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I wish I knew before (or after) I retired???
- Thread starter JoseSantiago
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Done, like your username and thank you for this feedback!
hpnutty
Recycles dryer sheets
Agreed.
I wish I would have considered that the timing of my retirement date WAS NOT UP TO ME.
My big error was thinking "the date" was in my control. It wasn't.
An unexpected medical condition led to an "early retirement."
Years of FIRE planning saved my butt, but had I should have had more private disability insurance.
My big error was thinking "the date" was in my control. It wasn't.
An unexpected medical condition led to an "early retirement."
Years of FIRE planning saved my butt, but had I should have had more private disability insurance.
NXR7
Recycles dryer sheets
I poured as much money as I could into 401(k), IRAs, etc as I could for the last ten years. That taught us to live on less for many years and it's a lesson I gave my kids.
I told them to max it out because they could always cut contributions back if it was too much, but if they saved too little they would just spend more.
In the last year I cut back on any pre-tax contribution that was not employer-matched and stuck it in a separate account. That built up a nice cash reserve outside of the normal bill-paying checking account.
I also had some 401(k) stock paying a nice dividend that was being reinvested. I stopped that in the last year and had all of the dividends sent to a separate brokerage account where it became another cash stash. Yeah, taxes, but cash is cash.
BTW, TFSL currently is paying 6.6% and do not believe the bot-writing analysis companies. Their dividend is nowhere near the income percentage the bots think. They don't know how to read.
When doing planning I focused on expenses and shook my head at the idiot calculators that ask you for gross income. It matters not what you make, it matters what you spend.
Once you're retired your spending will not decrease much but you no longer save for retirement. So if you were putting 25% away into retirement, you're no longer doing that so you do not need to replace that income.
I live in Ohio, one of 18 states that allows cities and counties to levy their own income tax in addition to the state and federal income taxes.
Those taxes are only on earned income, so W-2 income, not investment income or SS or retirement income from pensions. After I stopped working my tax burden dropped by 3.5% immediately. Once I realized that and adjusted my planning, my existing plan showed it could last almost two more years. Nice!
Ray
I told them to max it out because they could always cut contributions back if it was too much, but if they saved too little they would just spend more.
In the last year I cut back on any pre-tax contribution that was not employer-matched and stuck it in a separate account. That built up a nice cash reserve outside of the normal bill-paying checking account.
I also had some 401(k) stock paying a nice dividend that was being reinvested. I stopped that in the last year and had all of the dividends sent to a separate brokerage account where it became another cash stash. Yeah, taxes, but cash is cash.
BTW, TFSL currently is paying 6.6% and do not believe the bot-writing analysis companies. Their dividend is nowhere near the income percentage the bots think. They don't know how to read.
When doing planning I focused on expenses and shook my head at the idiot calculators that ask you for gross income. It matters not what you make, it matters what you spend.
Once you're retired your spending will not decrease much but you no longer save for retirement. So if you were putting 25% away into retirement, you're no longer doing that so you do not need to replace that income.
I live in Ohio, one of 18 states that allows cities and counties to levy their own income tax in addition to the state and federal income taxes.
Those taxes are only on earned income, so W-2 income, not investment income or SS or retirement income from pensions. After I stopped working my tax burden dropped by 3.5% immediately. Once I realized that and adjusted my planning, my existing plan showed it could last almost two more years. Nice!
Ray
HI Bill
Thinks s/he gets paid by the post
- Joined
- Dec 26, 2017
- Messages
- 2,556
- Take on more responsibility earlier in my career (transition from staff scientist to project manager when first offered, less than a year out of college, rather than waiting 14 years), which would help with earning more $ earlier!
- Don't buy a new sports car worth 2/3 of your salary your first year out of college.
- Buy, don't rent earlier (if in a coastal/high COL area).
- Don't wait to start investing until your 3rd year out of college.
- Save more, earlier.
- Do more travel earlier.
- Retire at 50, rather than 55.
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
That's very unfortunate and Mrs. Gump was right about the box of chocolates.
I always carried a lot of disability insurance and never once had to dip into it. I am alway very thankful that the money I put into the insurance was wasted. I'm happy for you that your FIRE planning started early. I always "saved" but never really understood investing or "planning" until I found this sight just a few years before FIRE. Best of luck to you and much Aloha.
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