, and he can come home in the afternoons and putz.

I have been with the same company for 28 years and work from home, and will probably stay at it for another 4-5 years, if they'll have me. We still have retiree medical coverage, and I hope that holds out for a while. They cut it off a while back, and luckily I had been there long enough to stay in that magic window.

Our house is paid for, no debt of any kind, our 401(k)s look pretty good again and I'm putting away the max allowed each year. I feel pretty darned blessed now that I see all this on paper.

My father left me some real estate, and let me just say to everyone: If you love your children, you won't leave them real estate of any kind. In fact, I feel so strongly about this that when we're a little older we will take out a reverse mortgage, squirrel the $$ away, and when we head for the big timeshare in the sky, the bank can come take the house and the kids won't have to fret over it like I've had to.

This is a great discussion, and it's been fun to read everyone's plans. We are a savvy bunch!

 

[spencersmama]

In fact, I feel so strongly about this that when we're a little older we will take out a reverse mortgage, squirrel the $$ away, and when we head for the big timeshare in the sky, the bank can come take the house and the kids won't have to fret over it like I've had to.

You'd be better off selling while you are alive and living in a rental. Reverse mortgages rip you off with a high interest rate, so you only end up with a portion of the value of the house. Personally, it would be more upsetting to me for my parents or in-laws to make unwise financial decisions and run out of $ while they are still alive than to sell real estate and other property later.

another hint - long term care is very expensive. Look at getting insurance for it.

 

[MuranoJo]

Great thread and good nuggets in here. A few comments to some snippets as I think of early retirement myself:

3. Shelling a few $$ to improve energy efficiency, reducing utility payments.

Great advice. We've looked at getting big ticket items out of the way and were heating our home with propane (as Greg did), just due to the situation at our location. Got a thermal heat pump set-up about a year ago and we're closely tracking the major reductions we're already seeing.

It's the unknowns that keep DH employed. Even though the house and cars are paid for, repairs come up. Repairs can cost tens of thousands on a house.... Just don't forget inflation in general.

Definitely a consideration and what keeps me hanging on, though I so want to join DH who took early retirement a few years back. I'm just nervous about what may crop up. Though I would have retiree med today, who knows if they'll pull the plug tomorrow, and I'd have several years to go to get to Medicare. I'm hoping for an early retirement package offer, but doubt it will happen.

My instructions are no service , no casket, no viewing, etc. On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.
George

This is where I'm leaning, although my family and friends are funny about it. I told them they can plan their own funerals.

 

[MuranoJo]

another hint - long term care is very expensive. Look at getting insurance for it.

Absolutely, and I've heard it's best to get it in your 50's when it's less expensive.

 

[Htoo0]

Absolutely, and I've heard it's best to get it in your 50's when it's less expensive.

Not so cheap even then. IMHO. (We recently purchased LTC insurance.) We too are looking at retirement 5-8 years. But it's the health care costs which are the unknown. Obamacare or Nobamacare? What will the costs be whichever occurs? This isn't intended to be a political statement, just that we don't know and can't really plan until the changes are settled. All we know to do is stay out of debt and send the money we could be paying for a nicer home and/or car to retirement savings. Here's hoping it works out for all of us.

 

[MelBay]

another hint - long term care is very expensive. Look at getting insurance for it.

We've had it for about 15 years. DH's employer began offering it & for the initial cost we just couldn't pass it up. It's through John Hancock, and even at our age, the premiums are still ridiculously low so I really feel lucky to have it. I hear friends talking about quotes they've received and I refuse to divulge what we pay. :ignore: They'd kick us. I think in all the years we've had it, the total of all premiums paid to date would just cover one month in a nursing home. Well worth it, even with their recent "adjustment".

If you can get this insurance through your employer, jump on it.

 

[suzanne]

I retired at 62 couple of years ago from BJ'S Wholesale Club. My biggest worry was health insurance. DH had forced retirement at 55 as his company closed down. He is 67 now and is on a Medicare Advantage Plan, which is very good and I will enroll in the same plan next year when I'm eligible fore medicare. I have Humana One for coverage now. Its $5000 deductible with $10,000 annual out of pocket. I have 6 visits a year with just my co-pat of $35. I hope I don't need anything major til I reach medicare next year. Every area is different for cost and plans but you can go on their website enter your zip code and hey will give a list of the plans in your area and cost. This way you will have an approximate idea of what your health insurance coverage will cost. As others have posted, you need to be virtually debt free. Every day cost of living goes up but your income doesn't when your retired.

