Hi! I'm a Depression Baby Trapped in the Body of a GenXer!

[sweetvirginia]

Hi. I'm happy to have found this group. I am in need of inspiration and maybe a little “you can do it!” style encouragement.

I am 52 year-old librarian in California. My dream is to retire when I’m 57, which may not seem early at all, but would be a freaking miracle for me because it is a lot more pleasurable for me to conserve resources than to spend them. I blame my depression-era grandparents and father for this fiscally conservative mindset. Also, I have a really fun, fulfilling job, and only work 7 months a year when you figure in summer and winter breaks. But I love to adventure with my husband and he just retired and I feel like the world is beckoning a lot more urgently than it was when he was working.

I know very little about the nuts and bolts of investing. I mean, I DO it, because my grandparents told me to do it and keep doing it, but I don't "play the market" or anything. I do diligently contribute to my 403(b), and will occasionally buy some stocks if I've accumulated a lot of cash. I'm very old school and accumulate cash. It drives my husband nuts because money in my savings account (or under my mattress!) isn't “working for me,” but I like to have cash on hand.

Here are some details. Not trying to bore anyone to death, but the helpful welcome email recommended I provide as many details as I feel comfortable with to give people more to work with. I obliged in full!

I have worked in the California community college system since 1999, so I have a STRS retirement that I can tap into once I hit 55.
I am on the "2% at 60" plan and will be 60 in 2028, so it’s better if I wait until end of fall semester 2028 in that regard.
I will have 30 years under my belt effective July 31, 2029, so retiring on or after July 31, 2029 is even better. This had been my plan all along.
I have over one year in sick pay, and I know that figures in there somewhere.
My newly retired husband has no post-retirement health care but is covered under my policy until I retire or he hits 65 and can collect old man insurance. I’ll be 57 when he hits 65 and feel like this is the earliest I should retire. I will get health benefits from the college until I, too, hit 65 and get some old lady insurance. So, December 2025, age….57.
I am taking a sabbatical next year to do a “retirement dry run” (living abroad on reduced income) and will then be obliged to stay two more years after my return to fulfill my obligations. Which, weirdly, also nudges me toward December 2025, age 57. So some stars seem to be aligning for 57, but my skinflint mind keeps getting in the way.

I make around $110K base salary every year for my contract days. I have always worked some in early summer to make a little travel money, but now that my husband is retired I likely won’t be doing that because we can finally start our summer travel in May. Traveling is very much our thing.

My investments:
Current total: $464K
$334K of this is my 403(b) plan.
$60K are in two, small inherited IRAs.
$30K is invested in various mutual and index funds I have purchased.
$40K is languishing in money market account. I'll probably be spending it on investment property soon.

Asset mix (minus my 403(b) plan) is thus:
29.7% Stocks
39.6% Bonds
30.7% Short-term reserves

I keep 10K minimum in my bricks and mortar savings at all times. When it gets bigger I do stuff like buy some stocks or pay a chunk on my home principal or once I bought a house in PA with my husband. Right now I am using “extra” to reroof and update one of my rental properties to bring it up to market value.

I owe $140K on my primary residence (Zillow estimate $439K). My interest rate isn't that low (4.1%) but I HATE mortgage fees and refinancing a house makes me almost as anxious as buying a car. Like I just stepped into Glengarry Glen Ross. I do pay $200 extra to principle every month. Last year I also paid an extra $10K on principal. My balance was high after a poorly planned addition and divorce in 2005. Lol. My current plan is to rent it when I retire and use the proceeds to fund my retirement.

I own another home outright (Zillow estimate $384K). I've been renting it out since 2005. This is the one I’m remodeling because my long-term tenant finally moved out. I am using a special cash savings account I’ve created and contributed to for this purpose, so will have no debt when it is complete. I would like to keep renting it and use the income to fund retirement.

I own half a house outright with my husband in Pittsburgh, PA (Zillow estimate $125K). We rent it out. Right now we just shove all profits into a savings account. Use it for occasional repairs and to pay taxes, but it’s growing steadily and we should probably do something better than letting it sit in the credit union.

I have another year to pay on my 2018 Prius (no interest) and that will likely be my last car. I drove my last Prius for 12 years. I drove it until I had to duct tape it together and then I gave it to my kid (it's still going, duct tape and all) and bought a prettier one that didn't require tape. All of this is to say, I’m not a person who has to have a new car to feel pretty.

