Retirement planning

[padlin]

My wife has always kept track of our expenses, for the last 25 years using Quicken.

Quickens Lifetime Planner isn't a bad tool, a little simplistic but pretty good.

I-orp is decent, a bit over optimistic depending on how you set some of the options, but quick. Can't say how relevant it is for folks north of the border. Optimal Retirement Planner - Parameter Form

I like Fidelity's but you need to have an account.

 

[Rossue2]

Anyone listen to Dave Ramsey? Both of our parents essentially followed his main points long before he wrote his first book and so did we. Delaying gratification, having no credit card debt or car loans. As he says " a paid off mortgage has replaced the BMW as the new status symbol."

As far as the kids today go- ours are fairly inept about financial matters as we have unfortunately coddled them, and like a lot of others they have this sense of entitlement. The kids I used to employ always went out to lunch as well as buying plenty of lattes. Their retirement may end up looking like my sister's where although her house is almost paid for they don't have a pot to....in, and it was primarily due to never thinking today was going to arrive. Just my $.02.

 

[currinh]

A great resource for those in the states is SSAnalyze - Bedrock Capital Management You can plug in various scenarios as to when and how to apply for SS. Many think that retirement & collecting SS are one and the same as to timing. That's not necessarily true. I retired last year just before turning 63. I'm not planning on applying for SS until it maxes out for me at 70. The important thing for me was to have a good understanding of my cost of living (after using Quicken for 25+ years). Now in retirement, I look at how I spend money carefully and try to get the most bang for the buck spent. (Like buying an Escape!)

I understand one option is to apply for SS at full retirement age (66) and immediately suspend payments. Then your wife can apply for spousal benefits at full retirement (66). Note, both must be done after reaching respective full retirement ages. Your benefits continue to grow until it maxes out at 70, but you could start receiving benefits between 66 and 70. Lower benefit than if you wait till 70 though. Your wife can switch to her benefits, which will similarly continue to grow till 70, at anytime. Her switching depends on her working history, is spousal larger than the benefit.

I hope I have it right. I plan to do this and apply for my benefits between 68 and 70, depending on how savings hold up.

I suggest "Get What's Yours: The Secrets to Maxing Out Your Social Security" by Laurence J. Kotikoff, Philip Moeller & Paul Solman. [Obviously for USA citizens.]

Thanks.

 

[dfandrews]

Anyone listen to Dave Ramsey? Both of our parents essentially followed his main points long before he wrote his first book and so did we. Delaying gratification, having no credit card debt or car loans. As he says " a paid off mortgage has replaced the BMW as the new status symbol."

.... Just my $.02.

Yup. Dave Ramsey is excellent.

Regarding our kids: we've passed along something I learned from my grandfather: "so you want that ('fill in the blank')? How many hours do you have to work to pay for it?"

We think it has sunk in!

 

[J Mac]

In BC, homeowners can defer their property tax on their principal residence after the age of 55. This 'loan' is payable when this principal residence changes title. The cost is 1 percent. As long as this cost is below banks prime lending rate, the home owner is ahead. I would also suggest BCers collect their CPP at age 60. If the government is handing out money...grab it before they change the qualifying age.

Buy wine in boxes too instead of bottles��

 

[Jim Bennett]

In BC, homeowners can defer their property tax on their principal residence after the age of 55. This 'loan' is payable when this principal residence changes title. The cost is 1 percent. As long as this cost is below banks prime lending rate, the home owner is ahead. I would also suggest BCers collect their CPP at age 60. If the government is handing out money...grab it before they change the qualifying age.

Buy wine in boxes too instead of bottles��

I do buy in tetra pacs myself when going canoeing. I have used boxed wine, but the cardboard disintegrates when wet, leaving the thin bag vulnerable. Not too bad of stuff either, especially in the backcountry

 

[J Mac]

I've got a quick fix for when the cardboard gets wet. Drink faster or better still, share for gosh sakes. ��

 

[BRietkerk]

[QUOTE=I would also suggest BCers collect their CPP at age 60. If the government is handing out money...grab it before they change the qualifying age.

Taking your CPP early is a good idea if your total annual income is low. The CPP income is then not taxed back. The payout is now reduced .6% for every month it is taken early. (before 65) Works out to 36% less if taken 5 years early. Payments increase .7% for every month you delay after 65. I delayed until we entered a lower tax bracket. Hope I live long enough to benefit from the decision.

 

[J Mac]

I hope so too. I also hope, for people following your advise, that the Feds don't change the qualifying age (unannounced) like they did with old age pension. There are lots of ways to show a lowered income.
Collecting CPP at 60 gives the payee 60 checks ahead of those that wait until they're 65. I say, 'take it when you can'.

 

[JStelly]

This link is another great resource. While it is a bit biased to early retirement there is some great info anyone. I've been on the forum for a couple of years now and the members are a lot like this forum in contribution, commitment, and expertise with a little humor along the way.

Early Retirement & Financial Independence Community

 

[J Mac]

This link is another great resource. While it is a bit biased to early retirement there is some great info anyone. I've been on the forum for a couple of years now and the members are a lot like this forum in contribution, commitment, and expertise with a little humor along the way.

Early Retirement & Financial Independence Community

This site, although most likely very informative, applies mainly to the USA.