As for the 70 to 80 year olds still working, alot of them have to just to make ends meet but others do it to just stay active and involved. Some do it part time to have extra money for paying for vacations, cruises or extra things. We had quite a few at BJS in all catagories. I applaud companies that hire Senior workers.

I am enjoying my retirement, but know I can't just go out and spend like I used to.

Suzanne

 

[MuranoJo]

If you can get this insurance through your employer, jump on it.

Actually, that's what we did about 4 years ago, and ours is through John Hancock, too. Great price compared to what I hear others are paying, so we feel very, very lucky to get the group rate. Only hope it continues after retirement.

 

[puppymommo]

And if they don't, you'll never know.

We are really leaning away from the traditional funeral. People have no time to think rationally and spend way more than they can afford.

I'm a pastor and have conducted many funerals in over 20 years of ministry. Had one today. In my opinion and experience, funerals/memorial services are for the living, not for the deceased. But it helps the family immensely if most if not all details are arranged/discussed ahead of time.
It also helps prevent the family from getting pressured into expenses they neither need nor really want.

Personally I prefer direct cremation -- no embalming, no viewing. A memorial service/celebration of life can take place at any venue (place of worship, community center, park, etc) at a time convenient for those who wish to gather. I've had memorial services (like a funeral but without the body/casket present) take place 6 months or more after the death, at a time out of town family can gather.

When my stepmother died, she was adamant about no service. So my siblings and I (and our families) joined our dad for dinner at her favorite restaurant. Her ashes were later scattered on a mountain side (her choice).
My MIL, on the other hand, buried FIL's ashes in her backyard.

There is no right way to deal with death and grief issues. Ignoring is probably the worst.

 

[Conan]

Getting back to the original question, as I'm near retirement I've been using http://www.mint.com to track expenses. It makes it easy to see where the money goes, so I can anticipate what expenses are work-related and what are ongoing.

Frankly I don't think there's going to be any real reduction in how much I spend in retirement (after tax, since most of the income taxes will go away). The Medicare, Medicare supplement and drug plan premiums will be paid from my Social Security checks, so for planning purposes I just value my anticipated Social Security income at the net amount.

We'll be living in the same house, and I expect that whatever commuting and lunch-at-work expense I save will just be redirected to recreation.

 

[Sandy VDH]

I guess I would have to move back to Canada and get their health insurance if things came to that.

In my late 40s I am having an issue finding insurance as I have a pre-existing condition that prevents me from purchasing nearly any insurance policy. I am going to have to find some TX state group policy.

I am very worried about retirement. I feel I need much more. I guess I better get going, and need to start socking it away while I am working on a good paying contract.

 

[CarolF]

My MIL, on the other hand, buried FIL's ashes in her backyard.

Just make sure YOU know where MIL has buried FIL's ashes (I do hope your MIL doesn't experience dementia).

I recall standing, garden fork in hand, explaining to Mummies gardener "I need to find Daddy, he is buried here somewhere".

 

[puppymommo]

Just make sure YOU know where MIL has buried FIL's ashes (I do hope your MIL doesn't experience dementia).

I recall standing, garden fork in hand, explaining to Mummies gardener "I need to find Daddy, he is buried here somewhere".

Actually, neither MIL nor DH particularly care where FIL is buried, that's why she did it! As a veteran, he could have been buried for free at a miliary cemetary, so it wasn't a matter of money. She had been married and divorced once before and she had promised she would not get divorced again. So she stayed with him for better or for worse, and there was a lot of worse.

One of the more amusing anecdotes was the time he tried to defrost the freezer with a blowtorch.

 

[classiclincoln]

I would strongly recommend that anyone who is serious about retirement work with a Certified Financial Planner (full disclosure; I happen to be one). Don't just work with a stock broker, insurance agent or anyone else who calls themselves a "financial advisor" or "financial planner". Make sure they are a practicing CFP. Go to http://www.cfp.net/ and find one close to you. There is a lot of advice given here that I call "advice from the water cooler". I can't tell you how many times I've had to try and clean up that mess....

You should be prepared to pay a fee for the advice (separate from any investment fees), but it will be well worth it; you'll get accurate advice based on your personal situation, not that of someone else's.