OT: when to retire

[MoodyBluesKeys]

I guess I'm an outlier. 78 now, and still not fully retired. But - there is a difference. I operate my own business, in computer networking and services. It doesn't generate a lot of income, but helps out with the Social Security coming in. I don't work a large number of hours (in fact, need one or two more commercial clients), but the income helps (legally) pay for some bills that would be there anyway for the most part.

 

I still enjoy it. My wife is 6 weeks younger than myself, she is a retired RN, was teaching at the community college, still does some subbing, but doesn't want to teach every day. Between the two of us, there is enough income to keep things paid. Home and cars all paid for.

 

If I did completely retire, there would be the question of just what to do to occupy time. I'm sure I'd come up with something, but things like extensive travel aren't really practical for both income and health reasons. Kids all grown and independent, so just occasional loans which are usually paid back soon.

 

I got out of the corporate maze in 2003, axed along with hundreds of others on a very large government project (40% of folk on the project had to be with what they call Small Business Subcontractors, and they were hiring lots of folk then at much lower pay scale). Found out quickly that no one in area was really interested in a 61 year old. Moved to small town from the Tidewater, VA area. Went in as required to enroll in Medicare, found out I could start drawing SS at any time, and there would be 19 years before the money total would be less - seemed like a good thing, so I did it. Running a business, I could easily come up with legal and usable ways to spend enough $$ to keep the profits below the threshold where the government would have reduced the SS check, until I reached the age where it didn't matter.

 

Don't really know how to advise you, Dan; but put a good bit of thought into your alternatives before choosing any of them, since the corporate position you hold now won't likely be available again if you do quit. Your responsibilities to the kids may just necessitate hanging in where you are for a bit longer.

 

[J. Dan]

I'm only 48 now and couldn't do anything for quite a while no matter what. But if I DID end up wanting to retire early, I need to be preparing now.

 

There are a number of other things I could do that may or may not supplement income, but that I would enjoy filling my time doing. I used to design and build little custom electronics projects when I was just out of college. I think it would be fun to produce some boutique modular synth modules, guitar pedals, etc. I also would enjoy putting together a studio that was at least good enough for local acts to record, and maybe even do some onsite live recording. So I think I could keep myself busy.

 

If I retire at 65, 15 years would put me at 80. I really don't think I'll live that long and if I do, I won't be able to do a lot of the things I would want. It has nothing to do with healthy living, but more genetics and family history. My dad passed at 74, his brothers at 72 and 80. My mom made it to 80. I'm Type I diabetic which statistically shortens your life, though I have it under control. Take medication for high blood pressure and high cholesterol - all genetic. I'm in good shape - 5'11" 167lbs, eat healthy. It just is what it is. My dad didn't retire until 69 and only lived another 5 years.

[cphollis]

 

 

 

Third big call: set up reliable retirement income. I'm a big fan of the S&P500 index funds as a set-and-forget source of equity growth. Yes, it catches cold once in a while, but (historically) it always gets well and continues to perform. But that's not reliable income.

 

 

Fourth big goal: know your numbers. I have lots of spreadsheets, and enjoy building models. I have 4-5 models that I keep updated. One is a short-term budget for our first few years. Another is a time-series budget to try to capture how our expenses will change over the next 30 years (travel, healthcare, etc.).

 

One spreadsheet capture current investments. A linked one captures growth over time giving reasonable assumptions. Another one is my doomsday scenario: recession, hurricane damage, etc. And a few more spreadsheets that provide deeper modelling on the dynamics of the real estate portfolio.

 

Subtract the long-term expense model from the long term investment/income model, and there you have it.

 

 

 

I also have my retirement in a Vanguard S& P Index fund. It is a reflection of Corporate America. I believe

these large corps will always strive for growth. So its a good place to park your $$. I don't gamble

with individual stocks as I suck at it.

 

I am also a spreadsheet geek. I like to analyze and work the #'s. I have a 25 year model.

 

Not everyone has this necessary skill. I have helped friends over the years with setting up retirement planning.

Many folks fail at self sacrifice and planning and investing.

 

Health care cost is the biggest unknown. I test/update my assumptions every year.

 

I have the kick back life. My wife will retire at 60. She is prepared to go 61, but we

are pushing for 60. Health care and future quality travel are the biggest factors.

 

Retire as early as possible. We never can be sure what will happen to us.

 

Agreed. Life can be short. This is not a dress rehearsal.

 

That being said, plan for the best life you can live.

 

My personal irritation is "financial advisors". My models spank theirs every time. I capture macroeconomic dynamics they all miss. Impossibly simplistic, IMHO. I'm a geek, what can I say? And I've been right a whole bunch of times.

 

I listen to their pitch, and then fire back. Whoa, that's not on their script! Maybe I'll document all this before long, as a pay-it-forward gesture.

 

Financial advisors tend to play off of insecurity. I'm incredibly confident with what I've put together, and I've got the data to back me up. And they're left gasping as a result. OK, maybe I crash and burn, but I'll go down with pride!

 

That being said, I've found a financial adviser who is completely contrarian to my perspective. She puts up good arguments, so I give her a portion of my portfolio. She wants my whole enchilada, which is not going to happen without proven results. She's super bright, but I frustrate her.

 

Seriously OT, but there you have it.

[Adan]

I feel like I've been transported to a golf or yachting forum. Hanging out with musicians generally means hanging out with people who don't spend a great percentage of their time thinking about retirement. Other than setting up a 401(k), I never gave it a thought. When I got married, someone else took over that department, and I still never give it a thought.

