Want to retire now but with concerns

[pb4uski]

I am in the high bracket because of my RMD. I use QCD;s extensively as I get the most bang for the buck. For example, if I have a RMD of $10000. I will have to pay about 33% tax for federal and state. If I donate it as a QCD, it saves me $330. Of course, this assumes I had planned to make the donation anyhow.

I've got some some very good news for you.

If you have a RMD of $10,000 and donate it as a QCD, it saves you $3,300, not $330!

 

[Souschef]

I've got some some very good news for you.

If you have a RMD of $10,000 and donate it as a QCD, it saves you $3,300, not $330!

OOPS! slipped a decimal. It was early in the AM before my first cup of coffee

 

[meleana]

Hi, We have been thinking and planning about retirement for a while. We are in our early 60s.

Financially, we are in decent shape. We both have small pensions and qualify for SS. Last analysis says we have a near perfect chance to spend about $10K a month after tax if I walked out today.

Our concerns are mostly in two areas. The #1 is the cost of health care. If we do Roth conversion before we start taking SS, the taxable income is likely pushing us out of ACA.

The #2 is what to retire to? Travel the world is our desire. But it is not practical to be on the road more than a couple months a year. What do you do with all these free time? I have heard several cases that people went back to work due to "I am bored".

Glad to find this community. I don't think our situation is that unique. Looking forward to hearing about your experiences. Any tips and comments will be greatly appreciated.

We live on cash only ( no pensions or SS) the past three years- no more than $4000 per month- actually less.

Did ACA with someone st full subsidies due 1 1/2 years while hubby was on Medicare. Started doing a Roth conversions after that.

As for lifestyle- you won’t believe how busy you can be if you set your mind to it.

We moved to a vacation area in a 55 + type of community ( though not she restricted)

We take our time in the mornings with coffee and tea and breakfast. Exercise. Hubby goes fishing. I go to the pool or float on the gorgeous nearby lake. We go to local theatre and movies. Lots of socializing. Got involved with a few “ political” type groups and met lots of people.

We can chill when we want. More time to prepare some meals. More restaurant meals. Parties at the clubhouse.

It’s really great!

 

[Koolau]

We live on cash only ( no pensions or SS) the past three years- no more than $4000 per month- actually less.

Did ACA with someone st full subsidies due 1 1/2 years while hubby was on Medicare. Started doing a Roth conversions after that.

As for lifestyle- you won’t believe how busy you can be if you set your mind to it.

We moved to a vacation area in a 55 + type of community ( though not she restricted)

We take our time in the mornings with coffee and tea and breakfast. Exercise. Hubby goes fishing. I go to the pool or float on the gorgeous nearby lake. We go to local theatre and movies. Lots of socializing. Got involved with a few “ political” type groups and met lots of people.

We can chill when we want. More time to prepare some meals. More restaurant meals. Parties at the clubhouse.

It’s really great!

When you say "cash" are you speaking of bank accounts, CDs, checking accounts??

 

[rickster55]

I retired in 2011 at age 55. Haven't been bored yet. Today was actually a slow day for me. I'm a hobbyist beekeeper and bottled 24 pounds of honey today. Other than that I picked vegetables from the garden and pulled a few weeds. Yesterday I hiked almost four miles and took a nap in the afternoon. When I'm not doing something physical I'm reading. Love to learn.

Calculations say I can spend $9,000/month but only spending about $6,000/month. Travel while you can. I'm going on a 7 day Alaska cruise the first week of August. I've developed GERD so I won't be able to enjoy all the food but there will be wonderful sights to see!

 

[Retired Expat]

Hi, We have been thinking and planning about retirement for a while. We are in our early 60s.

Financially, we are in decent shape. We both have small pensions and qualify for SS. Last analysis says we have a near perfect chance to spend about $10K a month after tax if I walked out today.

Our concerns are mostly in two areas. The #1 is the cost of health care. If we do Roth conversion before we start taking SS, the taxable income is likely pushing us out of ACA.

