NYTimes: Boot camp to get in shape for retirement

[LOL!]

Here's a good article by Tara Siegel Benard about steps a pair of financial advisors use to make sure their clients are financially ready for retirement.

http://www.nytimes.com/2009/07/25/your-money/25money.html?the_white_house

You know the drill: spending, net worth, insurance, goal setting, increase savings, tax planning, charitable giving, estate planning, and pseudoretirement.

 

[W2R]

Interesting article - - thanks.

They point out that retirees suddenly have no place to be each day, which may not be as blissful as it seemed beforehand. The paychecks stop coming. And after years of dutifully putting money into savings, retirees have to get used to watching their accounts dwindle.

I have been musing on these aspects lately. I think I will be blissful anyway, but it is hard to know what it will feel like until I actually experience these things. I am not worried so much about not having money available, but actually watching my accounts dwindle sounds like going through 2008 every year for the rest of my life.

 

[growing_older]

Wow, these "advisors" charge 1.35% of assets annually. That better be excellent advice.

 

[LOL!]

Wow, these "advisors" charge 1.35% of assets annually. That better be excellent advice.

I saw that and thought the charge was ridiculous, but maybe all their clients have only $10,000 to invest?

But that notwithstanding, I liked alot of the ideas presented. In particular, totally maxing out retirement plan contributions even if it required getting out of non-qualified savings. And also shifting from donating money to charities to donating your time. My spouse is now running some kind of SalesForce application for a charity which looks like real full-time sales job to me. I just hope she stops donating money to the cause soon. And the last idea of practicing retirement while still working. That is, make your vacations the kind of vacations that you would do when retired. Make your week-ends the kind you have when retired. Maybe take a day off of work mid-week to see what its like.

 

[Moemg]

I slowly worked my way into retirement by working less and less . In my last year I only worked one day a week but retirement was still different . It took me about eight months to get a new life that is still evolving .

 

[mickeyd]

I smile @ articles like this.

I guess that means that I'm saving myself $13,500 by managing my first mil and the same amount on any additional. Making/saving over $1k/month just sitting on my a##. Life is good.

 

[Khan]

Let’s say you and your spouse earn a combined $150,000 a year and you’ve been saving about 10 percent, or $15,000, in your 401(k)’s. After taxes (federal, state and FICA), you have income of about $92,800 a year, or about $7,730 a month. During boot camp, you both would disproportionately save a total of $44,000. That leaves you with about $73,300, or $6,110 a month (after taxes). That means you need to withdraw an additional $1,620 from your cash savings to make up the difference, which models what you’ll need to do in retirement.

They lost me sometime before this.

 

[REWahoo]

They lost me sometime before this.

You obviously need the services of a FA to explain the complexities of retirement finance...

 

[Nords]

Wow, these "advisors" charge 1.35% of assets annually. That better be excellent advice.

Once again people with only theoretical knowledge and no practical experience of retirement get to charge big money for attempting to transfer a tiny minority of their small amount of knowledge to people who are even more ignorant.

And the instructors can't even handle a debate over whether or not to pay off the mortgage. They'd last a month tops on this board.

Is America a great country or what?!?

 

[unclemick]

Hmmm - pssst Wellesley and go fishing in your spare time doesn't cut it?

I haven't spent a lot time reflecting on the gear skip between my ears as I made the mental transition between unemployed and ER back in the 90's.

I guess I missed a chance to franchise/write a book/FA or otherwise unload a 'pile of er stuff/great knowledge' on a bunch of innocent suckers/er willing customers.

heh heh heh - Now where did I put that Curmudgeon certificate? .

 

[JOHNNIE36]

Hmmm - pssst Wellesley and go fishing in your spare time doesn't cut it?

I haven't spent a lot time reflecting on the gear skip between my ears as I made the mental transition between unemployed and ER back in the 90's.

I guess I missed a chance to franchise/write a book/FA or otherwise unload a 'pile of er stuff/great knowledge' on a bunch of innocent suckers/er willing customers.

heh heh heh - Now where did I put that Curmudgeon certificate? .

unclemick, I have it!! Someone gave it to me a couple months ago after bitching about something for days. Now that I'm over it, I will pass it on to you. Good luck.

 

[mews]

ah ha! The Curmudgeon's Guide to REtirement !!

The 7-figure signing contract!

The book tour!!

The crowds of screaming groupies!!!

I can see it now!!!!

Start typing, willya?!?!?

ta,
mew

 

[Alan]

Once again people with only theoretical knowledge and no practical experience of retirement get to charge big money for attempting to transfer a tiny minority of their small amount of knowledge to people who are even more ignorant.

More unmarried marriage guidance councellors

I am not worried so much about not having money available, but actually watching my accounts dwindle sounds like going through 2008 every year for the rest of my life.

I wish my accounts only "dwindled" in 2008

Dwindling I think I can cope with .... but like you I'll find out soon.