 

[Otter]

My two cents. We tend to worry too much and plan too little. Check out some numbers about spending by age bracket. My guess is you will find that spending increases early in retirement and declines from there and about mid to late 70's drops quickly. I can say I have seen this happen with retired coworkers that are at least a decade older then myself.

 

[gbaglo]

I started my retirement counting sheets of TP.
I've relaxed since.

 

[Zardoz-ESC]

My two cents. We tend to worry too much and plan too little. Check out some numbers about spending by age bracket. My guess is you will find that spending increases early in retirement and declines from there and about mid to late 70's drops quickly. I can say I have seen this happen with retired coworkers that are at least a decade older then myself.

I too think this and have factored it into our plans. Thirty years ago when we started saving for retirement, I said "that's when the real party starts." Well, the party's in progress and boy am I glad we had that attitude when we were first married. Far from rich, but security is worth millions. In 20 years, we'll likely not have the energy to do nearly as much as we are doing today and that's just the normal course of events. Wel'll spend our time reminisicing (if our memories hold ).

 

[LarryandLiz]

I've really appreciated reading all of the retirement thoughts on this thread. My biggest issue is deciding when to pull the trigger and actually retire. Liz is already retired. She and others in my family think I should pull the trigger and retire ASAP: we've been edging towards April 1st (April Fool's Day) next year with me having just turned 62. Our financial planner says that eating pet food is not going to be part of our future if I quit then and that all will be well.

How much one should have in retirement seems like a very subjective, personal issue. I was getting settled on an April 1, 2016 retirement date. And then Greece (the country) started becoming a big news item and it seems our portfolio was impacted. Now I'm hearing about China and their stock market, and people talk about a Lower Mainland BC real estate bubble bursting, then the price of fuel seems to do nothing but go up. And part of me muses that it would be stupid to choose to walk away from secure employment.

And then there is the whole self-image thing of leaving very interesting, albeit stressful employment in criminal justice and choosing to become ..... retired..... no more passwords, no more interesting issues and challenges.

And so I work at evaluating issue things like: what if the stress of working longer has a negative effect on my health (emotionally, physically, spiritually). why not quit now, travel with our 17b enjoying these years with my beloved and my family because who knows what kind of troubles (health/disasters) are brewing and waiting for any us.

So I'll keep reading this thread and watching our financial portfolio and continue to make tentative plans to pull the retirement trigger on April Fools Day 2016. We are picking April1 to give us a month to decompress into my retirement and plan for a extended SLOW road trip starting in May. Leaving from home here in Maple Ridge east to explore Alberta then south into Montana, Wyoming then West towards the U.S. Coast and then back north to home.

 

[tractors1]

No more challenges when retired? Difference is YOU get to pick the challenges you want to deal with. Most of the retired people I know are amazed they ever had time to work full time once they develop their interests and hobbies (for which they never had time before.) I retired at 56 (target was 55) and survived the market slump that started in 2008 just fine, since I have patience and faith in the stock market. Decided to start a hobby business and hired my wife to do the books when she retired! She decided to learn to play the cello at 65........................retirement is what you make it!

 

[gbaglo]

As usual, I'll be the miserable SOB.
I retired early because I wasn't sure which would go down first, the newspaper I worked for, or my health. They offered 18 mos. salary to get rid of me.
Do I miss it? I miss the newspaper I worked for ten years ago. I don't miss what the newspaper business has become. Can't complain, because I had 45 of the best years.
I miss the adrenaline of getting a call at 4am to get to the airport for a charter flight to cover a major news event. My life was being ready for anything that may happen.
Now that I'm retired, I'm not always sure what day it is, and it doesn't matter anyway.
Would I rather be 29 years old?
I don't know, I'd probably have a mortgage.
What I've learned is that you want to enter retirement in good health and mortgage free and with a decent tow vehicle.

 

[Mike Lewis]

Would I rather be 29 years old?

Would I rather be 18 again? If it were 1974 again, I'd say yes-- I'd like a few do-overs. But I wouldn't want to be 18 in 2015. Young people today will probably have to deal with challenges in their lives that I didn't and won't have to face.

 

[padlin]

Would I rather be 18 again? If it were 1974 again, I'd say yes-- I'd like a few do-overs. But I wouldn't want to be 18 in 2015. Young people today will probably have to deal with challenges in their lives that I didn't and won't have to face.

Same thing our parents would have said 40 or so years ago.

 

[Bill and Earline]

I understand one option is to apply for SS at full retirement age (66) and immediately suspend payments. Then your wife can apply for spousal benefits at full retirement (66). Note, both must be done after reaching respective full retirement ages. Your benefits continue to grow until it maxes out at 70, but you could start receiving benefits between 66 and 70. Lower benefit than if you wait till 70 though. Your wife can switch to her benefits, which will similarly continue to grow till 70, at anytime. Her switching depends on her working history, is spousal larger than the benefit.

I hope I have it right. I plan to do this and apply for my benefits between 68 and 70, depending on how savings hold up.

I suggest "Get What's Yours: The Secrets to Maxing Out Your Social Security" by Laurence J. Kotikoff, Philip Moeller & Paul Solman. [Obviously for USA citizens.]

Thanks.

Hugh,
The "file and suspend" plan fits us, too.
I have yet to meet someone who has done it, but we'll be doing just that in less than three years. Glad to have someone corroborate the concept.
Bill