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Old 11-02-2014, 05:06 PM   #41
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... I try to read these financial and/or retirement books in bed just before I go to sleep. Lol... they seems to help me fall asleep.
And hopefully they lead into pleasant dreams as you sleep....
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Old 11-02-2014, 06:17 PM   #42
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Hahaha... what happens if a drive all the way to the library (burning fuel and putting wear and tear on my car) and find out the great books that you guys recommend are not there? I already bought 7 books recommended thought this forum site and all were used books with the exception of one that was new ($1.00 more when considering shipping), Lot of these great used books sell through Amazon between $0.01 to $6.00 with shipping costs of $3.99...just click the used link on the book you want to purchase.
Over here, we have the internet, so I log into the library, reserve my books, a dvd (up to 7) and some cd's (up to 10). Then I drive to the library and pick everything up.
If you keep buying books, it will just be more to move to Kauai
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Old 11-02-2014, 07:08 PM   #43
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Over here, we have the internet, so I log into the library, reserve my books, a dvd (up to 7) and some cd's (up to 10). Then I drive to the library and pick everything up.
If you keep buying books, it will just be more to move to Kauai
In my state, we have a system where we can request books from other communities libraries and have them shipped to our local library. The catalogs are all online and searchable through a single interface.

There is also a worldwide catalog of library catalogs available at worldcat.org

-gauss
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Old 11-02-2014, 07:30 PM   #44
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: love your post and thoughts...did you cut after semi-retirement, or along the way? How is the part time job deal,working for you? --Nomad
We cut expenses so my husband didn't have to have a megacorp job any more. We had a couple of hobby businesses before that but that income is not consistent so we had to plan a budget that would cover our living expenses just based on pensions, SS and portfolio income.

We've been cost cutting for several years and I am still stumped at some of the easy things I missed along the way, like eliminating the business banking fees. We just did that last week and there was an extra $300 a year that took an hour to change over. So the ten year ROI on our time was $3k for one hour of work. Earlier this year we stopped renting our cable modem for $8 a month, or $960 over ten years for another hour or two of work.
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Old 11-03-2014, 09:24 AM   #45
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Kauai bound, welcome to the forum and seems you have a lot of good reading to do and learn more to help you with decisions.

Not knowing what your savings will be 5 years from now, I can only say that it seems your current levels may be a bit tight with two houses and traveling between. Since you have only small pension, will need to cover medical until 65, and wait until SS kicks in; you have a lot of potential expenses and not enough savings to provide the income with a safe withdrawal rate. Kind of a champagne taste with beer budget problem. However, you can control and determine your expenses which is the key. Expenses can be changed to lower them, and in turn it gives more flexibility for the required withdrawals to meet your budget requirements.

Maximizing savings between now working full time and 5 years from now retirement may be key to your ability to retire and have the std of living you want.
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Old 11-03-2014, 10:37 AM   #46
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Kauai bound, welcome to the forum and seems you have a lot of good reading to do and learn more to help you with decisions.

Not knowing what your savings will be 5 years from now, I can only say that it seems your current levels may be a bit tight with two houses and traveling between. Since you have only small pension, will need to cover medical until 65, and wait until SS kicks in; you have a lot of potential expenses and not enough savings to provide the income with a safe withdrawal rate. Kind of a champagne taste with beer budget problem. However, you can control and determine your expenses which is the key. Expenses can be changed to lower them, and in turn it gives more flexibility for the required withdrawals to meet your budget requirements.

Maximizing savings between now working full time and 5 years from now retirement may be key to your ability to retire and have the std of living you want.
Thanks for the warm welcome and solid advice and guidance 38Chevy. I sure wish life was simpler like the previous generation where people retired with a pension. This 401k alternative makes retirement much more complicated, and maybe even dependent on the market for the next decade.
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Old 11-03-2014, 10:45 AM   #47
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This 401k alternative makes retirement much more complicated, and maybe even dependent on the market for the next decade.
You don't necessarily have to depend on the market for retirement income. I don't. But it means not counting on stock market type returns in your retirement funding plan. I focus in part on cutting expenses because I can control most of my expenses, but I can't control the market.
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Old 11-03-2014, 10:56 AM   #48
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You don't necessarily have to depend on the market for retirement income. I don't. But it means not counting on stock market type returns in your retirement funding plan. I focus in part on cutting expenses because I can control most of my expenses, but I can't control the market.
It's tough to even plan for retirement with my company 401K plan being my primary means to retire. For instance, when Obama was first elected, the stock market crashed, and my 401K was something like $300,000 or so (don't remember). Today, that same portfolio with your typical 6% contribution and company match is at about $920,000. So, in 5 to 10 years, I have no idea what the value of the 401K will look like.
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Old 11-03-2014, 11:07 AM   #49
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It's tough to even plan for retirement with my company 401K plan being my primary means to retire. For instance, when Obama was first elected, the stock market crashed, and my 401K was something like $300,000 or so (don't remember). Today, that same portfolio with your typical 6% contribution and company match is at about $920,000. So, in 5 to 10 years, I have no idea what the value of the 401K will look like.
Most posters here are into a Boglehead type approach, using index funds. Anther strategy is a matching one:

