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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 04:37 PM   #41
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by Caroline
I cannot begin to TELL you folks what a rosy picture of old age you're painting for us under 50s!

I'd be really depressed if it weren't for my 75-year-old hike leader, still leading 10-mile-per-day / 7-day-per-trip backpack trips through Utah, or the 73-year-old I met coming down from the summit of Kilimanjaro as I went up, or the 72-year-old couple who just finished a three-month backpack / bed-and-breakfast through Italy.
Caroline, thanks for the ageless reminder. I was starting to get depressed and I'm 57.
Now that I am permanently unemployed, I hope to do 7 to 10 years of international travelling, followed by 10 years of North America RV'ing. My father who is 94 until last year continued to go annually to Miami Beach.


MJ
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 04:44 PM   #42
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by MJ
Caroline, thanks for the ageless reminder. I was starting to get depressed and I'm 57.
Now that I am permanently unemployed, I hope to do 7 to 10 years of international travelling, followed by 10 years of North America RV'ing. My father who is 94 until last year continued to go annually to Miami Beach.


MJ
Hello MJ! Don't wait. Start now! As an aside, I am still thinking about
one last BIG change, before I take up the rocking chair. May not happen,
but I just love the concept. Friends and relatives saying "What the Hell
is he doing now?" That alone would be worth the angst.
Stay tuned.....................

JG
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 05:07 PM   #43
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Re: Scott Burns -- You're Saving Too Much to Retire

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Originally Posted by MRGALT2U
Hello MJ! Don't wait. Start now!
Thanks JG, I am.
To get my feet wet, I haven't been in the water for a while, I'm going to Thailand for 30 or so days at the end of October.
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 05:17 PM   #44
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Re: Scott Burns -- You're Saving Too Much to Retire

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Originally Posted by maddythebeagle
The older gang at work had a little conversation at work about long-term care insurance and how much sell pressure there was from the salesman that came in to talk to them about. One of the older workers (that actually never seems to want to retire) told me that is what your savings are for and dont bother with this insurance and several had concerns about the difficulty in collecting money if it needed.

There certainly is a case of "over-insuring" yourself, I think.
The "Hemingway exit" avoids many many problems. Forget the insurance...........
just invest in a longer garden hose and maybe a deluxe carpet shampoo
system. Works for me

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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 05:39 PM   #45
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Re: Scott Burns -- You're Saving Too Much to Retire

MJ,
We'll be running around Thailand about the same time. Actually, we are heading there in a few weeks, but will definitely be in the area in October, just not sure where exactly. Is this your first trip? Feel free to contact us.

Sawadee
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 06:21 PM   #46
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Re: Scott Burns -- You're Saving Too Much to Retire

I thought the study was quite interesting. It's a look at the "average" person, so of course the numbers will be different for each individual. My parents sort of fit the patterns mentioned, although I'm not sure that their spending has decreased that much over the years because they never spent much money. They also never made much money, nowhere near amount required to support the level of spending shown in the studies.

I've also noticed that my own spending habits haven't changed much over time. My income has more than doubled over the past 18 years, but my annual expenditures have only increased a fraction of that amount. All the retirement calculators have a person spending more and more each year. My personal experience is contrary to that. The overall trend is up, but not to the degree that the calculators would indicate would be necessary to keep up with inflation. So, I'm thinking that there is more wiggle room in how much of a nest egg one needs to retire than the number that one of the calculators will spit out. Maybe that's a delusion, but it's my delusion and I plan to stick with it!
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 07:20 PM   #47
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Re: Scott Burns -- You're Saving Too Much to Retire

I think I'm saying the same thing as a lot of posters - as follows: since 1993 in ER, our core/basic budget has risen in current dollars - but the income producing capability of our portfolio has expanded greatly - kindness of history and time.

Our travel bug got worked out during working years - need to get away from work thing. In ER - the urge to travel died off in the first couple years. I.e. - something we didn't realize - until ER - travel was work related - to get as far away from the job as possible to destress.
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-17-2005, 10:38 PM   #48
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by Billy
MJ,
We'll be running around Thailand about the same time. Actually, we are heading there in a few weeks, but will definitely be in the area in October, just not sure where exactly. Is this your first trip? Feel free to contact us.

