OnIslandTime
Dryer sheet aficionado
- Joined
- Dec 11, 2016
- Messages
- 26
I thought that the topic about people not running the numbers was going to be about this subject. I see a lot of people not running the numbers about their retirement...they are waiting until some date that is not/will not be their decision.
For example, I work with a 65-yo person who plans to work to 70, "because his social security will be the biggest then". Just looking (from the outside) at his work history (many years technical work at high pay at megacorp), his life style (kids grown and established for years, no high dollar hobbies, no travel, house probably paid for), his retirement plans (wants to putter around at home), I'm guessing he could retire today and live out his dream retirement. He, however, is driven to work until what I consider an artificial deadline; he speaks of it as if only an idiot would do it any other way. So while he obviously understands numbers, I don't believe he has ever run the numbers for his actual situation.
I confess, that we always wanted to retire early, but we always kind of went at it by salting away money and looking to see if we were ready...that is, until we got closer and we bought the place we are planning to retire to. I wonder if it is because we are looking at it as retiring "to" something rather than retiring "from" something, that drives us to run the numbers recently.
I've pointed several people at this forum and firecalc and had some come back and tell me they were closer than they thought. Actually, I believe that everybody who has actually taken a look (i.e., they ran the numbers) has discovered they can retire sooner than they thought.
I understand that many people believe they have to work until their health forces them out of it, but I think even many of those folks could probably retire and enjoy some years of freedom, but they don't know how to run the numbers and figure it out. The good news is that today many of these people may be in better shape than they know because they may have some pension money and social security and a bit of IRA/401k money. With the disappearance of pensions and the likely future social security haircut, in the future many in our consumerist culture will probably not be so lucky.
Sadly, I think too many people are scared of math itself and scared of money math specifically and just sort of bumble along letting the "system" tell them what they can afford and when they can retire. Or maybe the "system" keeps letting them buy stuff and they know they are just barely getting by on their paycheck and anything less wouldn't work.
This forum and firecalc are very helpful, because folks can get educated and run the numbers in private (don't have to let a financial person/broker dig around in your business or try to sell you something). I will continue sending folks to these powerful resources.
Anyway, I'm not sure what the point of this rambling message is other than wouldn't it be nice if somewhere along the way everybody learned how to deal with money...besides just spending it as quick as you get it.
For example, I work with a 65-yo person who plans to work to 70, "because his social security will be the biggest then". Just looking (from the outside) at his work history (many years technical work at high pay at megacorp), his life style (kids grown and established for years, no high dollar hobbies, no travel, house probably paid for), his retirement plans (wants to putter around at home), I'm guessing he could retire today and live out his dream retirement. He, however, is driven to work until what I consider an artificial deadline; he speaks of it as if only an idiot would do it any other way. So while he obviously understands numbers, I don't believe he has ever run the numbers for his actual situation.
I confess, that we always wanted to retire early, but we always kind of went at it by salting away money and looking to see if we were ready...that is, until we got closer and we bought the place we are planning to retire to. I wonder if it is because we are looking at it as retiring "to" something rather than retiring "from" something, that drives us to run the numbers recently.
I've pointed several people at this forum and firecalc and had some come back and tell me they were closer than they thought. Actually, I believe that everybody who has actually taken a look (i.e., they ran the numbers) has discovered they can retire sooner than they thought.
I understand that many people believe they have to work until their health forces them out of it, but I think even many of those folks could probably retire and enjoy some years of freedom, but they don't know how to run the numbers and figure it out. The good news is that today many of these people may be in better shape than they know because they may have some pension money and social security and a bit of IRA/401k money. With the disappearance of pensions and the likely future social security haircut, in the future many in our consumerist culture will probably not be so lucky.
Sadly, I think too many people are scared of math itself and scared of money math specifically and just sort of bumble along letting the "system" tell them what they can afford and when they can retire. Or maybe the "system" keeps letting them buy stuff and they know they are just barely getting by on their paycheck and anything less wouldn't work.
This forum and firecalc are very helpful, because folks can get educated and run the numbers in private (don't have to let a financial person/broker dig around in your business or try to sell you something). I will continue sending folks to these powerful resources.
Anyway, I'm not sure what the point of this rambling message is other than wouldn't it be nice if somewhere along the way everybody learned how to deal with money...besides just spending it as quick as you get it.