[Song80s]

[quote

That being said, plan for the best life you can live.

 

My personal irritation is "financial advisors". My models spank theirs every time. I capture macroeconomic dynamics they all miss. Impossibly simplistic, IMHO. I'm a geek, what can I say? And I've been right a whole bunch of times.

 

I listen to their pitch, and then fire back. Whoa, that's not on their script! Maybe I'll document all this before long, as a pay-it-forward gesture.

 

Financial advisors tend to play off of insecurity. I'm incredibly confident with what I've put together, and I've got the data to back me up. And they're left gasping as a result. OK, maybe I crash and burn, but I'll go down with pride!

 

That being said, I've found a financial adviser who is completely contrarian to my perspective. She puts up good arguments, so I give her a portion of my portfolio. She wants my whole enchilada, which is not going to happen without proven results. She's super bright, but I frustrate her.

 

Seriously OT, but there you have it.

 

I agree and you are right. Some of these financial 'advisors ' are vultures. When I met my wife, she was entangled

with a slick talking advisor. He was terrible, so much BS. It took 3 years to get his sweaty fingers

out of my wife retirement funds.

 

IMO, we don't " OT discuss " investments and retirement planning at all. Many things are put on the OT discussions.

 

I don't believe its easy to fund retirement on meager band/gig income. Folks invest huge amounts in gear.

 

So their are forces opposing retirement planning and funding for many. And its personal. Money tends to be

more personal. We have no problem discussing physical health issues, in contrast.

 

For sure, there is a large group of helpful and experienced keyboard musicians.

 

[Bill H.]

I feel like I've been transported to a golf or yachting forum. Hanging out with musicians generally means hanging out with people who don't spend a great percentage of their time thinking about retirement.

 

The thread started with the best of intentions: Questions about retiring early (and sacrificing lifestyle) so you could concentrate on playing music. Apparently no one in the forum wanted to talk about that, so it took a different direction.

 

My own reduction in day income was not by choice, so I began making money in clubs that I would have never imagined 15 years ago. But that's not on topic either.

 

[RABid]

I retired three years earlier than I originally planned. Reason, the job place turned to crap highlighted by the fact that my boss had an affair with my assistant. What a mess. Money is tight for now but when SS kicks in I will be good. On the positive side, I have not had a migraine headache since I retired. Also, I'm down to taking 1/10 of the allergy medicine that I was taking while working. Being away from perfumes, scented candles, and essential oil misters in the office place has done wonders for my allergies. I'm also much more relaxed. And the hobbies. I have so many hobbies going. Everything from learning new musical instruments to skate board. Yes, at 59 I bought a long board cruiser. No tricks. Just cruising. At my age the hard part is not riding a skateboard. It is hopping off at the end of the ride.

[Steve Nathan]

I assume you mean retiring from your day job and having more time for music. For folks who's day job is music, it could be argued that playing music will get you through no money better than money will get you through no music! Those that fall into this category almost never retire.

[Iconoclast]

It really depends on your work. I enjoy my job and don't work that much so I'm really not planning on retiring early even though financially I could.

 

Most of my contact with people who aren't my wife and kids comes from work or music. I really don't want to cut myself off from those people.

 

I'm 55 and right now plan on working until at least 65. I'll work longer if I can do it part time.

[J. Dan]

Yeah, I guess technically if I were to replace day job time with paid music playing time, it's not technically retirement.

[ElmerJFudd]

The difference is working doing something you enjoy to do and not being dependent on it to make the bills. There is a certain amount of stress that evaporates for humans when they are permitted some freedom.

[ElmerJFudd]

I assume you mean retiring from your day job and having more time for music. For folks who's day job is music, it could be argued that playing music will get you through no money better than money will get you through no music! Those that fall into this category almost never retire.

 

There does come a day when you start to cut valve your hours - less gigs, less lessons, less dates, less inconvenient obligations. The problem is, and it"s the same all round... how long do you think you"ll live and have you saved enough.

 

I"m thinking as long as I don"t have a rent or a mortgage over my head, that retiring early is doable. If you"ve had enough years of stability and you have housing paid off or built up enough equity - that"s a major monkey off your back.

 

[mate stubb]

The other monkey on your back is health insurance.

[Song80s]

I assume you mean retiring from your day job and having more time for music. For folks who's day job is music, it could be argued that playing music will get you through no money better than money will get you through no music! Those that fall into this category almost never retire.

 

There does come a day when you start to cut valve your hours - less gigs, less lessons, less dates, less inconvenient obligations. The problem is, and it"s the same all round... how long do you think you"ll live and have you saved enough.

 

I"m thinking as long as I don"t have a rent or a mortgage over my head, that retiring early is doable. If you"ve had enough years of stability and you have housing paid off or built up enough equity - that"s a major monkey off your back.

 

 

you are on the right track IMO

 

There is another major consideration other than ' mortality'.

 

Its maintaining good health, and hope to the heavens, a person does not

contract Alzheimers/Parkinsons , at an early age. Michael J Fox is an example.

 

I know all this can be depressing. But the above supports my assertion to

retire early and give your self the gift of time.

 

That way, you can have total quality of life, immerse yourself in music passion and

have more time with family and friends.

 

 

[Song80s]

The other monkey on your back is health insurance.

 

absolutely . When I planned 25 years out, the biggest unknown cost risk was health insurance.

 

And folks should not over look dental health.

 

Just this year, I spent $6000 on root canal, and 3 new caps.

Totally necessary work and no vanity involved.

 

fortunately I invest in premium dental coverage

so my out of pocket cost was not a wipe out