Just Turned 60, Feeling REALLY Ready to Retire

[SoReadyToRetire]

SoReady2: Thanks for joining and THE Question. Something that I keep running into when calculating "can I now" (which is 6yrs for DW & me) is what is the yearly health cost between ER and 65. If your gene pool is unlucky it will be largest expense at 64. However if you know it be near zero at 64, why not now? Get quotes is the best answer I get...

The other big question mark is your 401K earnings between now and SS. If the SP500 looses half its value 6 months after ER do you have the nerves (& resources) to wait two years for it to come back before withdrawing anything?

Unrelated question: We are thinking of moving to New England. Do you go across the border into NH for tax free shopping or Canada for cheaper Rx? Thanks!

Hi, SnowBound! Thanks for the welcome and the feedback. We personally don't go into NH to shop tax-free since (a) we're on the western side of Vermont, and (b) clothing and food are still tax-free here. Where are you thinking of moving to? I hope you're incredibly liberal if you're moving here! Oh, and no, we don't go into Canada for Rx, either. I'm very lucky in that I'm real healthy, and my hubby is on just one medication for his Crohn's at this time. We're both still working; my insurance is great, and his is reasonable, so we make do with what we can get here in VT.

 

[SnowBound]

Thanks about the tip on VT is food/clothing tax free. We are extremely conservative, sounds like there needs to be more balance & we will help. Looking for land well north of Bethlehem NH.

 

[trumpeting_angel]

Living on the Eastern side of Vermont, we go weekly into NH for shopping. It’s the closest large supermarket.

Not all of Vermont is as liberal as Burlington! I live in a tiny town (pop. ~650), and although it’s still a fairly liberal area, I would say there’s enough mix to keep it interesting.

New Hampshire is beautiful and the lack of income taxes should make a difference. Watch out for property taxes, though, and limited services.

Good luck and welcome in advance to Northern New England!

 

[trumpeting_angel]

Soreadytoretire, if the job stress is huge it may impact your memory. Mine is not what it used to be; I’m 65. I find that I recall most everything just fine in my non work days. Then in the 3 days/week I’m working, not as good. It feels like the pace is too fast and there’s always something new, too much to process.

OTOH, if your memory is declining it may contribute to feeling so stressed at work. I’m a psychologist and I recommend cutting back if you can, and learning some stress management techniques. Hope the unsolicited advice is not terribly unwelcome!

 

[Teacher Terry]

So your mom has only spent 25k in the last 7 years? Maybe I am tired and reading this wrong.

 

[NH Hiker]

New Hampshire is beautiful and the lack of income taxes should make a difference. Watch out for property taxes, though, and limited services.

NH does also have a 5% tax on interest and dividends with some exclusions for tax free NH bonds and US securities plus a deductible. No income tax is great if you are working making the big bucks, but not so great if you are retired. There is no tax on short or long term capital gains.

 

[SoReadyToRetire]

So your mom has only spent 25k in the last 7 years? Maybe I am tired and reading this wrong.

Her savings has only gone down by that much. My brother lives with her and pays a little bit of rent when he's working. And my sisters and I do a lot for her ... but yes, you read that right. She owns her home outright, which is a big help.

Also, when I said above that we live on $2400/month, that's our BUDGETED expenses--taxes, electricity, cable, home & vehicle insurance, and groceries. Those are our only must-pays. (I include groceries because my husband eats gluten free, which costs a FORTUNE.) The rest I consider discretionary, as in it could be cut out/down if needed. We do spend a fair amount on gifts and misc.

 

[Carpediem]

It feels like the pace is too fast and there’s always something new, too much to process.

I'm about to turn 60 and still working. The quote above hits home with me as it perfectly describes how I feel while at work. Plus it's worsened by the fact that I have no desire to be there and doing what I'm doing. I always wonder if this is the "you'll know when it's time" feeling that a lot of people talk about when deciding to retire.

 

[klscaz]

Retire at 60

I retired in April and turned 60 in June. I was able to purchase healthcare through my employer at a cost. We live in CT and pay $900 per month total including my husband's Part B premium. He is 67 and retired 1.5 years ago which also factored into my decision to retire.

Presently, I'm still struggling with adjusting to the change financially and think that I will feel better when the first year is over. It is daunting to go from the accumulation phase to spending down your savings.

Emotionally, I have no regrets and would urge the original poster to take the plunge once all of the numbers work out! You may want to consult a fee-only advisor to validate your plan.

 

[Octogirl]

Soreadytoretire. -Thanks for post and starting this conversation.

I still work full time but notice that I am losing motivation to take on any work but the minimum. My boss recently complimented my "work ethic" which is probably another reason I want to retire in 2019. I never wanted to be seen as deadwood at work.

 

[nvestysly]

I'll reiterate what several others have said...

You need a very good (detailed) understanding of your expenses to know if you can retire. It appears you have a good start but a more detailed spreadsheet will go a long way toward helping you realize where the money goes now and how that will change when you retire.

After that, FIRECalc and other planning tools, will assist you in understanding how long the money will last.

Sounds like you're on the right track. Dotting a few i's and crossing a few t's will give you the confidence to take the plunge!

 

[aja8888]

I retired in April and turned 60 in June. I was able to purchase healthcare through my employer at a cost. We live in CT and pay $900 per month total including my husband's Part B premium. He is 67 and retired 1.5 years ago which also factored into my decision to retire.

Presently, I'm still struggling with adjusting to the change financially and think that I will feel better when the first year is over. It is daunting to go from the accumulation phase to spending down your savings.

Emotionally, I have no regrets and would urge the original poster to take the plunge once all of the numbers work out! You may want to consult a fee-only advisor to validate your plan.

Ex-Southbury resident welcoming you to the Forum!