How to retire at 55 instead of 65 or 70.

jeff9366 · Feb 3, 2018

During your working years have your residence in a state WITHOUT STATE INCOME TAX.

Seven U.S. states currently don't have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

Residents of New Hampshire and Tennessee pay tax on dividends and income from investments.

2ndhalf · Feb 3, 2018

When I chose a newish career path in 2002 I purposely chose something I could do later in life. went from techy in 2002 then I was a project manager and am taking a hiatus from that now.

I think around 60 i will finish my career as a pm. At 70 part time pm or walmart harasser until I get tired.

Ford850 · Feb 3, 2018

BoylermanCT said:
Well, I'm still working but looking forward to retiring, especially since I work in financial services managing large corporate and government retirement plans! I just got my first paycheck with the Trump tax cut withholding changes. My tax withholding went down $85, which translates to $2,000 a year in lower withholding. Assuming my actual tax bill goes down $2,000, I'll be a happy camper! 3 point snowblower here I come!

I noticed the same on my paycheck. Keeping with the theme of this thread, that money should be invested for retirement rather than spent.

RSKY · Feb 3, 2018

I hope the Trump tax break helps us all. I cannot explain to one friend that corporations do not actually pay taxes. They pass them on to their customers. She cannot understand this and gripes about the corporate 'give back'.

Anyway, I figured my taxes last night. Very simple with 5 1099Rs and a few other items. Having to pay federal with a $17 penalty for not having enough held out. Seems going to Social Security last year and dropping my IRA check more than half messed up my calculations. Good thing is that my wife doesn't have to pay state income tax. She is a retired teacher and they are exempt.

Now for the big hit. Before the miss-named "Affordable Care Act" my wife paid less than $50 a month for good health insurance and mine was provided cost free from my former employer. Now we pay nearly $1000/month for less coverage. Taking what the state of KY and my former employer pay, their parts are published, we are paying for ours and four other people's health insurance. Probably four people who never worked and wouldn't work if given a job.

Kinda sucks doesn't it?

RSKY

RSKY · Feb 3, 2018

Oh yeah, one other thing we are doing.

When both sets of our parents retired they continued with their penny pinching normal ways. My wife and I have decided to enjoy life while age and health enable us to. We have spent a month on the gulf coast with both daughters and families staying a week or so with us. We have traveled here and there for a few days. We are going to concerts and sporting events. In other words we are spending some of the money we spent a lifetime acquiring.

Trying to make a point here so stick with me.

When you retire do so with the intent to live. Not just exist. I have a once close friend who does nothing but sit at home and tend a small garden. I don't know what he does in the winter. Watch soap operas I guess. I'm about to go nuts having to stay in due to weather and caution with this hernia surgery recovery (released by medical doctor, not released by wife who has seen others screw themselves up overdoing it). So.....

Don't retire if doing so leaves you in a financial bind and you can't do anything except count out the number of beans or rice you're having for you two meals a day.

We spend far too much on eating out. We spend far too much on the grandkids. We have spent over a thousand this year on concert tickets (gotta see the Eagles one more time before any more of them die off) for us and daughters (paying half for two Justin Timberlake tickets) and I'm taking the two oldest grands to see the Celtic Woman (they love the videos of the princesses singing and dancing).

So when you retire from work don't retire from life.

We are looking at retirement as a way of living more not as a way of sitting around waiting for the 'great retirement from life'.

RSKY

Hanshans · Feb 3, 2018

RSKY said:
Oh yeah, one other thing we are doing.

When both sets of our parents retired they continued with their penny pinching normal ways. My wife and I have decided to enjoy life while age and health enable us to. We have spent a month on the gulf coast with both daughters and families staying a week or so with us. We have traveled here and there for a few days. We are going to concerts and sporting events. In other words we are spending some of the money we spent a lifetime acquiring.

Trying to make a point here so stick with me.

When you retire do so with the intent to live. Not just exist. I have a once close friend who does nothing but sit at home and tend a small garden. I don't know what he does in the winter. Watch soap operas I guess. I'm about to go nuts having to stay in due to weather and caution with this hernia surgery recovery (released by medical doctor, not released by wife who has seen others screw themselves up overdoing it). So.....

Don't retire if doing so leaves you in a financial bind and you can't do anything except count out the number of beans or rice you're having for you two meals a day.

We spend far too much on eating out. We spend far too much on the grandkids. We have spent over a thousand this year on concert tickets (gotta see the Eagles one more time before any more of them die off) for us and daughters (paying half for two Justin Timberlake tickets) and I'm taking the two oldest grands to see the Celtic Woman (they love the videos of the princesses singing and dancing).

So when you retire from work don't retire from life.

We are looking at retirement as a way of living more not as a way of sitting around waiting for the 'great retirement from life'.

RSKY

You hit the nail on the head! Enjoy doing what makes you happy!

RSKY · Feb 3, 2018

Hanshans said:
You hit the nail on the head! Enjoy doing what makes you happy!

Thank you! Too many times in my soon to be 64 years I have swung and smashed a finger. Or even worse swung and realized I was gonna smash a finger but was already committed and couldn't stop.

RSKY

Doofy · Feb 3, 2018

RSKY said:
Thank you! Too many times in my soon to be 64 years I have swung and smashed a finger. Or even worse swung and realized I was gonna smash a finger but was already committed and couldn't stop.

RSKY

Hahahaha. It's like that big rock heading for your brand new windshield...not a darn thing you can do to stop it!

RSKY · Feb 3, 2018

I have had a scare recently. My mother is 93-years old and shall we say.....headstrong. Still drives, still mows her yard, and still looks over my shoulder telling me I'm doing it all wrong when I try to fix something at her place. Usually I find out something needs fixing a month after she has made it worse by trying to fix it herself. The stories I could tell.

So a couple Sundays ago, at Sunday lunch, one of my daughters said I was, "as stubborn as Mamaw".

The conversation went downhill from there, with the sons-in-law knowing to stay quiet, and I was informed that unless I improved my attitude they were already shopping for a rest home to put me in.......in Missouri.......four hours away.

Said they would visit me at least once a month. Maybe more if I minded what they told me to do.

Children these days.

Hopefully that will be years in the future.

RSKY