Sawadee
Billy
Website www.RetireEarlyLifestyle.com
Hi Billy,

Yes this will be my 1st trip to LOS. Isn't this the start of the monsoon season. I would love to go sooner like September but I was told weatherwise, it would be preferable to go at the end of October or beginning of November.

Any suggestions?
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 12:32 AM   #49
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by unclemick2
I think I'm saying the same thing as a lot of posters - as follows: since 1993 in ER, our core/basic budget has risen in current dollars - but the income producing capability of our portfolio has expanded greatly - kindness of history and time.

Our travel bug got worked out during working years - need to get away from work thing. In ER - the urge to travel died off in the first couple years. I.e. - something we didn't realize - until ER - travel was work related - to get as far away from the job as possible to destress.
Unclemick: Can't speak for the other posters, but my point when I posted was that due to the
change of both myself and my wife's tastes, and spending habits, over the last 19 years since I retired, we find ourselves spending just about the same monthly amount that we started out with when we first retired. Actual amount, not adjusted for inflation.
Probably beating this point to death, but the change was an evolution, and not a self-imposed tightening up of the purse strings.

Regards, Jarhead
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 03:21 AM   #50
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Re: Scott Burns -- You're Saving Too Much to Retire

MJ; high season (meaning "cool" and sunny) is the winter months - nov-march. Oct can be ok too. An interesting thing about the Thai weather is that even in the "rainy season" we still have sunny days most of the time - but in the late afternoon some rain comes - and goes away again in the later eve.

Billy; if you are in BKK (writing LOS will confuse everybody in this board MJ ) don't forget we gotta meet for a beer too! I might be in Changmai later in the year also.
Cheers!
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 07:48 AM   #51
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Re: Scott Burns -- You're Saving Too Much to Retire

Jarhead

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Although - given statistics - there HAS to be more than one left handed, INTJ, mildly insane ER out there - can't just be me.

BTY - the porch lasted two years before I gave in to 'suggestions' to remodel - tossed in a sun porch and spare room with it.

I miss that old porch - had a real homey - Ma and Pa Kettle look - definately stood out - even in our neighborhood.
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 07:59 AM   #52
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Re: Scott Burns -- You're Saving Too Much to Retire

MJ,
I tell people it's either wet and hot, or hot and wet. The rains do cool things down a bit. Also, it depends on where you are in Thailand. If it's rainy we just wait it out. What's the rush?* This being your first trip, your in for a great experience.

Sure Ben let's knock down a few Beer Changs. If there are 3 or more ER's in a Beer Garden does that qualify as a convention This could be a first!

Billy
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 08:20 AM   #53
 
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Re: Scott Burns -- You're Saving Too Much to Retire

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The "Hemingway exit" avoids many many problems.
Any statistics on how often this occurs?
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 08:32 AM   #54
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Re: Scott Burns -- You're Saving Too Much to Retire

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Originally Posted by TromboneAl


Any statistics on how often this occurs?
I don't, but in Hemingway's case it ran in the family.

JG
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 08:36 AM   #55
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by unclemick2
Jarhead

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Although - given statistics - there HAS to be more than one left handed, INTJ, mildly insane ER out there - can't just be me.

BTY - the porch lasted two years before I gave in to 'suggestions' to remodel - tossed in a sun porch and spare room with it.

I miss that old porch - had a real homey - Ma and Pa Kettle look - definately stood out - even in our neighborhood.
Interesting how you can get attached to an old piece of crap. Right now our deck has an old wooden table (I got it free somewhere) with most of the finish gone. Even DW (whose eye tends to be less easily offended) wants me
to get rid of it. I love that old table. Spent many happy times out there
with an adult beverage and "Old Man River" flowing by.

JG
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 08:48 AM   #56
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by ex-Jarhead
Unclemick:* Can't speak for the other posters, but my point when I posted was that due to the
change of both myself and my wife's tastes, and spending habits, over the last 19 years since I retired, we find ourselves spending just about the same monthly amount that we started out with when we first retired.* Actual amount, not adjusted for inflation.
Probably beating this point to death, but the change was an evolution, and not a self-imposed tightening up of the purse strings.

Regards, Jarhead

Also taking a chance on beating this to death................