Credit cards are paid off in full every month. I use them for EVERYTHING to rack up points for random hotel stays and the occasional gift card. Because, yes, points are another thing I like to save up. lol.

My husband and I have separate money. We split living expenses, buy our own stuff with our own money, and I'd say we are about equal in assets. He’s technically richer than I am, but I have a much nicer ex who kept his hands off my retirement. This is all to say he doesn’t cost me anything, and I don’t cost him anything. Lol. We have invested in one home together, and are looking to do another in the near future.

I have one child. I have paid for her college (she's in grad school right now) and I'd like to leave her a house. My dad paid for my college and left me a house and both of these gifts have provided me lots of options in life. I feel compelled to do the same, not only for my daughter but to honor my dad.

I am excited to be a part of this group. Like I said, although I ALWAYS appreciate advice, it’s the inspiration I think I need most. Wish I was just a tiny bit less risk-adverse.

Cheers!

 

[Safire]

Hi. I'm happy to have found this group. I am in need of inspiration and maybe a little “you can do it!” style encouragement.

I am 52 year-old librarian in California. My dream is to retire when I’m 57, which may not seem early at all, but would be a freaking miracle for me because it is a lot more pleasurable for me to conserve resources than to spend them. I blame my depression-era grandparents and father for this fiscally conservative mindset. Also, I have a really fun, fulfilling job, and only work 7 months a year when you figure in summer and winter breaks. But I love to adventure with my husband and he just retired and I feel like the world is beckoning a lot more urgently than it was when he was working.

I know very little about the nuts and bolts of investing. I mean, I DO it, because my grandparents told me to do it and keep doing it, but I don't "play the market" or anything. I do diligently contribute to my 403(b), and will occasionally buy some stocks if I've accumulated a lot of cash. I'm very old school and accumulate cash. It drives my husband nuts because money in my savings account (or under my mattress!) isn't “working for me,” but I like to have cash on hand.

Here are some details. Not trying to bore anyone to death, but the helpful welcome email recommended I provide as many details as I feel comfortable with to give people more to work with. I obliged in full!

I have worked in the California community college system since 1999, so I have a STRS retirement that I can tap into once I hit 55.
I am on the "2% at 60" plan and will be 60 in 2028, so it’s better if I wait until end of fall semester 2028 in that regard.
I will have 30 years under my belt effective July 31, 2029, so retiring on or after July 31, 2029 is even better. This had been my plan all along.
I have over one year in sick pay, and I know that figures in there somewhere.
My newly retired husband has no post-retirement health care but is covered under my policy until I retire or he hits 65 and can collect old man insurance. I’ll be 57 when he hits 65 and feel like this is the earliest I should retire. I will get health benefits from the college until I, too, hit 65 and get some old lady insurance. So, December 2025, age….57.
I am taking a sabbatical next year to do a “retirement dry run” (living abroad on reduced income) and will then be obliged to stay two more years after my return to fulfill my obligations. Which, weirdly, also nudges me toward December 2025, age 57. So some stars seem to be aligning for 57, but my skinflint mind keeps getting in the way.

I make around $110K base salary every year for my contract days. I have always worked some in early summer to make a little travel money, but now that my husband is retired I likely won’t be doing that because we can finally start our summer travel in May. Traveling is very much our thing.

My investments:
Current total: $464K
$334K of this is my 403(b) plan.
$60K are in two, small inherited IRAs.
$30K is invested in various mutual and index funds I have purchased.
$40K is languishing in money market account. I'll probably be spending it on investment property soon.

Asset mix (minus my 403(b) plan) is thus:
29.7% Stocks
39.6% Bonds
30.7% Short-term reserves

I keep 10K minimum in my bricks and mortar savings at all times. When it gets bigger I do stuff like buy some stocks or pay a chunk on my home principal or once I bought a house in PA with my husband. Right now I am using “extra” to reroof and update one of my rental properties to bring it up to market value.

I owe $140K on my primary residence (Zillow estimate $439K). My interest rate isn't that low (4.1%) but I HATE mortgage fees and refinancing a house makes me almost as anxious as buying a car. Like I just stepped into Glengarry Glen Ross. I do pay $200 extra to principle every month. Last year I also paid an extra $10K on principal. My balance was high after a poorly planned addition and divorce in 2005. Lol. My current plan is to rent it when I retire and use the proceeds to fund my retirement.