The #2 is what to retire to? Travel the world is our desire. But it is not practical to be on the road more than a couple months a year. What do you do with all these free time? I have heard several cases that people went back to work due to "I am bored".

Glad to find this community. I don't think our situation is that unique. Looking forward to hearing about your experiences. Any tips and comments will be greatly appreciated.

Kind of depends on your personality and lifestyle. If you are a DIY person but have been calling "the guy" when repairs are needed, lawn needs cutting etc but work had you too busy, too tired or as was my case, just away from home alot.... You will be amazed how many Hours, days, months and years will get filled up by projects..... Or go back and study.. How about instead of traveling to France for a couple of weeks vacation you arrange a property swap for a few months? in which case you are going to fill many nights studying French before you go...

we probably travel 3-4 months a year now if you count our 2nd home. As it is about 24 hours door to door we look at it as a vacation home and during the rest of the year it gets rented out.

Kind of like a side hustle which is also something you could do to keep you busy and make a little money, if that is a concern. When i really have nothing whatsoever to do, I can go take a nap totally guilt free. However far more likely is my DW will whip up a list of things she wants me to do....

13 years in an boredom is really not a problem!

 

[meleana]

When you say "cash" are you speaking of bank accounts, CDs, checking accounts??

Yea. Exactly. We have a big cash reserve and using it to live on. Hubby will start collecting SS next year at age 70. I am 67 and will also wait until age 70.

 

[KarenF]

I feel very busy 2 years after retirement. I am still scanning and organizing all our photos. I work on genealogy. We go on 2-3 3 week trips a year, that is a good trip length for us. The grandkids keep us busy and I started a pet sitting business for fun (it is more successful than I want so I keep raising my rates).

 

[Northforker]

The true definition of success.

"Having control over your own time."

Kevin O'Leary aka Mr. Wonderful

 

[Librarian]

Fair concerns

Hi, We have been thinking and planning about retirement for a while. We are in our early 60s.

Financially, we are in decent shape. We both have small pensions and qualify for SS. Last analysis says we have a near perfect chance to spend about $10K a month after tax if I walked out today.

Our concerns are mostly in two areas. The #1 is the cost of health care. If we do Roth conversion before we start taking SS, the taxable income is likely pushing us out of ACA.

The #2 is what to retire to? Travel the world is our desire. But it is not practical to be on the road more than a couple months a year. What do you do with all these free time? I have heard several cases that people went back to work due to "I am bored".

Glad to find this community. I don't think our situation is that unique. Looking forward to hearing about your experiences. Any tips and comments will be greatly appreciated.

Our pensions bring us about $7500/mo. net. (too young for SS yet)

Insurance is $1300/mo. Sucks, but it is what it is.
We are able to get it thru our teacher's union; probably could get ACA for $1K, but we know what we get with this plan since it is BC/BS we have had our entire careeers.

Our investments are for travel--we are traveling A LOT. Monthly the last year since I retired (DH retired in 2021); probably bi-monthly (ish) moving forward.

HAVE NOT BEEN BORED YET.

What do we do?
Read (LONG list of books to read)
Watch movies/series never had time to watch (again, a list...)
Golf (DH)
Walk (me)
Research travels (me)
Scrapbook (me)--insert your hobby here
Volunteer
Go out with family & friends
We try to do one "new" thing in our community each week. Hit a brewery, winery, music event, restaurant we haven't tried. "Date night" (this requires a little research too)

(I know friends who play tennis, go to the gym, garden, decorate/renovate, work on cars, knit/sew, etc)

This is just the FUN stuff! There are always household chores to do--daily, weekly, monthly, seasonally, occasionally.
My father needs to be driven to appointments--that's pretty much an unpaid part-time job for me!

I know there are people who get bored. If you enjoy work so much that no other options sound enjoyable, then I wouldn't retire!
We both loved our jobs but are loving retirement--the freedom to do what we want when we want is AMAZING.