Retirement thoughts Past Present Future

[Oaktree]

The past two years have been a great time to invest. Everything has been on sale… eventually that will pay off, as it did on 2007-2008… and some of the following years.

Well, yes and no. You've still got to do your homework. Some stocks are down just because the market's down but are still solid companies, others are down for a reason. For example, I don't see Facebook coming back anytime soon, if ever. Glad I got out of it when I was still ahead.

I'm 71. 5'10". 190lbs. Fairly active. No health issues.

I've noticed in the last year my drive to stay active is waning. I need to be in the timber this morning cleaning up some down trees. But here I am sitting in the shop on the computer. Next thing ya know the day is over and I didn't make it to the timber.

This trend is a bit concerning. The less active I am, the less active I want to be. So I start losing muscle mass. I also notice I'm a bit less stable on my feet on a ladder for example. At a pace so slow I barely notice it I'm becoming an old man. If I don't start pushing back that decline will accelerate.....

I've noticed the same thing. Not so much stability, but more endurance. I tell ya, those winter pounds don't come off like they used to!!!

 

[ovrszd]

I've noticed the same thing. Not so much stability, but more endurance. I tell ya, those winter pounds don't come off like they used to!!!

Yep. I've had a head cold for the last 4 days. Haven't accomplished anything. 20 years ago I never missed a stride.

 

[arto98607]

I moved my 401k from 100% Vanguard retirement fund VTHRX to 100% money market a few days ago. MM is earning about 4% and I'm concerned what 2023/2024 will bring. Only time will tell if this is a good decision or not. I know we're not supposed to try to time the market but 4% sounds pretty good right now.

Kevin

Talking about timing - Vanguard Target Retirement 2030 Fund (VTHRX) is down 25 - 30% from it's height just over year ago.

 

[Straightgrain3016]

I feel the need to share my thought on Survivor Benefit Plan (SBP) but I need to innoculate myself before hand.

🛡Personal situations can be unique; every pensioner should do what they think is best for their surviving spouse.

For those future pensioners who may not yet know; Federal Law(s) allow a spouse of a pensioner to hold back significant portions of the pensioner's retirement for pension insurance; so the pension continues if the pensioner dies first.

My father in law was a master carpenter in Ohio; he had to deal with it also, so I believe civilians & military are subject to the SBP that ONLY the spouses can wave-off.

When I was about to retire, they came at my wife (hot n heavy); offering her to hold up to 60% of my retirement pay (after Fed taxes).

When my wife realized the govt. gets to keep the money if she dies before me, she gladly and quickly waved SBP, and we set up our own plan that edges out "big brother's cut".

Choose SPB wisely.

 

[jigs_n_fixtures]

I feel the need to share my thought on Survivor Benefit Plan (SBP) but I need to innoculate myself before hand.

🛡Personal situations can be unique; every pensioner should do what they think is best for their surviving spouse.

For those future pensioners who may not yet know; Federal Law(s) allow a spouse of a pensioner to hold back significant portions of the pensioner's retirement for pension insurance; so the pension continues if the pensioner dies first.

My father in law was a master carpenter in Ohio; he had to deal with it also, so I believe civilians & military are subject to the SBP that ONLY the spouses can wave-off.

When I was about to retire, they came at my wife (hot n heavy); offering her to hold up to 60% of my retirement pay (after Fed taxes).

When my wife realized the govt. gets to keep the money if she dies before me, she gladly and quickly waved SBP, and we set up our own plan that edges out "big brother's cut".

Choose SPB wisely.

Actually, the couple gets less per month if they choose to have the pension set up with survivor benefits. This is because the level of benefit, is calculated on the probability of the beneficiaries to live a number of months. So the probabilities are pretty simple to figure, and if two people are on the program it will run . The payment amounts are set so that the total payout will be same irrespective of which choice the couple makes.

If you don’t have the survivor benefit, and you die, then the other half of the couple gets nothing.