I own another home outright (Zillow estimate $384K). I've been renting it out since 2005. This is the one I’m remodeling because my long-term tenant finally moved out. I am using a special cash savings account I’ve created and contributed to for this purpose, so will have no debt when it is complete. I would like to keep renting it and use the income to fund retirement.

I own half a house outright with my husband in Pittsburgh, PA (Zillow estimate $125K). We rent it out. Right now we just shove all profits into a savings account. Use it for occasional repairs and to pay taxes, but it’s growing steadily and we should probably do something better than letting it sit in the credit union.

I have another year to pay on my 2018 Prius (no interest) and that will likely be my last car. I drove my last Prius for 12 years. I drove it until I had to duct tape it together and then I gave it to my kid (it's still going, duct tape and all) and bought a prettier one that didn't require tape. All of this is to say, I’m not a person who has to have a new car to feel pretty.

Credit cards are paid off in full every month. I use them for EVERYTHING to rack up points for random hotel stays and the occasional gift card. Because, yes, points are another thing I like to save up. lol.

My husband and I have separate money. We split living expenses, buy our own stuff with our own money, and I'd say we are about equal in assets. He’s technically richer than I am, but I have a much nicer ex who kept his hands off my retirement. This is all to say he doesn’t cost me anything, and I don’t cost him anything. Lol. We have invested in one home together, and are looking to do another in the near future.

I have one child. I have paid for her college (she's in grad school right now) and I'd like to leave her a house. My dad paid for my college and left me a house and both of these gifts have provided me lots of options in life. I feel compelled to do the same, not only for my daughter but to honor my dad.

I am excited to be a part of this group. Like I said, although I ALWAYS appreciate advice, it’s the inspiration I think I need most. Wish I was just a tiny bit less risk-adverse.

Cheers!

Fellow Californian here, and I think you've done AWESOME so far! You've got paid for homes, minimal debt AND you've paid for your daughter's college - isn't that all there was on your bucket list of things to do / achieve?

I am a lot like you when it comes to risk, in fact, I'm 10x worse because I cannot sleep at night without several months worth of expenses in our bank account. You can get away with a lot less because you have much fewer obligations - in your shoes, I'd probably need / want at least 10K in our accounts, too, baring a pension that fully pays for all of our monthly expenses AND of course no debt. But then, we're still renting with no clue if/when we will ever own a home and our kids are both very young, and the oldest is yet to go through college.

Not sure what else to say except that I want to congratulate you and wish you the best going f/w! If it helps at all, you may want to consider loosening your purse strings a little at a time. Maybe splurge on gourmet coffee once a week or buy artisan cheese once a month .... along those lines. I am also really frugal but I've learned that we have one life to live (regardless of one's religious beliefs in the matter) and a little bit of affordable "luxuries" here and there makes life very pleasurable indeed ... esp when one can actually afford said "luxuries"!

Only question I have is, do you really need both bonds and short term reserves, esp if your job is stable, rent income is assured with property paid off, and if your husband is already retired? Would it be better to be a bit more aggressive with your investments, especially if you want to leave your daughter a solid inheritance?

In any case, you seem to have done very well done, indeed, so far! Take a bow!

 

[OneMarcilV]

Looks like you are doing ok. 110,000 a year is great. That would have taken me about 4 years to earn that much.

I was able to retire.

I have $331.00 in the bank now. I worked 4 months past what I should have and ended owing Social Security like 2500.00. So having to pay that back set me back. I am glad I had a credit card to use to pay my bills.

So this month I will have paid that back. Then I will be in good shape money wise.

Cause I can live on how much monies I get from Social Security.

I am able to pay bills late by contacting the companies I owe to let the peeps there when I will pay the bills.

Once I get my full amount again I will be able to keep up with bill payments.

So good luck when you retire.

 

[Irishgirlyc58]

Hi! Fellow Californian here and soon to be a CalPERS retiree.
I know CalSTRS is slightly different than CalPERS but I would check on that effect of the sabbatical year on your service credits. Service credits will make a difference in your retirement calculation.

I know nothing about investing. I have a 457b account that I plunk money into every payday and check the balance on once in a while.

 

[sweetvirginia]

Fellow Californian here, and I think you've done AWESOME so far! You've got paid for homes, minimal debt AND you've paid for your daughter's college - isn't that all there was on your bucket list of things to do / achieve?

