Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
ER checklist
Old 11-15-2009, 06:37 PM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,834
ER checklist

Here's the deal, I'm 48 and in 4 years time the mortgage will be paid off and I'll be able to ER comfortably. I'm starting to think what life will be like without the warm fuzzy blanked of employment....ie none of those benefit things. I'm set as far as health insurance goes as I live in MA and the state has worked with insurers to provide some reasonable plans. But what other things should I be doing to get ready for the big day. What's your checklist to prepare. here are a few I have

1) Join AARP at 50
2) Buy health insurance
3) consolidate finances, set up CD ladder
............
__________________

__________________
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-15-2009, 06:40 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,068
Skip #1 and go straight to #2. I've never found the benefits of belonging to AARP worth the cost. I'm not renewing my membership when it expires in a couple of weeks. Nothing to do with their politics, purely a financial decision.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 11-15-2009, 06:45 PM   #3
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,068
One more thing...

You might find this thread useful: How do/did you prepare for ER?
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 11-15-2009, 06:58 PM   #4
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,823
I do not belong to AARP.

Your asset allocation and portfolio are probably going to be different as a retiree, than they are now in the accumulation phase. You will probably want to be gradually moving to a more conservative portfolio, and so on. If you have your retirement portfolio in place a year or so before you retire, then you can have a "dry run", and see the actual yield without having to withdraw from it.

Also, you can mentally set aside a larger-than-usual emergency fund, in case the unexpected happens (such as a pension taking a few months to get in place, or another market dive).

See a lawyer to draw up a will and make an estate plan.

Make a list of things you want to do when you retire.

Take care of (or set aside money for) those big expenses that you know are coming up very soon, such as a new roof or new car. That way you can hopefully live on a little less during those crucial first years of ER.

Keep track of every cent you spend for these four years, so that you know you have a realistic budget in mind.

If you are getting retirement benefits from your work, make a list of questions you may have about them and find the answers.

I am sure there are many more things for your checklist, but these are what came to mind.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 11-16-2009, 06:50 AM   #5
Full time employment: Posting here.
 
Join Date: May 2007
Posts: 530
If you have any home improvements you want to make, consider doing it before you retire. It doesn't make much difference financially, but you may feel more comfortable spending a large chunk of cash while you still have income (I regret not doing a bit more of this before I left megacorp).
__________________
ksr is offline   Reply With Quote
Old 11-16-2009, 12:07 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Pay off mortgage prior to ER.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 11-16-2009, 05:11 PM   #7
Recycles dryer sheets
heyduke's Avatar
 
Join Date: Aug 2009
Posts: 348
Quote:
Originally Posted by ksr View Post
If you have any home improvements you want to make, consider doing it before you retire. It doesn't make much difference financially, but you may feel more comfortable spending a large chunk of cash while you still have income (I regret not doing a bit more of this before I left megacorp).
... likewise plan any major medical "repairs" now while you have better coverage... my wife will get her eyes done before we ER
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
heyduke is offline   Reply With Quote
Old 11-16-2009, 07:12 PM   #8
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,675
Study all the retirement investing & withdrawal strategy white papers/books available out there - Bengen, Guyton, Bernicke, Bob Clyatt, Otar, Bodie, Milevsky and others. I think a sound knowledge of the underpinnings of your plan is essential to your being able to follow it when times are rough. Choose your investment and withdrawal strategy only after you've studied them all.

Put your numbers through as many calculators as you know off. Then ask why they are different and be comfortable with your understanding of the differences and how they may apply to you.

I assume you are already tracking your expenses and portfolio. Keep doing that since it is the basis of your projections.

Live your ER budget before you ER. I can't tell you how good it felt to KNOW, before we ER'd, that our budget was realistic & well padded.

The link that REWahoo posted is terrific!
__________________
walkinwood is offline   Reply With Quote
Old 11-16-2009, 09:05 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Quote:
Originally Posted by nun View Post
Here's the deal, I'm 48 and in 4 years time the mortgage will be paid off and I'll be able to ER comfortably. I'm starting to think what life will be like without the warm fuzzy blanked of employment....ie none of those benefit things. I'm set as far as health insurance goes as I live in MA and the state has worked with insurers to provide some reasonable plans. But what other things should I be doing to get ready for the big day. What's your checklist to prepare. here are a few I have

1) Join AARP at 50
2) Buy health insurance
3) consolidate finances, set up CD ladder
............
consider
1) figure out retirement budget requirements
2) compare to expected income/withdrawal
...if they 'compute' ...
then do your # 2 and 3.
Feel free to do your #1 if you feel like it. I think it's a waste of 12 bucks. I let my 'free' membership (from Walgreens last year) lapse, since I found no benefit. It seems that. IMHO, at best, they are touts for insurance companies and push some of their own political agendas without properly representing their membership.

another thought. if you can, make sure that you properly assess your and your partners risk tolerence level. I found that my DW was lower than we thought and that does cause some uncomfortable discussions.

also over-engineer (i.e. have a lot of 'fluff' in your) retirement portfolio
... it makes tough times a bit easier to handle.\

best of luck to you
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 11-24-2009, 08:21 PM   #10
Dryer sheet wannabe
 
Join Date: Nov 2009
Posts: 10
Many forum members have suggested to drop AARP, I don't know if you have looked at other auto insurance costs outside of aarp and I also don't know if your young age makes a difference with insurers.

I do know that my wife and I saved well over $300/yr to go with AARP recommended Auto Insurer (including a substantial insurance coverage increase) Had we kept coverage the same as with our previous auto insurer, the savings would have been even more!

AARP is good for some issues and not so good for others! Like everything in todays society, compare everything to your advantage and then use it if it benefits you! If you can spend $20-30 & then save $200-300 why not??

The big kicker as I see it is being sure you know where you are at all times on health care insurance costs! This is a time of change, for everything! Never presume you have health care costs under control! Outside issues control your costs, not you!

Early retirement can be great but these times can be a bit trying as far as CD Laddering goes. It is important to focus on available COH and next CD date etc.

Our own personal thoughts are to maintain a "Capital Status Quo" in other words we maintain our capital base and use earned interest against that capital base as living income...pretty simple & nothing new! Everyone has been doing it for a long time! Just hard to accomplish!!

Obviously the goal is to generate enough income in interest and yet be able to draw down on the capital to last your lifetime or leave enough for beneficiaries if that is a consideration.

Having the Mortgage paid off is great but there are other cost issues to take into effect that can certainly affect your retirement abilities. Be sure you have addressed them all....'nough said!
__________________

__________________
moreorless is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Checklist for getting ready to ER RunningBum FIRE and Money 6 10-06-2007 02:45 PM
All In One Retirement Checklist From Schwab Patrick FIRE and Money 14 11-17-2006 10:11 PM
Checklist for last working months? Roger_R FIRE and Money 3 10-21-2006 11:44 AM

 

 
All times are GMT -6. The time now is 03:54 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.