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55 and in our final stages before retirement
Old 02-24-2013, 05:55 AM   #1
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55 and in our final stages before retirement

Hi I am new to the forum. A new friend introduced me to this forum as a help to me since we will be retiring in a few years. I guess a little introduction is in order.

My dear wife and I have been married for 33 years. We have one child a daughter aged 31 semi on her own (sorta). She is an office worker and a darn hard working one. She also manages her own (our business plastics manufacturing) as a sideline. She recently got hired in another company and that income is being used to make ends meet and to sock away even more to the nest egg that I will get to. We are 55 (she will be in 2 months) and getting close to retiring as my title states. I am Army National Guard, a veteran and a full time federal employee. What this means is I am vested in two pensions that I will disclose in a bit as well. Currently we live in the Commonwealth of Massachusetts. We own two houses. One our home with a mortgage and a rental property nearly paid off. As I said we also own our own manufacturing facility and business. Tough economy and competition from the Chinese makes it not very lucrative. Still it helps pay some bills and keeps some employed as well.

I guess that lays out most of the background. I am expecting to remain working for the Guard for the next 4 plus years. I have a mandatory military retirement age of 60 and my full time job depends on my continued employment in the National Guard. I could be retired any time as every two years they do a qualitative retention board. This could end my guard time and subsequently my fed time. While I do not expect it I am set if it happens. I reach my minimum retiremnt age MRA this year and I have 30 years of creditable service. That means I can begin to collect anytime after September this year and a supplement to take me to age 62.

Let me talk about what I expect from my pensions. At age 60 military pension will gross about $2,200.00. My federal pensioin will gross the same approximately $2,200.00. The suppliment I do not know but I suspect it will be approximately what I would be getting from SSA and that is almost $2,200.00. It is not SSA but part of the pension system. I cannot collect the military pension early so that will start at age 60. As previously said I believe my SSA will be $2,200 minus the pension offset. I will not be hit with the windfall penalty unless they change the rules. So far those number look good. We can add my wife's SSA that is just under $2,000 and as I said she is socking away in 401k to add to the nest egg. I kind of expect that by age 65 we will have grown about $100,000.00 in her retirement savings. In mine I currently have $416,000.00. This I hope will increase by the time I am ready to tap into it. That time is up for debate still. Based upon the above income I should be able to not have to tap it for a time even up to my mandatory withdrawal date. Again up to debate.

Our plan here is to move from our current home to downsize and move to a more tax friendly and nicer weather area. Texas is high on the list, actually at the top and San Antonio for specific reasons. That move will require the sale of our property and business. As of now I cannot say for certain what I will realize in gains on the properties. The home we should probably get our purchase price and half will need to go to pay off mortgage. That I expect to be about $200,000.00 to us after sale and pay off. The Rental property should be a full price as I think we are close to paying off the mortgage. We have owned it a very long time. We should get just under full value for the house and since we paid investor price for the house that could net 100% gain or very close. I expect another $200,000.00 for that. Again property values are still in flux and we are still talking 6 years hence. The business is completely unknown. The property is in the center of the city. It has 10,000SF of useable building. It is set up for manufacturing but can be switched over to any number of businesses if someone wanted. In a guess I will probably get $100,000 from that sale.

I am not sure what others have posted here for their first one and introduction but that is the GolfingDuo in a nutshell. I know one of the first questions I have here is how can I help set up my nearly on her own daughter for her later years. I do not expect to use all of this in the next 40 years. The pensions are vested so that even if I pass away my wife continues to collect. The nest eggs are for the most part pre tax savings so we will be paying as we withdraw I am certain.

So if someone has ideas on how to best help my only offspring that would be a great start. Our retirement will be travel and golf and work (just to keep active) for a while.
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Old 02-24-2013, 06:36 AM   #2
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Welcome aboard.
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Old 02-24-2013, 07:07 AM   #3
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One method to help your daughter would be to annually fund her a Roth. I also have my daughters as beneficiaries on my personal Roths. Provides an immediate benefit if I pass. If I live long enough, I will cash them out and give to them as an annual gift.
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Old 02-24-2013, 07:20 AM   #4
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Welcome aboard here. You look as you have everything in order to make the early move. San Antonio would not be my choice. I went to basic training there and did not like the weather. Way to hot in the summer and the winters, well one morning it will be 30 degree at 6 am and 85 by noon. Unless you have lived there before I would check real close on that part of the US. Just my take on this. Maybe someone here from San Antonio can chime in and tell us more. All places have pro's and con's. I wish you well as retirement in the future will become much harder in my opinion unless things change fast. The US has to get the debt under control if any of us want to see things better. I don't see that happening until someone stands up and tells us enough is enough. oldtrig
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Old 02-24-2013, 07:44 AM   #5
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Originally Posted by GolfingDuo View Post
Hi I am new to the forum. A new friend introduced me to this forum as a help to me since we will be retiring in a few years. I guess a little introduction is in order.
Hi GolfingDuo and welcome to the forum.