Thank you for your kind words! But, no, there is the whole "finish my life traveling abroad" item that lives at the end of my list in big, bold, red letters. But, yes, getting my finances in order and getting my daughter educated feel like prerequisites to an adventure-filled final chapter.

(...) But then, we're still renting with no clue if/when we will ever own a home and our kids are both very young, and the oldest is yet to go through college.

Home ownership in California is nuts. I was lucky to be my dad's only child. He was a tv repairman who never got to go to college and he was CRAZY DEVOTED to me being educated and successful. I put the downpayment on my first house by using PG&E stocks he started buying me when I was a young adult. He put me on the deed to his house long before he died, and then transferred it to me years before he got dementia. I just say this because, yeah, I've always worked hard, but I was also had a LOT given to me. I had a strong head start. Not an old money head start, but a head start nonetheless.

Not sure what else to say except that I want to congratulate you and wish you the best going f/w! If it helps at all, you may want to consider loosening your purse strings a little at a time. Maybe splurge on gourmet coffee once a week or buy artisan cheese once a month .... along those lines. I am also really frugal but I've learned that we have one life to live (regardless of one's religious beliefs in the matter) and a little bit of affordable "luxuries" here and there makes life very pleasurable indeed ... esp when one can actually afford said "luxuries"!

Ok, so I'm frugal in so many ways. Thrift store clothes, stock up sales, coffee at home. But we spend a ton of money on food and drink and travel. If I forget a towel at yoga, I won't ever, EVER, pay $2 to rent one, but I'll fly business class to France. I'll wear $3 shirts until they wear hour, but almost always let the wait staff pick my wine. That is actually my fear about retiring: my devotion to high end meals and balls to the wall travel. I don't want to live quietly when I retire, I want to eat and drink and travel like I do every summer.

Only question I have is, do you really need both bonds and short term reserves, esp if your job is stable, rent income is assured with property paid off, and if your husband is already retired? Would it be better to be a bit more aggressive with your investments, especially if you want to leave your daughter a solid inheritance?

I think you are probably right. I WISH I could be more aggressive. To be honest: I'm just so afraid of f*cking it all up. That's what keeps ME up at night. A potential miscalculation that will cut my legs out from under me. Because, yeah, I definitely feel I have one life to live and now I'm getting to the final part of it and I want finish strong.

Hey, thank you for being my very first responder! And for being so kind and encouraging. I wish you all the luck in the world. I think you rock.

 

[sweetvirginia]

Hi! Fellow Californian here and soon to be a CalPERS retiree.
I know CalSTRS is slightly different than CalPERS but I would check on that effect of the sabbatical year on your service credits. Service credits will make a difference in your retirement calculation.

Such an excellent point! I've discussed this with HR at my college. One can decide to "pause" STRS for sabbatical year (and keep their contribution to supplement reduced income) but I am not going to do that. I AM going to suspend my 402(b) contributions and just spend that money on my adventure. I figure I'm saving that money to live large when I'm 60, so why not spend it living large when I'm 53? But, no, I'm not screwing around with my STRS contributions. Apparently if I keep contributing my year off will still count toward my service credit. So, definitely going to keep that going. Since I will have at least 25 years of service credit when I retire (even if I get my nerve to retire at 57), I know STRS will use my highest salary to calculate benefits. If I had worked less than the requisite 25 years they'd average last three years and that 70% sabbatical would be a real problem.

 

[sweetvirginia]

I know nothing about investing. I have a 457b account that I plunk money into every payday and check the balance on once in a while.

Dude, that is totally how I started at the advice of my grandpa! Not a 457b but a 403b. But just plunking what I could afford every month and hoping for the best. Eventually I started upping my contribution when I would get raises. Investing raise and continuing to live on what I'd always lived on. A few decades down the line and I wish I could thank grandpa. Pretty painless way to accumulate assets. GOOD LUCK and KEEP GOING!

 

[Markola]

Hi from a fellow GenXer. With your built-in frugality, you can adapt your lifestyle if need be, so that’s likely your primary super power to be able to weather any storm. If you and DH can simply aim for delaying Social Security until 70, that would put yet another safety belt on your plan.

You sound like the type who might enjoy reading the canonical early FIRE book “Your Money Or Your Life” by Vicki Robin and Joe Dominguez, if you haven’t. It’s still very inspirational to a lot of us and Vicki is still writing.

