Over 50, and Under No Illusions

obgyn65

obgyn65

Thinks s/he gets paid by the post
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Interesting article in today's NYT :

http://www.nytimes.com/2013/01/13/b...o-remake-their-careers.html?ref=business&_r=0

"IT’S a baby boomer’s nightmare. One moment you’re 40-ish and moving up, the next you’re 50-plus and suddenly, shockingly, moving out — jobless in a tough economy."

Everyone needs a plan B. What is yours ? Mine is a mix of 1) annuities mainly at a later stage in life, 2) stay the course (as they say on Bogleheads) until I FIRE, 3) maybe w*rk part time hours locum tenens and 4) keep LBYM.
 
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My plan B is (thank God) having tenure. If my current administrative position at the university folds for some reason (it won't) I'll go back to teaching in my former department.
 
My plan B was to save/invest enough to be able to live off investments starting at age 40. Thus when I got to age 50, I didn't need a plan B.
 
What LOL said. FI by 40 was my plan, and I'm FIREing this year at 44.
 
We were talking about this this morning - if it weren't for health care, we would be FI already. (Quite frankly, unless you have absolutely guaranteed, high-quality health insurance from a former employer, or a government pension, or something like that, I don't think anyone can really be sure that they have FI unless they're "there" twice over, now, given how there is really no way to know what health insurance will cost.)
 
Re: "Kaiser Permanente calculator"
Your health today
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I don't see a "How much will it cost me, all told?" calculator. :(
 
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Thanks... that covers 2014... What I'm worried about 2024 and 2034, though.
 
bicker said:
Thanks... that covers 2014... What I'm worried about 2024 and 2034, though.
Click to expand...

I'll be on medicare by then, if it survives. Here's another calculator for PPACA

National Health Care Calculator

The cost was one issue, I was more worried about accessibility. It doesn't matter how much money you have when they will not sell you insurance, which is pretty much anybody 50+ regardless of what "conditions" you have. I found you could do COBRA, use it up, and then are eligible for state pool via HIPAA.
 
I was saving as much as I could while working and when I did get laid off (at the age of 45), I didn't have as much saved as I wanted. However, I found that by trimming my material standard of living, I was able to not go back to work. This was a good thing, because I didn't really feel like re-inventing myself, which is what it would have taken to gain new employment. I may work part-time in the future to supplement my income but I can't see myself committing to a career in the same way ever again.

So far, the plan's working, and my income should go up a little over time (above and beyond merely keeping up with the rate of inflation.)

I can only talk to a few of my friends about money, and I try to impress upon them the need to save earnestly. With one of them, my message is actually starting to get through.
 
bicker said:
We were talking about this this morning - if it weren't for health care, we would be FI already. (Quite frankly, unless you have absolutely guaranteed, high-quality health insurance from a former employer, or a government pension, or something like that, I don't think anyone can really be sure that they have FI unless they're "there" twice over, now, given how there is really no way to know what health insurance will cost.)
Click to expand...

I don't think anything can be considered "absolutely guaranteed". The question is are you willing to wait an additional 10 years (or however long it takes for your portfolio to double) to FIRE? or will you decide the risks are acceptable with the Affordable Care Act? or split the difference somehow?
 
Major Tom said:
I was saving as much as I could while working and when I did get laid off (at the age of 45), I didn't have as much saved as I wanted. However, I found that by trimming my material standard of living, I was able to not go back to work. This was a good thing, because I didn't really feel like re-inventing myself, which is what it would have taken to gain new employment. I may work part-time in the future to supplement my income but I can't see myself committing to a career in the same way ever again.

So far, the plan's working, and my income should go up a little over time (above and beyond merely keeping up with the rate of inflation.)

I can only talk to a few of my friends about money, and I try to impress upon them the need to save earnestly. With one of them, my message is actually starting to get through.
Click to expand...

I was terminated in '98 from Megaconglomocorp, during one of many re-orgs, but they left the backdoor open, and I went right back into a tech job, for more money, mostly because of the gawd-awful [-]depressed[/-] compressed shift I worked, with all the built-in OT. I saved a bunch during the ensuing years, and managed to make the "bridge" before being outsized permanently. This allowed me to get subsidized HI, so that base is covered. [-]Sheer, dumb luck[/-] My advanced skill set got me back to work at a university shortly thereafter, and I managed to save a bunch while getting severance and unemployment. Getting pretty close to the number now, but, alas, the funding for my program is disappearing, and the chances of new funding are currently unknown. So, may be out on the street again this summer. I could FIRE now with an early SS check, but I'm still 3.5 years from that. The thought of interviewing, and sucking up to some 30yo asking me what my "five year plan" is, gives me hives and heartburn!!

Ideally, another 2-3 years of w*rk would get me where I'd like to be, but if the doo hits the rotating, oscillating blade, and my alternative is sweeping the floor at Home Depot, I may decide to go ultra frugal for a couple of years, then when SS gets close, go to full-bore FIRE.

The good thing is that I'm comfortable enough that I have a choice.
 
Plan A = Don't get sick Plan B = If sick, die quickly!

The gov't just can't shrink that prescription doughnut hole fast enough to suit me!

Seriously, until "Obamacare" is priced, cannot be sure if I am FIRE. Hope to know premium details by late summer so I can negotiate a "package" with employer.

Plan B is to work one more year which I would rather not do...
 
