To retire or not retire?

[caps]

Happy Birthday, I also turned 64 in December. I retired last year and don't regret it for a minute. I have more to do now than I ever did. Projects abound! Also I have time to give back a little - got involved with the Lions club, community association, Ham radio club, Social Services, YMCA, meals-on-wheels, camping trips, etc. This is a fairly poor area and there a lots of folks that need a bit of help. Don't know how I ever had time for a job.
My house is located on a lake and if I listen carefully I think I can hear the fish calling now!

 

[Gary Fowler]

If you work till you have enough money to retire, you likely will work till you die. I always wanted to retire at 62 and start my SS benefits ASAP so maybe I would draw out a portion of it before I die. So far that has pretty much worked out. I retired 4 months prior to 62nd birthday and was busily catching up on work around the house when my company called me to work a 8 week job in Algeria. I though why not for just a short period, so I cancelled my SS benefits and took the short job that turned into 5 months but it was still short time and I enjoyed it, especially when it was over. My old boss emailed me about working a job in Saudi Arabia a couple months ago, but I declined. I turned 63 in Dec and dont plan to work anymore for a salary. Winter time for me is boring as I no longer tolerate the cold that well, but summer is always busy with something. The best part and hardest part of retiring is adjusting your wake up time. For 6months I was awake at 0430 each morning. Now I can sleep till daylight most of the time. I have a BIL and sister that get up at 0400-0430 every day and dont do anything but piddle around the house. BIL deer hunts when open and works a part time job along with SS check they do ok.
I was surprised at how little it takes to get by on when retired. House and everything I own is paid for so it is just insurance, taxes, utilities and food. I havent touched my retirement fund yet and dont plan to for a while.
I have a friend that is 70 and still working, every year he claims that he is retiring at end of the year. He has been saying that since 62 but every year he buys something like a motor home or a couple motorcycles etc and then says he has to work another year to replace the money. He could buy a motorcyle every month with his salary and still have money left over so it isnt the money. I think he is scared to retire because so many folks have died shortly after retirement. This is why I took retirement as soon as I could and try to stay active a bit rather than just curl up and die on a sofa.
If you think you can retire financially, go for it. It is GOOD, VERY GOOD.

 

[smstonypoint]

Guidelines are 4 percent per year at age 65 with 50/50 stocks/bonds portfolio. Less if younger than 65. The initial 4 percent figure is adjusted up yearly for inflation.

I did a lot of reading on retirement portfolio withdrawal strategies back before I retired in 2007. Unfortunately, most of the URLs I bookmarked at that time are no longer valid. However, here's an interesting study on portfolio composition and withdrawal rates:http://www.afcpe.org/assets/pdf/vol1014.pdf.

The million figure seems like Wall Street propaganda, not even sure you'll find current thinking in line with that. Especially in today's market.

I'd venture to say, it is a lot more than that needed for current lifestyle, especially if your carrying debt.

Out of curiosity, I checked with Immediate Annuities -- Income Annuity Quote Calculator. to see what you can get if you invested $1M in an immediate annuity in this current period of low interest rates. I am 65 and my wife is 63.

If I invested $1M in a Single Life Income Annuity with No Payments to Beneficiaries, I would receive an estimated $5,667/month for the balance of my life. If I invested $1M in a Joint Life Income (100% to the Survivor) Annuity With No Payments to Beneficiaries, the payout would be $4,529/month until the survivor (she or I) passes.

These payouts are in 2013 dollars, so the purchasing power of the payouts would erode over time with inflation.

Steve

 

[Pine Strip]

Well this retirement discussion turned ugly.

Lets get back on track... thanks

 

[Travelover]

...............
Out of curiosity, I checked with Immediate Annuities -- Income Annuity Quote Calculator. to see what you can get if you invested $1M in an immediate annuity in this current period of low interest rates. I am 65 and my wife is 63.