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Originally Posted by GolfingDuo View Post
Our plan here is to move from our current home to downsize and move to a more tax friendly and nicer weather area. Texas is high on the list, actually at the top and San Antonio for specific reasons. That move will require the sale of our property and business. As of now I cannot say for certain what I will realize in gains on the properties. The home we should probably get our purchase price and half will need to go to pay off mortgage. That I expect to be about $200,000.00 to us after sale and pay off. The Rental property should be a full price as I think we are close to paying off the mortgage. We have owned it a very long time. We should get just under full value for the house and since we paid investor price for the house that could net 100% gain or very close. I expect another $200,000.00 for that. Again property values are still in flux and we are still talking 6 years hence. The business is completely unknown. The property is in the center of the city. It has 10,000SF of useable building. It is set up for manufacturing but can be switched over to any number of businesses if someone wanted. In a guess I will probably get $100,000 from that sale.
Just thought you would like to see this thread Leaving Long Island for Texas


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Counterpoint:
Quote:
Texas is infested with scorpions, rattlesnakes, fire ants, crazy raspberry ants, cockroaches on steroids, killer bees, mosquitoes, ticks, chiggers, tarantulas, brown recluse spiders, love bugs, swarming crickets, copperheads, cottonmouths, rabid skunks, wild hogs, alligators, oppressive heat & humidity, bleak desolate scenery, dirty beaches, polluted air, dust storms, drought, wildfires, water shortages, recurring floods, tornadoes, hurricanes, rednecks, huge piles of flaming mulch, spontaneously combusting playgrounds, roads hot as flowing lava, the stench of natural and unnatural gasses, pirate attacks and amoebic meningitis lurking in area lakes, recurring ebola virus outbreaks, flesh eating bacteria, the highest homeowner insurance rates in the US, unbelievably high property taxes, mandatory death sentences for DUI convictions, polygamous religious sects, and, according to at least one forum member, doesn't look kindly towards Yankees.
Other than that, Texas is a great place to live.
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Old 02-24-2013, 07:53 AM   #6
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Hi GolfingDuo and welcome to the forum.


Just thought you would like to see this thread Leaving Long Island for Texas
Sounds like a retreat from the boredom of 3 foot snow storms. I will look ito the link you sent. I just had to respond to the additional info that you placed and say that in a year of Iraq I had to deal with a good portion of that and add the bad guys who wanted to blow you up and shoot at you to prove their religion was better than being free. Yeah I imagine that it will be a shock initially and we will have to learn how to step scorpions wearing shoes and not barefoot, carry a firearm to remove the rabid skunks from existance and just lose our yankee slang. I think a nice rustic cowboy hat and a few yawls will go a long way.

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Old 02-24-2013, 08:47 AM   #7
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LOL GolfingDuo on the response to the Texas thing. And welcome to the forum.

Just remember that its y'all and the plural of that is "all y'all"

Other than the scorpions, the tarantulas and the dirty beaches Texas sounds alot like Florida. I've been here 10 years and LOVE it. I agree - those 3 ft snowstorms are a drag !
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Old 02-24-2013, 09:19 AM   #8
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May we see a picture of those shoes-wearing scorpions? It must get expensive, what with all those legs! Just kidding Welcome!

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we will have to learn how to step scorpions wearing shoes

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Old 02-24-2013, 10:06 AM   #9
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My mother's cousin and her husband live outside Houston Texas and the property taxes are pretty high.

You really should do an actual comparison instead of knee-jerk response that taxes are less in Texas.

Interestingly enough, it isn't one of the top 10 most tax-friendly states for retirees.
State-by-State Guide to Taxes on Retirees-Kiplinger
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Old 02-24-2013, 10:12 AM   #10
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My mother's cousin and her husband live outside Houston Texas and the property taxes are pretty high.

You really should do an actual comparison instead of knee-jerk response that taxes are less in Texas.

Interestingly enough, it isn't one of the top 10 most tax-friendly states for retirees.
State-by-State Guide to Taxes on Retirees-Kiplinger
I did look at that website. It was what brought me to decide Texas was the better place for us. Here is a link on your site that gave me a better feeling about TX. The 10 Least-Expensive CitiesFor Living in the U.S.A.-Kiplinger Reading that and seeing TX in there more than one time and knowing what I know about San Antonio it began to tip the scale to TX.
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Old 02-24-2013, 11:53 AM   #11
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If I understood what you wrote, you are going to have over 8K per month in pensions/SSA alone. And a substantial retirement savings nest egg besides. Welcome to FI unless your expenses are unusually high. Seems like that's more than enough to be choosing a place to live based on lifestlye and what you might enjoy, not just on costs. Nothing against Texas, but with this kind of resources I wouldn't move there to save money, only if that's where I really wanted to be.
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Old 02-24-2013, 12:46 PM   #12
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If I understood what you wrote, you are going to have over 8K per month in pensions/SSA alone. And a substantial retirement savings nest egg besides. Welcome to FI unless your expenses are unusually high. Seems like that's more than enough to be choosing a place to live based on lifestlye and what you might enjoy, not just on costs. Nothing against Texas, but with this kind of resources I wouldn't move there to save money, only if that's where I really wanted to be.

