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Key Ages for Early Retirement
10-02-2009, 08:41 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,204
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Key Ages for Early Retirement
I was planning on asking the group here to help me build a table of retirement milestones, and then while reading the new Bogleheads Retirement book, there was a basic table on pg 204 ( plus my unique adds and updates in red)! But are there any other significant milestones you can add to help me complete the table? If nothing else, I can put the milestones in Outlook (at work) for laughs...
Yr turning Age 50 | Catch-up provisions allow additional funding of IRAs and 401k plans | Age 55 | May be able to withdraw 401k funds if still with employer until age 55 | Age 56 | Eligible for 75% of (very small) MegaCorp pension | Age 59½ | Can withdraw earnings from IRA without penalty | Age 61 | Eligible for 100% of (very small) MegaCorp pension | Age 62 | Eligible for early Social Security benefits | Age 65 | Medicare becomes available | Age 65 | Able to withdraw from HSA for non-medical purposes without penalty (taxes only) | Age 66 | Full SS retirement benefits for those born before 1955 | Age 67 | Full SS benefits for those born in 1960 or later | Age 70 | Should start taking SS benefits (124-132% of full), as they stop increasing beyond age 70 | Age 70½ | Required minimum distributions (RMDs) begin for traditional IRA and 401k accounts | Age 108 | "End of Plan" | Never | Mandatory distributions from Roth IRA or Roth 401k accounts |
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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10-02-2009, 08:49 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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You can add (for those people for whom it's relevant):
Age 65: Able to withdraw from HSA for non-medical purposes without penalty (taxes only)
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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10-02-2009, 09:17 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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The first one labeled age 50, is really age 49 for many folks. As long as you are age 50 on 12/31/2xxx you can use those catch-up provisions.
My spouse has a birthday late in the year. If she had not been aware that she was able to use the catch-up while still only age 49, then she would not have been able to get that extra $5,000 out of her paychecks by year-end. Since she was aware, she set her contribution rate starting in the beginning of the year.
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10-02-2009, 09:19 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Also I think non-spousal inherited Roth IRAs do have mandatory RMDs. This seems to fly under the radar as well.
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10-02-2009, 09:41 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 2,171
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Maybe another relevant age to add to this list is one's life expectancy, based on one of those "how long will you live" quizzes, or just an educated guess based on how long your parents and other relatives lived.
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10-02-2009, 09:46 AM
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#6
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by kyounge1956
Maybe another relevant age to add to this list is one's life expectancy, based on one of those "how long will you live" quizzes, or just an educated guess based on how long your parents and other relatives lived.
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Since Midpack plans to put these milestone dates into his Outlook calendar, an entry of "DEATH" might be a little discouraging....
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Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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10-02-2009, 09:49 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Quote:
Originally Posted by kyounge1956
Maybe another relevant age to add to this list is one's life expectancy, ...
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10-02-2009, 09:53 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: Kansas City
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10-02-2009, 10:08 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: NC
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LOL. I actually thought about "death" as a joke, but thought it might offend some of our more sensitive audience members.
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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10-02-2009, 10:29 AM
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#10
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
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10-02-2009, 10:57 AM
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#11
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 120
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I retired from the Boeing Company. A few years ago, they published a chart that showed how many people retired from Boeing at various ages. The 4 most popular ages for retirement were/are 55, 60, 62, and 65. I will limit myself to just these 4 because I can account for why people retired at these ages. I have no idea why people retired at other ages other than it was time to get out of Dodge.
The 55 and 60 ages are probably related to the way Boeing's former defined benefit retirement plan worked (at least as I understand it). Supposedly, you could retire at any age provided that you had vested in the retirement plan (which took 5 years if I remember correctly). HOWEVER, if you retired before 55, you only received a small fraction of what you were otherwise entitled to. At age 60, you got 90% of what you were entitled to (which was a dramatic increase compared to the percentage for younger people). This percentage increased year by year until it reached 100% at year 60.
62 is of course the first year for SS. For Boeing, this is far and away the most popular age for retirement.
65 is the traditional retirement age.
The order in popularity for the top 4 is 62, 55, 60, 65.
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10-02-2009, 11:00 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: NC
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Quote:
Originally Posted by Dudester
62 is of course the first year for SS. For Boeing, this is far and away the most popular age for retirement.
The order in popularity for the top 4 is 62, 55, 60, 65.
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Interesting. I'd never stopped to think about it, but matches with what I've seen first hand too. My last two retirees were indeed 62...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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10-02-2009, 11:21 AM
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#13
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by Midpack
Interesting. I'd never stopped to think about it, but matches with what I've seen first hand too. My last two retirees were indeed 62...
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Personally, I think the ideal retirement age is 61 years, 5 months, and 1 day...
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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10-02-2009, 02:46 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Short timer -- Good luck.
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10-02-2009, 03:54 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Here's a new row...
Pre-55: Do a Johnny Paycheck move if FI
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10-02-2009, 04:14 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 2,171
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Yeah, I can see where sensitive individuals might be disconcerted by "DEATH" popping up on the day's "to do" list!
However, mightn't it be a good idea to put an entry in the calendar, say, a year or so before the date you planned your portfolio to last until, for "Portfolio Review & Revamping"? If at that point you are still healthy, and it looks like you could outlive your money, perhaps it would be advisable to switch some assets over to (dare I say it?) some sort of annuity.
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10-02-2009, 04:31 PM
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#17
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
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Quote:
Originally Posted by kyounge1956
Yeah, I can see where sensitive individuals might be disconcerted by "DEATH" popping up on the day's "to do" list!
However, mightn't it be a good idea to put an entry in the calendar, say, a year or so before the date you planned your portfolio to last until, for "Portfolio Review & Revamping"? If at that point you are still healthy, and it looks like you could outlive your money, perhaps it would be advisable to switch some assets over to (dare I say it?) some sort of annuity.
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That's a good idea.
I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.
I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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10-02-2009, 08:41 PM
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#18
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Moderator Emeritus
Join Date: Dec 2002
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It'll keep everyone else from adding meeting requests to your Outlook calendar for that day...
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10-03-2009, 12:27 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 2,171
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Quote:
Originally Posted by Want2retire
That's a good idea.
I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.
I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
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My mom said she was told something along those lines when she had to start taking her RMD's at age 70-1/2. Once you're past 65 or so, the older you get, the tougher you get. I guess the idea is if you were going to die from heart disease or stroke or cancer, you'd have done it already. If you aren't going to die from one of those, we'll have to wait until you just plumb wear out, and if you change your oil & filters regular, that could take another 20 years or so.
Don't I remember hearing somewhere that over 85's are the fastest growing age group in the population?
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10-03-2009, 11:14 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 2,171
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Quote:
Originally Posted by Want2retire
That's a good idea.
I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.
I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
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So Midpack, just out of curiosity, if your financial plan assumes death at 95, what is "end of plan" at age 108? Are you expecting it to take 13 years to get your estate through probate, or what?
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