If I invested $1M in a Single Life Income Annuity with No Payments to Beneficiaries, I would receive an estimated $5,667/month for the balance of my life. If I invested $1M in a Joint Life Income (100% to the Survivor) Annuity With No Payments to Beneficiaries, the payout would be $4,529/month until the survivor (she or I) passes.

These payouts are in 2013 dollars, so the purchasing power of the payouts would erode over time with inflation.

Steve

Yes, you can have a higher payout with an annuity because you get some of the payout from the other annuitants that die young. And of course, it is gone when you are - no inheritance.

 

[smstonypoint]

Yes, you can have a higher payout with an annuity because you get some of the payout from the other annuitants that die young. And of course, it is gone when you are - no inheritance.

I am not advocating immediate annuities, but single and joint life immediate annuities are available that allow for possible payments to beneficiaries.

Here are two examples from Immediate Annuities -- Income Annuity Quote Calculator.:

Single Life Income with Up to 20 Years Paid to Beneficiaries ("20CC")
You receive this income for your lifetime, which means, you can never outlive this income, even after the specified period has ended. If you should die during the first 20 years your beneficiaries will continue to receive this income until the end of the 20th policy year.

Single Life Income with Installment Refund Paid to Beneficiaries ("IR")
You receive this income for your lifetime, which means, you can never outlive this income. If you should die before receiving an amount equal to the premium, your beneficiaries will continue to receive this income in installments until the total amount paid to you and your beneficiaries equals the premium. Payments stop only upon your death after the total premium has been paid back to you and your beneficiaries.

 

[riptides]

I am not advocating immediate annuities, but single and joint life immediate annuities are available that allow for possible payments to beneficiaries.

Here are two examples from Immediate Annuities -- Income Annuity Quote Calculator.:

Single Life Income with Up to 20 Years Paid to Beneficiaries ("20CC")
You receive this income for your lifetime, which means, you can never outlive this income, even after the specified period has ended. If you should die during the first 20 years your beneficiaries will continue to receive this income until the end of the 20th policy year.

Single Life Income with Installment Refund Paid to Beneficiaries ("IR")
You receive this income for your lifetime, which means, you can never outlive this income. If you should die before receiving an amount equal to the premium, your beneficiaries will continue to receive this income in installments until the total amount paid to you and your beneficiaries equals the premium. Payments stop only upon your death after the total premium has been paid back to you and your beneficiaries.

I recall a meeting the gentlemen to discuss my futures and monies. Seems there was this big, huge benefit to my beneficiaires.

Ahh, yeah, like that was not going to happen.

Readjusted accordingly.

I am all for leaving my kids better off, but not to the point they don't know what work is.

Now charity, that is another question.

 

[alchemysa]

If you are worried about being bored or wasting your time, try and develop a small '1 man' business you can continue with in retirement. Something small, simple, and hassle free like handyman jobs, mowing lawns or something else you ENJOY. Don't accept more than a couple of days work a week, and make sure you can always walk away from it when you want to. It doesnt have to make much money. The important thing is that it keeps you active, meeting people and feeling useful. Thats what I've done and I couldn't be happier. (I retired from my full time self-employment at about 55).

I left school at 16 and stepped straight into work the next day. Barely ever had a day off 'til I retired. Thank heavens I didnt ever have a period of 'unemployment'. I think I might have enjoyed it too much, or got too lazy, and never gone back to work! Suffice to say I love my 'retirement' now.

 

[alchemysa]

My dad retired at 50 and said he never understood how he did what he did while working, .

I absolutely understand that. Sometimes I look back and see what I did for 40 years and think 'What the **** was I thinking?' Actually its not something I want to think about too much 'cos it can be a bit depressing!

 

[Travelover]

I am not advocating immediate annuities, but single and joint life immediate annuities are available that allow for possible payments to beneficiaries.

...........

Yes there are lots of variants of annuities with different payout schemes and for some people they make sense. Right now with interest rates this low, it is a particularly bad time to buy one.