My father survived ten years after he retired. Mom made it another 18-years. If they had chosen to not establish her as the survivor, and take a bit less money she would have been living with one of us kids for those 18-years. Because she would barely had enough to feed herself Based just on her contribution to Social Security.

And statistically most people or couples get more back from Social Security than they put in. So, if they elect a plan which includes a survivor benefit or not, typically if most people were living off their own investments they would run out of money before they die.

If I had taken Social Security at the earliest possible age of 62, my benefit would be cut substantially from taking it at 65, which would be less than going at my “full benefit” age of 66 and 7-months, which is substantially less than if I wait until I’m 70. And if they move the maximum benefit age to 72, and I elect to work until then, I would get an even higher monthly benefit payment. This is because the number of months I will probably be receiving benefits for far less months.

 

[Straightgrain3016]

Actually, the couple gets less per month if they choose to have the pension set up with survivor benefits. This is because the level of benefit, is calculated on the probability of the beneficiaries to live a number of months. So the probabilities are pretty simple to figure, and if two people are on the program it will run . The payment amounts are set so that the total payout will be same irrespective of which choice the couple makes.

If you don’t have the survivor benefit, and you die, then the other half of the couple gets nothing.

My father survived ten years after he retired. Mom made it another 18-years. If they had chosen to not establish her as the survivor, and take a bit less money she would have been living with one of us kids for those 18-years. Because she would barely had enough to feed herself Based just on her contribution to Social Security.

And statistically most people or couples get more back from Social Security than they put in. So, if they elect a plan which includes a survivor benefit or not, typically if most people were living off their own investments they would run out of money before they die.

No doubt there are other opinions than ours; my mother in law wanted it; she still gets a portion of my father in law's pension from the union.

My hope was to show that I think it is possible to do better than the govt. plan; if the pensioner honors the promise to set aside & invest enough money for a spouse to survive, then back it all up with a suitable life insurance policy.

 

[ovrszd]

I feel the need to share my thought on Survivor Benefit Plan (SBP) but I need to innoculate myself before hand.

🛡Personal situations can be unique; every pensioner should do what they think is best for their surviving spouse.

For those future pensioners who may not yet know; Federal Law(s) allow a spouse of a pensioner to hold back significant portions of the pensioner's retirement for pension insurance; so the pension continues if the pensioner dies first.

My father in law was a master carpenter in Ohio; he had to deal with it also, so I believe civilians & military are subject to the SBP that ONLY the spouses can wave-off.

When I was about to retire, they came at my wife (hot n heavy); offering her to hold up to 60% of my retirement pay (after Fed taxes).

When my wife realized the govt. gets to keep the money if she dies before me, she gladly and quickly waved SBP, and we set up our own plan that edges out "big brother's cut".

Choose SPB wisely.

We selected to give my wife SBP. This reduced my benefit. We live comfortably on that benefit. If I die my wife continues to draw a comfortable annuity. If she dies first I continue to draw a comfortable annuity. It's a win/win. No gamble.

So if your "plan" doesn't work out who will take care of your wife?

 

[3Ts]

We optimized our retirement so that most of our SS & pension would be early on. Meaning, when I die all funds stop and there are no survivor benefits from SS or pension. Now, everyone is different and we planned many years ago for retirement and assumed we would not inherit anything from anyone. She has her own SS although it's not much, but we also put money into retirement accounts while we were still working. That has enough in it to provide a comfortable retirement for her without any of the other sources of income.

 

[Fuddyduddy1952]

We've been retired 9 years. I'll never understand how social security enters into anyone's retirement plans. Both wife & I started working in early teens paying into SS. My wife gets $23.10/month, I get a bit more.

 

[riptides]

We've been retired 9 years. I'll never understand how social security enters into anyone's retirement plans. Both wife & I started working in early teens paying into SS. My wife gets $23.10/month, I get a bit more.

Depends how old you are. Pensions are a thing of the past and 401ks take a lot of management even if they offer diversity.