 

[sweetvirginia]

You sound like the type who might enjoy reading the canonical early FIRE book “Your Money Or Your Life” by Vicki Robin and Joe Dominguez, if you haven’t. It’s still very inspirational to a lot of us and Vicki is still writing.

Thank you. I just ordered this.

 

[ugeauxgirl]

Welcome! I'm also a Gen Xer- I retired 18 months ago. Sounds like you are on the right track. You're going to love retirement!

 

[Markola]

Thank you. I just ordered this.

Enjoy. Now I can say, I introduced a book to a librarian!

 

[sweetvirginia]

Enjoy. Now I can say, I introduced a book to a librarian!

 

[ocean view]

Welcome. Your frugality on everyday things, but live large on your travels sounds a lot like another member here, Robbie B. His catchphrase is “blow that dough”. He also happens to live in your neck of the woods. Is there something in the water?

 

[Irishgirlyc58]

Dude, that is totally how I started at the advice of my grandpa! Not a 457b but a 403b. But just plunking what I could afford every month and hoping for the best. Eventually I started upping my contribution when I would get raises. Investing raise and continuing to live on what I'd always lived on. A few decades down the line and I wish I could thank grandpa. Pretty painless way to accumulate assets. GOOD LUCK and KEEP GOING!

Thanks! I’m actually retiring at the end of this year so what I have better be enough. [emoji23]

 

[Safire]

Thank you for your kind words! But, no, there is the whole "finish my life traveling abroad" item that lives at the end of my list in big, bold, red letters. But, yes, getting my finances in order and getting my daughter educated feel like prerequisites to an adventure-filled final chapter.

"Final chapter?" NOOOOOOO.... We Gen X-ers have only JUST BEGUN to enjoy the best years of our lives! We have a ways to go!

Home ownership in California is nuts. I was lucky to be my dad's only child. He was a tv repairman who never got to go to college and he was CRAZY DEVOTED to me being educated and successful. I put the downpayment on my first house by using PG&E stocks he started buying me when I was a young adult. He put me on the deed to his house long before he died, and then transferred it to me years before he got dementia. I just say this because, yeah, I've always worked hard, but I was also had a LOT given to me. I had a strong head start. Not an old money head start, but a head start nonetheless.

At the same time, you didn't just sit back and live on what you were left. You independently also built wealth and can afford luxuries now on your own dime, and can live on your own terms. I completely understand your brand of frugality - spend on quality and spend on the things that truly make a difference to you. Love it!

I don't know if you should worry about outliving your money. If you get a pension, have minimal debts and don't over withdraw your a/c beyond what FireCalc says is a reasonable withdrawal rate for you, you should be just fine.

Not sure if you mentioned this already or not but have you considered LTC, just in case you need it, and especially because you want to leave your child a solid inheritance?

Speaking of France, that is where we hope to find ourselves for a few weeks one Summer once this pandemic is behind us. Wish us luck! I would also love some travel tips through France, best places to stay, etc if you can. Thanks!

 

[Extra Medium]

Enjoy. Now I can say, I introduced a book to a librarian!

That's great! I love this book, and just ordered a copy to have around the house to review (and teach my daughters), and another to give to my nephew on his college graduation (I read it from my local library!). I have one more that I think demystifies stock market investing in very plain, simple terms: The Simple Path to Wealth, by JL Collins.

I love your approach to frugality, of keeping your spending high where you get the most joy from it. We had some friends who would always say, "We'd rather never buy coffee from our neighborhood coffee shop, but instead drink it in Paris".

It also reminds me of advice I got in a bike shop when I asked what I should upgrade on my bike if I get a little extra money. He said to get a high-end saddle or pedals, as those are the parts where your body makes contact. If you feel comfortable, you'll have fun at any speed.

 

[Vacation4us]

How much rental income do you make? What is your estimated pension if you retire at 57? Do you have to wait to collect until your 60? If your pension and rental income can cover most if not all your expenses your golden.

Your investments are way to conservative and have cost you big $$. Trying moving to a very conservative 50/50 or better yet 60/40 asset allocation and long term you will reap the rewards. If the thought of moving to much into the market gives you anxiety just start by putting “new” money in to a total stock market fund.

Refi your house it’s not that hard. I did my last refi in 2012 all over the internet. You have your w2’s from doing your taxes don’t you? You make sufficient income just choose a no cost refi for 10 or 15 years. Easy peasy and what a huge savings. I no brainer for a frugal gal like you!

Best wishes!