Matching strategy - Bogleheads

There is a poster named bobcat2 on bogleheads with some good posts on matching strategies. Matching strategies have their pros and cons, but avoid sequence of return risk early on in retirement.:

How to avoid sequence-of-return risk - MarketWatch
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Old 11-03-2014, 04:17 PM   #50
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Thanks for the guidance! I think reducing expenses is a major key as well. The area that I want to learn more is how to generate income from my portfolio once my work income stops... since the shift seems to change from investment growth to investment income stream need. It seems wise to invest in multiple ways to receive income stream at retirement including rental property. Drawing 4% from the principle sounds safe and common, but I'm sure people are doing a lot more to develop retirement income streams. I'm very interested to hear what others seem to be doing.

The 4% strategy includes COLAs every year, based on inflation. You start with 4%, then increase the withdrawal amount each year. It's common, but not necessarily safe. Originally, it had a 95% success rate factored in, so it was never 100%. Things have changed since that strategy was worked out decades ago: people are living longer, and if you retire early it screws up the formula. I retired at 58, and my WD is 2%, and I don't give myself an automatic COLA. We also have pensions. I would never go above above a 3% WD of the initial portfolio value.

One thing about insurance is Obamacare - if you can keep your income under $70k, you proabaly qualify for subsidies that might lower your health insurance costs.

Also, check your 401k on that rollover and also check your current costs on your 401k. I rolled over $375k from one account to Vanguard with no penalty. I was 57. I can make one rollover a quarter. My average ER is .08%. If you're paying 1 to 2 % with your current 401k, the rollovers a good idea. You are NOT taking money out of an IRA when you do a rollover - you are merely changing custodians. I see no reason there should be a tax penalty. There was none for mine. But check - yours may differ.


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Old 11-03-2014, 05:23 PM   #51
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My heart cries early retirement, my head is confused

Run your initial figures through Firecalc to give yourself an idea of what might be feasible. One option includes a 100% success rate to give you a WD amount over your expected life span


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Old 11-09-2014, 10:17 AM   #52
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Run your initial figures through Firecalc to give yourself an idea of what might be feasible. One option includes a 100% success rate to give you a WD amount over your expected life span


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I am starting to read the books recommended by our Forum site. and they are very helpful and great books. I find it strange that we have to determine our expected life span, like that is really possible. Are we saying, plan your retirement on an estimated expected life span, so we don't run out of money in case we live a long life?
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Old 11-09-2014, 11:06 AM   #53
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On this site most people plan for the age of 90. I guess you call this planning for the best case. Some delay SS to 70 as a hedge as well. I plan for 90 for my investments
, but I also plan to take SS at 62 as I don't want to leave SS on the table in case I don't make it that long.
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Old 11-09-2014, 04:42 PM   #54
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On this site most people plan for the age of 90. I guess you call this planning for the best case. Some delay SS to 70 as a hedge as well. I plan for 90 for my investments
, but I also plan to take SS at 62 as I don't want to leave SS on the table in case I don't make it that long.
Interesting...to plan for the age 90. I had a Grandfather and Great Grandmother who lived to 98. I guess if we outlive our projected life expectancy, we can live with our kids.
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Old 11-09-2014, 06:25 PM   #55
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I'm planning to age 100. Also planning to delay SS until age 70.

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Old 11-09-2014, 06:41 PM   #56
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Hi, welcome to the site. I just joined the site recently too but have been reading the posts for several months.
I have been dreaming really hard about retirement for about a year now. My wife and I are both 49 with a net worth of $1.4M.
I figure I have about 5 yrs to work but maybe 9 when my youngest of 4 graduates college.
My biggest fear is the unknown of healthcare costs once i retire and have to py for it myself. T seems like $10k-$20k is the going rate.
I also need to drill down on a spending budget. I figure my income from 2 pensions will be about $80k plus SS when I get ready for that.
This forum hasbeenhelpful to hear from people who have actually experience the living in retirement.
Good luck to you.
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Old 11-09-2014, 07:32 PM   #57
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I'm planning to age 100. Also planning to delay SS until age 70.

-gauss
SS at 70 = 125%?
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Old 11-09-2014, 07:35 PM   #58
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Hi, welcome to the site. I just joined the site recently too but have been reading the posts for several months.
I have been dreaming really hard about retirement for about a year now. My wife and I are both 49 with a net worth of $1.4M.
I figure I have about 5 yrs to work but maybe 9 when my youngest of 4 graduates college.
My biggest fear is the unknown of healthcare costs once i retire and have to py for it myself. T seems like $10k-$20k is the going rate.
I also need to drill down on a spending budget. I figure my income from 2 pensions will be about $80k plus SS when I get ready for that.
This forum hasbeenhelpful to hear from people who have actually experience the living in retirement.
Good luck to you.
Nice post JohnnTexas! You seem very solid with your numbers. I figured that I need to work until my youngest son either graduates colleges and gets a good job, or when he turns 26...so he can remain insured under my company health insurance plan.
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