I believe you are right that we can retire anywhere for lifestyle. Here are my thoughts on why Texas. Yes I realize that it is hot. I think is less expensive to live than it is here in Massachusetts. In fact only one state here in the North East would be reasonable to live and that would be my birth state of Maine. I want to escape the weather and yes I could remain in place and escape as often as I wanted. I could move to a state like PA and find myself a decent retirement location and home. Everyone seems to put PA at or near the top. There are other northern locations as well but again if all I am doing is looking to escape bad weather I could do it from here just as easily. You have hit upon a key here and that is lifestyle. In my retirement I want to be able go golfing at anytime I feel like. So that brings me south of Mason Dixon and in fact much further then that. So let's add in another caveate. Since I am military an air base that can provide me with space A travel on an as wanted basis. There are a number of those in the area described but.... how many of those are BRAC proof? Should Alabama or Georgia be a better place? Does being closer to the east coast help me? Would the west coast be better? If it was simply golf then why not Oregon that has 10 of the top 50 best golf courses in just one area Brandon? Okay let's look at Texas as a tax state. They do not tax income and SSA. Both of our pensions there would be tax free in Texas. Texas does have a substantial sales tax and as people have mentioned it has property taxes. It isn't as high as some states and it compares to MA where I live now. Is that enough for me to discount the weather, the 4 seasons of warm to hot weather my old bones are looking for. There is a large military presence in San Antonio and many of them are retirees. We will look there first as I am thinking that it is the better of the areas for us. We are still at least 6 years out from moving. There could be changes but at this point SA is at the top of the list. We have not bought into anything there but so far no one has shown me that anywhere else tops that list. I could move to Hattiesburg MS where my sister lives. The COL there is low as are taxes but it is prone to major hits with hurricanes and tornados. Yes Texas does as well but less in hill country area. Why not Arizona if heat isn't an issue? New Mexico? Nevada? I actually have gone through a lot of possibilities to this point. So that brings me back to my point of why not Texas?
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Old 02-24-2013, 02:58 PM   #13
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You 've already made up your mind.
It simply isn't worth my time to convince you otherwise.

Enjoy your retirement. It isn't mine, so frankly, it makes no difference to me whether you retire in Texas or not.
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Old 02-24-2013, 03:08 PM   #14
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You 've already made up your mind.
It simply isn't worth my time to convince you otherwise.

Enjoy your retirement. It isn't mine, so frankly, it makes no difference to me whether you retire in Texas or not.
Not exactly but it is looking more like TX. I am still at least 6 to 7 years from moving. I ain't sold out here. I have substantial interest here in Massachusetts. Until that is sold then I am up for options. But you and growing_older both say not TX but offer no alternatives.

Here is what we are interested in golfing and traveling. We have the means to do both. We can make any spot our base of operations. It is about lifestyle then and so instead of tossing your hands up in frustration speak up. No one here will bite or yell. I have just pointed out why I came to the decision of Texas and San Antonio in particular. If there is a competing and compelling counter to that I am listening. My daughter made her view point known and that was there is a death penalty in TX and they use it. I took her point. I understand my daughter whom I love very much. Maybe someone can convince me that there is a better place in terms of amenities that allow us to enjoy both of our past times.
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Old 02-24-2013, 03:10 PM   #15
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I grew up in Dallas - still live here (Lakewood between downtown and White Rock Lake - like a heavily treed small town in the center of 7 million) . I'm well traveled and would not live anywhere else. I've never seen a scorpion here.
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Old 02-24-2013, 03:14 PM   #16
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Not exactly but it is looking more like TX. I am still at least 6 to 7 years from moving. I ain't sold out here. I have substantial interest here in Massachusetts. Until that is sold then I am up for options. But you and growing_older both say not TX but offer no alternatives.

Here is what we are interested in golfing and traveling. We have the means to do both. We can make any spot our base of operations. It is about lifestyle then and so instead of tossing your hands up in frustration speak up. No one here will bite or yell. I have just pointed out why I came to the decision of Texas and San Antonio in particular. If there is a competing and compelling counter to that I am listening.
Give it some time and use the search function to look at past threads. This is a very common discussion here, and there clearly is no consensus on the forum regarding ideal retirement locations. Lots of interest in Texas.
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Old 03-04-2013, 10:44 AM   #17
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