Retirement Planning - Lessons Learned

[Brianczaw]

true, but there sure is a huge peace of mind when your mortgage is paid for. There is a lot of value in that.

 

[KennyG]

I'm expecting inflation to pop 10% or more if the $15/hr minimum wage starts to take hold.
For those of us retired without a guaranteed cost of living increases it's devastating.
It's one thing to have a $15/hr minimum wage where the cost of living is high, quite another in poorer areas.
I live part time in Fairfax county Va and part time in Mississisippi. The average income in Fairfax is about $54K/yr, in my neck of the woods in Ms. its about $21K.

I doubt the minimum wage is a strong driver of inflation. The number of people making less than $15 is relatively small and located in specific geographic areas and business segments. Yes, it would put a bit of upward pressure on other wages, but the more significant impact would be streamlining, automation and elimination of low value jobs (with resultant increased unemployment).

I think the uncontrolled inflow of money into an economy that cannot quickly deliver more products and services is much more important. If we inject all this money into "infrastructure" where are we going to find construction workers, healthcare workers, etc? In my area, even the Post Office is advertising for applicants. When did that ever happen before?

 

[riptides]

.... In my area, even the Post Office is advertising for applicants. When did that ever happen before?

It is much more than Postal in my area, it is wide spread skills needed in most every industry. Minimum wage up to high tech types.

It is a good time to be looking for a job, on your terms. Not someone else's.

IMHO, it is a huge shift in the relationship of what it means to be employed. The savvy people will do well in the new economy. The issue will be where do they take the economy and the nation as a whole, next?

 

[Gale Hawkins]

I doubt the minimum wage is a strong driver of inflation. The number of people making less than $15 is relatively small and located in specific geographic areas and business segments. Yes, it would put a bit of upward pressure on other wages, but the more significant impact would be streamlining, automation and elimination of low value jobs (with resultant increased unemployment).

I think the uncontrolled inflow of money into an economy that cannot quickly deliver more products and services is much more important. If we inject all this money into "infrastructure" where are we going to find construction workers, healthcare workers, etc? In my area, even the Post Office is advertising for applicants. When did that ever happen before?

I get your point that inflation is caused by too many dollars chasing too few of goods.

This year my large cup of coffee regular coffee at McDonald's has increased in price by 24%.

I expect many retired people will experience at least a 25% across the board inflation this year.

 

[DieselBound]

I get your point that inflation is caused by too many dollars chasing too few of goods.

This year my large cup of coffee regular coffee at McDonald's has increased in price by 24%.

I expect many retired people will experience at least a 25% across the board inflation this year.

OR, same price but smaller cups!

To me, coffee should NOT be messed with! Mess with sodas (they really are bad for you), but mess for coffee and that's where I draw the line!

As scary as the words "fixed income" might be, "uncontrolled expenses" is worse. My EX once asked me how much money we needed to make (I was "between jobs" at the time) and I responded with: "How much do we expect to spend?"

Know what your expenses are and know what you can pare down, in advance.

 

[Gale Hawkins]

Someone was complaining about fixed income and I said I do not have a problem with fixed income as long as it's fixed high enough.

 

[Gale Hawkins]

I was told by an Old gentleman a long time ago that it doesn't pay to be poor.

Serious I spoke with Social Security as I was about to turn 62 and quickly realized that was a no go. Working another 8 years was a game changer but that's not an option for everyone.

When I signed up to start drawing this last February my brother said he would take a look at retiring early. I suggested him to give Social Security a call and get the numbers and then next time we spoke he says he will be signing up when he get 66 and 4 months he's just turning 65 next month.

Planning retirement is not a simple task in my view.

 

[DieselBound]

The majority of humans know nothing of "retirement." The concept was little known throughout all of human history and didn't really appear in any way until about, what, 100 years ago? There has been, however, means for taking care of people past their ability to contribute to work: tribal; family; community.

The wealthy have pretty much been able to idle themselves down. The poor have always had to keep keeping on. The "advent" of the middle class brought in the notion of "retirement" for other than the wealthy. As things appear to be going I don't see anything other than return to the norm.

Health is the only thing that we have anything but a fraction of a true say in. Sick is sick, no matter whether working, retired, wealthy or poor.

I long ago figured that I probably wouldn't be able to "retire." I set expectations low and it looks like I'll be able to exceed them.

 

[ultrarunner]

If you stop working at 62 but do not collect does the monthly social security continue to increase even with no new contributions coming in?

 

[Brianczaw]

If you stop working at 62 but do not collect does the monthly social security continue to increase even with no knee contributions coming in?

SS averages out your top 35 earning years...So if you start late, have under the table jobs, or stop early; you might have some 0 or lower years in there. This would push your averaged index earnings down.. Go on SSA.gov and set up an account and it will give you estimates..