My semiretirement income was next to nothing. Lots of non-income producing
investments and I worked about 20 hours a week for maybe $12 an hour.
Then, I took a fairly lucrative PT gig whcih lasted 4 years. It helped the net worth but my spending jumped right back up to pre ER levels. Then, I retired
for good in 1998 and squeezed every expense down to poverty levels
(nervous about it). As I aged and remarried (2001), spending crept
back up. Bottom line, I went from bare bones to livin' large, back to bare
bones and then with a gradual increase to where we are today. Expect
our total spending to flatten along with NW which has already. Like Jarhead,
none of this was planned, it just morphed into what it is. You can
overplan these things

JG
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 09:08 AM   #57
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Re: Scott Burns -- You're Saving Too Much to Retire

---I think that this post is worth reposting here from dory. It was in another section from a few years ago. I had figured all except didnt think of the income tax differences (consider that if you take 15k out of a 401k/457, etc, it knocks your taxes down once you take out the standard deduction, etc.



Without any spreadsheet, you can make some back-of-envelope calculations about your needs. I suggest this can be much more accurate than a planning tool or a percentage suggestion from anyone who doesn't know the intimate details of your finances.

For a start, your health insurance costs may have changed. Add/subtract that from your preretirement gross income.

Next, subtract that percentage of gross currently going to 401k, Social Security, and after-tax savings and investments. You'll be withdrawing, not contributing, so this goes to zero.

Subtract the percentage of gross currently going to work-related expenses such as commuting, business attire and laundry, and so forth. Maybe costs of a no-longer-needed second car. (Be sure to tell your car insurance people that you no longer commute -- that often saves insurance $$!)

Subtract the income taxes you were paying on your gross income. You'll likely take out the maximum from your IRA (taxable upon withdrawal) to exhaust your standard deductions -- something like $15,000 or so -- and probably take much of the rest from after-tax savings and investments, so you'll only pay tax on the interest and growth, not the principal. So your tax will be probably in the neighborhood of 10% of your spending, or perhaps 2-4% of your preretirement gross income, rather than 20-30%. Add the estimated tax back to your income requirement.

The only thing else is probably based on changes you make. Did/will you pay off the mortgage? Get rid of the 2nd car? Those common changes at retirement time will also reduce your income requirements.

Finally, allow yourself something for spending more time at those hobbies, and maybe some new ones.

Hope this helps!

Dory36
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 09:17 AM   #58
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Re: Scott Burns -- You're Saving Too Much to Retire

Quote:
Originally Posted by TromboneAl


Any statistics on how often this occurs?
--The highest suicide rates of any age group occur among persons aged 65 years and older.

-- The suicide rate among adults aged 65-69 was 13.1 per 100,000 (all rates are per 100,000 population), the rate among those aged 70-74 was 15.2, the rate for those aged 75-79 was 17.6, among persons aged 80-84 the rate was 22.9, and among persons aged 85+ the rate was 21.0.

--Firearms (71%), overdose [liquids, pills or gas] (11%) and suffocation (11%) were the three most common methods of suicide used by persons aged 65+ years. In 1998, firearms were the most common method of suicide by both males and females, accounting for 78% of male and 35% of female suicides in that age group.

From http://www.mentalhealth.org/suicidep...on/elderly.asp 1998 figures.
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 09:24 AM   #59
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Re: Scott Burns -- You're Saving Too Much to Retire

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Originally Posted by Martha
--The highest suicide rates of any age group occur among persons aged 65 years and older.

-- The suicide rate among adults aged 65-69 was 13.1 per 100,000 (all rates are per 100,000 population), the rate among those aged 70-74 was 15.2, the rate for those aged 75-79 was 17.6, among persons aged 80-84 the rate was 22.9, and among persons aged 85+ the rate was 21.0.

--Firearms (71%), overdose [liquids, pills or gas] (11%) and suffocation (11%) were the three most common methods of suicide used by persons aged 65+ years. In 1998, firearms were the most common method of suicide by both males and females, accounting for 78% of male and 35% of female suicides in that age group.

From http://www.mentalhealth.org/suicidep...n/elderly.asp* 1998 figures.
Interesting......no real surprises.

JG
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Re: Scott Burns -- You're Saving Too Much to Retire
Old 07-18-2005, 10:21 AM   #60
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Re: Scott Burns -- You're Saving Too Much to Retire

That's exactly why I never carry a firearm when I play golf.
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