HFWR said:
The good thing is that I'm comfortable enough that I have a choice.
Click to expand...
And that is the best reason for saving that I try to get across to my less financially-savvy friends - the fact that having money put aside gives you choices and more freedom. They see it as mainly an opportunity to buy more stuff!
 
obgyn65 said:
Interesting article in today's NYT :

http://www.nytimes.com/2013/01/13/b...o-remake-their-careers.html?ref=business&_r=0

"IT’S a baby boomer’s nightmare. One moment you’re 40-ish and moving up, the next you’re 50-plus and suddenly, shockingly, moving out — jobless in a tough economy."

Everyone needs a plan B. What is yours ? Mine is a mix of 1) annuities mainly at a later stage in life, 2) stay the course (as they say on Bogleheads) until I FIRE, 3) maybe w*rk part time hours locum tenens and 4) keep LBYM.
Click to expand...

My plan B was simply to save and invest as much as possible so that I could become FI/ER as soon as possible. By the time my early 50's rolled around I was in a position to ER and did so at 52. I drove the same car for a minimum of 10 - 15 years. Always packed my own lunch, had a comfortable but modest house . Although I had very good income, I didn't spend it all and certainly no debt. LBYM is simple and it really, really works. Result was when the crash of 2000-2002 rolled around it did nothing to derail my ER plans and I ER'd at end of 2002.
 
My "plan" was to stick it out in my federal career and in the military reserves long enough to secure 2 COLA'd pensions that when combined would provide enough income to support my wife & I, not lavishly, but comfortably.

Additionally, since she'll have survivor's benefit's from both pensions, and her own Social Security, plus our hopefully paid-off home, she should be okay. *We still have to buy & pay for the house...;))

There were plenty of days when I wasn't sure I'd make it to retirement, due to having an urge to come in shooting (kidding, sort of) I am happy I hung in there.

Of no small importance is the fact that we'll have health benefits from both of my former careers. Regular health insurance, employer-subsidized from the civilian job, plus later on...TriCare from the military career. We'll be ok. I'm glad I stayed the course. We're not rich, but we're happy!

Oh yeah...Plan B(b) was to not rely on my future pension(s) alone, but to also max my TSP contributions for several years as well, even though no employer match, and to also contribute generously to wife's 401k. She'll work at least 3 years more, and we plan to double her contributions through that period. Maybe even to the max, if we can swing it!
 
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Plan A : build investments on a solid foundation of historical backtesting (history is all we have, there is no future knowledge). Do the number crunching myself so I really understand the risks. Do intelligent tax planning.

Plan B : sell the big house.

I stopped reading that NY Times article in the OP when it talked about a US lady moving to Islamabad, Pakistan -- that is totally nuts.
 
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I've seen this happen to a few people, quite sad really.

My Plan B when I grew tired of megacorp in 2012 was to move into contract work in my regular field. I've worked all the days that I've been available, making more $$ working less hours. If and when the assignment expires, I'll look for another contract assignment, but will probably take a few months off, hoping for summer of 2013.

I think it's easy for me to accept as I have a Plan C/D.

Plan C - real estate investing and landlord for family assets. I did it to help my mom find a place to live years ago, but bought a few units over the years, so now the income covers our "normal" family budget.

Plan D - $1M plus invested in low cost index funds.

Plan E - agree with DW that she should work outside of the household. Both kids will be in full time school in Sept 2013.

I am under no illusions, I was lucky with a tad of hard work.
 
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Plan B if I lose my current position is to consult part-time. I did this for two years when I was fired a few years ago from another position. Really enjoyed it and wound up working for one of my clients; would do it again. No debt, 1.5M in investments, another $400,000 in home and other assets, age 59.
 
Plan B was to have enough passive income to cover our expenses by age 50. We got there a lot sooner than expected, thankfully.

Plan C is to sell some hard assets to replenish our income-producing portfolio.

Plan D is to work part time to supplement our passive income (DW and I are working on several possible self-employment ideas right now).

Plan E is to move abroad. With my EU citizenship, many choices are open to us - places with good quality of life, lower COL, and cheaper health care.
 
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Inspiring article - so many people are reinventing themselves (professionally) out of economic necessity and in the process, finding more satisfaction & fulfillment. Power to them.
 
rbmrtn said:
I'll be on medicare by then, if it survives.
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Precisely. And even if it does survive, just being on Medicare doesn't fully resolve the concern about health care costs.

photoguy said:
I don't think anything can be considered "absolutely guaranteed". The question is are you willing to wait an additional 10 years (or however long it takes for your portfolio to double) to FIRE? or will you decide the risks are acceptable with the Affordable Care Act? or split the difference somehow?
Click to expand...
I have no great desire to retire too early. I'll be happy to go at least another twelve years if possible; that'll put me at 62. RE is my Plan B. But that "splitting the difference" becomes a significant consideration as the availability of jobs for people my age declines sharply, such that the compensation I can hope to receive declines sharply. There comes a point where continuing to work becomes less valuable than retiring early, assuming that FI is achieved. Questions pop up for me; for example: When does working longer (at a substantially lower salary) start eating into SS, for example? But more qualitatively: At what salary level does it become worth severely cutting expectations for FI, for how much we can spend in retirement, in order to no longer work. Lots of questions.
 
Plan A: Live off of DB pension (continue in accumulation phase due to low living expenses)

Plan B: Live off of PBGC payout if pension goes bankrupt (continue in accumulation phase, albeit reduced)

Plan C: Live off of Social Security (remain in accumulation phase, albeit further reduced)

Plan D: Live off of investment portfolio at about 1% withdrawal rate

Plan E: Move to lower cost of living area (currently in San Francisco Bay Area)

Plan F: Obtain reverse mortgage

Plan G: Cut already low living expenses (e.g., eliminate cable TV, car)

Plan H: Do you want fries with that?
 
Glad I retired while I was still young enough [-]not to care[/-] that we did not have all these issues to deal with.
 
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