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Old 04-14-2012, 01:05 PM   #41
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Not too worried (what's the point if I can't do anything about it anyway?) mainly because I'll have 2 COLA'd federal pensions. Neither are going to be huge but together, even if I blow through the TSP & IRA's, we should still be able to sustain life. I can take the first, and biggest of the 2 pensions starting in 9 months from now, if I choose. Not huge, around $45k (gross, before health ins., taxes, life ins. & survivor benefit deductions). Probably will end up around $28k net. No state taxes where I'll retire. The 2nd pension kicks in 5 yrs later at age 60, and is my military reserves retirement. Estimate is somewhere between $15k & $18k gross. I need to do the math again, now that I'm actually retired from the reserves. Both pensions will have survivors' bens for the wife.

Wife's 401k won't be huge, but should provide around $500 per month when she retires in 3 yrs. She's eligible for SS at 62, but she's only 50 now so that's awhile to wait. I won't get much in the way of SS, due to WEP. If I take anything from my TSP, it won't be more than maybe another $500 per month, which is not even close to 4%. I was originally thinking I'd take the 4%, but I'm revising my position on that.
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Old 04-14-2012, 02:56 PM   #42
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I stopped working at 50 and I am now 58.

I do not have a pension.

I am a worrier by nature so my solution was and is CASH!

It does not make sense for many reasons but, it is a luxury that I can afford and it allows me to relax. Like J.P. Morgan said sell to your sleeping point. We all need to find a personal sleeping point and it will be different for each of us. My cash reserves will step down when I begin to collect social security and again when I qualify for Medicare. I will start to draw approx. 3% from my investments sometime after age 62 and prior to age 66. If I do go broke before I make it to the finish line I will do what millions of Americans do and that is live on Social Security and the kindness of others, content in the knowledge that at least I tried.
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Old 04-14-2012, 03:16 PM   #43
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Originally Posted by poorgeezer View Post
I stopped working at 50 and I am now 58.

I do not have a pension.

I am a worrier by nature so my solution was and is CASH!

It does not make sense for many reasons but, it is a luxury that I can afford and it allows me to relax. Like J.P. Morgan said sell to your sleeping point. We all need to find a personal sleeping point and it will be different for each of us. My cash reserves will step down when I begin to collect social security and again when I qualify for Medicare. I will start to draw approx. 3% from my investments sometime after age 62 and prior to age 66. If I do go broke before I make it to the finish line I will do what millions of Americans do and that is live on Social Security and the kindness of others, content in the knowledge that at least I tried.
Poor Geez' I guess that's all we can hope for. In the end "we'll never make it out of this world alive" rings true. However I'm in it for the game and go through daily ups and downs regarding RE. Being FI allows me this freedom.
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Old 04-14-2012, 03:29 PM   #44
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A while back he posted From his public profile and what he has chosen to tell us in his public posts on the forum, it seems possible that he lives in Canada also, though. Wherever he lives, he has mentioned that he spends much time away from home working on his charitable health missions. Personally I consider our mysterious obgyn65 to be a citizen of the world, and leave it at that.
... and I think I have tax complications with income and pensions/SS from only 2 countries...
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Old 04-14-2012, 04:12 PM   #45
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Do you not have term life insurance for that purpose?
We do, but I intend to cancel the policy after I retire - by definition if we have enough to support the whole family after I FIRE, then we have more than enough to support the whole family minus me.

I'm not sure if I want to let the kids know that financially will be better off without me around?
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What Me Worry?
Old 04-18-2012, 05:19 PM   #46
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What Me Worry?

Have a pension from mega-corp that covers our current basics. Taxable portfolio covers extras like travel and toys. 401k provides for the future, as we have not had to dip into this yet (almost 5 years FIREd).

YES it definitely alleviated our worries (except for 2008 when the 401k and portfolio went to H*ll in a handbasket). But both are back and we are truck'n along.

No pension would have meant a few more years in the saddle I think. I was lucky ... as it seems I have over-engineered my FIRE.

Although with inflation ...etc. and if we are lucky enough to live a long time, one never knows if it will last. Current course and speed though, it looks fine.

Best of luck to you.
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Old 04-19-2012, 03:53 PM   #47
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Having a pension (though modest and unCOLAd) is helpful in sleeping at night. Perhaps more sleep-inducing is MEGACORP provided group health insurance (and now Medicare which coordinates). True, my total out of pocket health insurance and co-pay bite is significant ($10K to $11K) last year, but at least that is a relatively "knowable" number which should not increase dramatically.

But it's the back-ups which help keep a born worry-wart like me more-or-less sane. First back-up is SS which I'm waiting on until 70 or when I might need it as a back-up for spending. Second back-up is spending cuts (e.g., eat out less, sell one car, cease funding kid's Roths, etc.) Third back up is moving to a lower cost area. I'm sure I can find a place (and life-style) which costs 30% less or even 50% less than my current situation. Included in such a move would be to sell my current dwelling for enough to buy 3 larger dwellings elsewhere.

I hope never to use any of these (or other back-ups) but knowing they are available is probably my number 1 strategy to reduce ER worries. YMMV
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Old 04-22-2012, 08:44 PM   #48
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Good topic. As someone without a defined benefit plan, which as we know is the new "normal", I have definitely been in awe of the significant size of the yearly payout for these plans, especially state and government employees. And you don't have to be a rocket scientist to see why these plans are being phased out, reduced, etc. I have the comfort and sense of empowerment to know that my retirement monies are all in my name, but the pain in knowing that it takes a very large pile of retirement assets to meet the equivalent of some of the defined benefit plans (play around with firecalc and see what it takes to get you 60k/year, a not uncommon yearly payout from the gubment, etc). If I did get an annuity, I would wait until after I know what the greedy b*stards in Washington are planning to do to social security for those who actually saved; lets get real here now, there is a real likelihood that the "po" people (read: those who saved nothing, bought lotto tickets and a lot of beer) will NOT be penalized, but...
Anyway, I digress. I would not buy an annuity until I know the SS situation and only up to the point of my state's insurance guarantee. And therefore, probably around age 67-70.
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