Safe Haven, if possible without...

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Thanks for the great replies! I'm reading and making notes for now (because it's still a workday for me - lucky retired stiffs )

 

[nybirdman]

Every-one's situation is different.I started working full time at 19 years old and be contributing to pension(s) plans since day one.Almost unheard of today.So in my case I have two pensions + hospitalization+medicare myself.Saved quite a bit in a 401k that is now invested by a financial consultant.
My wife has her own very good(NY state) pension when ever she decides to retire and her own savings and investments.
So;I work 42 years;you bet I take Social Security as soon as I can;I paid in for enough years.
My home has been paid off for many years and our only debt(s) are self induced.

 

[dickfoster]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

I have pretty good results with Fidelity but I have a good broker who's been doing my stuff for some years now. He started doing my stuff at Charles Schwab but when they started changing things he moved to Fidelity and I went with him. Finding a good a financial person or broker is lot like finding a good lawyer so I've had some disappointing results with people who came before. Plus he knows that if he screws up, I own a backhoe. Since I've retired, my investment strategy is not as aggressive as it was when I was still working. We still manage to stay ahead of the game by constantly changing the mix but that takes constant attention and work so he earns his fee.

 

[Garandman]

...making a political statement, tell me were you would put your money in my scenario.

~4-5 years from retiring. Can take what I have saved now and what I can add to it between now and retirement and be okay. Won't be okay if my current savings take a hit. I imagine the advice of those already retired and funding it themselves are in a similar situation.

You can find savings accounts that offer 1%: won't be much more unless interest rates go up. CD's (Certificates of Deposit) are the usual medium for larger sums. All that is taxable so it depends on how much you make for the tax bite.

We are about to hire a "Fee Only Financial Planner." You pay them by the hour. They are fiduciaries, the highest level of responsibility. They charge what lawyers do: $250 to $350 per hour, but you may only spend an hour or two with them. Because they are not selling anything and you are paying them directly, they have extensive referral networks for everything from bank accounts to credit cards and mortgages.

 

[zzvyb6]

I'm in S.E. Michigan. Turned all my investment goals and needs to Morgan Stanley advisor(s). They reviewed my financial status a few years before retirement. Helped me set up a Trust account. I took S.S. at 62 at their advise because I wouldn't catch up until 80 y.o. I live off of 4 SPI annuities that I specified the ammount of money I want per month to live off of and enjoy spending on 'stuff'. My 401K (in their hands) is STILL increasing despite my rather substantial monthly withdrawals. I can get cash from my account to buy a car, house, or whatever. They got me good deals on solid gold coins as backup material (I have posession), great tax forms, and a comfortable sense or well being. IMHO its well worth paying a major investment house a percent in order to live worry free, still make money, get checks every month and still be classified 'low income' because my only 'income' is from S.S. This also gives you free drugs from major drug companies including the blue oval shaped pill which also helps with blood pressure !

My advice? Hire a reputable company to manage your money. A few guys I worked with thought they could do it themselves, went broke and now have to work as a security guard and another at Home Depot. I also now buy and sell on eBay and Craigslist for the fun of it and use the profits to keep tractoring.

The only downside to my retirement will probably be the Required Minimum Distribution from my IRA that's coming up in 3 years. That's just painful to think about.

 

[Fossil Farm]

The only downside to my retirement will probably be the Required Minimum Distribution from my IRA that's coming up in 3 years. That's just painful to think about.

There are still good investments that can be made with the money pulled because of your minimum distribution. True, you do not get the tax break, but there are options. Some people I talk to seem to think they have to spend that money or have wild ideas about what they can or cannot do with it. It's just not in your IRA anymore. It is still your money and you still have investment options.

 

[Robert_in_NY]

Talk with a financial adviser, find a good one who you trust and have them help you. My wife is one and I've learned so much from her that I never would have known or even thought of before. My wife works at Merrill lynch and most of the people at her office are great and I would not hesitate to recommend others there.

 

[Oaktree]

Taking early SS at 62 seems ridiculous to me. I can make way more money from 62 till 67 by working and there is no penalty after 66 for other income. I could not have made it on SS at 62 and needed the extra years to get the house done and paid for, and build up some savings. My father retired at 62 and struggled the rest of his life. I have another friend that did it too. Now he is taking odd jobs and barely getting by. Retirement opens the door for travel and other adventures, be ready the best you can.

Depends on your situation. The company I worked for went feet up just before my 62nd birthday. The likelihood of finding another fulltime job with comparable pay & benefits that didn't require a hellacious commute was somewhere between slim and none. I took SS. As it happened I was able to find enough freelance work in my field to get by, indeed SS withheld payments for 6 or so months each year due to my earning over the ridiculously low limit. I turn 66 in a couple weeks, and SS re-calculates my benefits so those months I didn't get a check count as months worked and my payment will be adjusted accordingly. Had I known I'd do as well in self-employment as I did I probably wouldn't have applied for SS early, but way too many horror stories of age discrimination...better safe than sorry.

I am by nature pretty thrifty and have no debt, but as someone else noted living expenses really don't go down all that much with retirement. I figure on keeping the part-time self-employment gig for the foreseeable future. Besides, it gets me out of the house and keeps me mentally active.

There are annuities offered by companies like Vanguard that have limited costs and might be appropriate for some people. However, most sold by advisors are insurance products which have fees and costs that eat up the return. I speak from my experience. I bought an annuity many years ago when my tax rate was very high as a tax dodge. It's supposedly a market indexed fund but has consistently underperformed the market and my other investments because of the management and insurance fees.

Yeah, my wife learned that the hard way. They sound good in theory, but there are so many hidden fees that wipe out most of any gain.

 

[turnkey4099]

If "taking a hit" means losing money in whatever investments you make, then keep it liquid to be safe. Liquid means less risk and less chance for big gains, but if it will make you sleep better at night, it is worth the less risk. Money markets, CD's, etc. are liquid and safe. Stock market type investments can make better returns, but add risk. You can diversify and put a small amount in stocks, just depends on your situation and how you want to go. Don't be persuaded by claims of big gains or you are "losing money" by not investing in XX or YY or inflation will eat your savings. Your life, your decision. You know your lifestyle and your expenses better than anyone, so take some time and determine what income you can live on.

I am almost 81, had a bloated Moneyh Market account earning piss all nothing, same for savings account, basically no interest paid. Took the advice of the bank financial advisor and bought a couple of annuities payable to my estate but with options to withdraw funds in case of medical neeeds. One garauntees 2.5% return, the other they added $35,000 to the amount I bought in with (no interest after that.

Never played in the market, wage slave and military retirement all my life. How those liquid accounts built up to such levels is beyond me. Of course me an wife never livid high on the hog and bought nothing except cars on time. House paid off in half the mortgage time, all vehicles paid off, owe nothing except for taxes. Life is good if I just had my wife back again.

 

[turnkey4099]

I try to get by on social security, a few very small stock dividends, and a couple of pensions. Federal required minimum distribution, in my case, amounts to more than interest increases, so slowly but surely, my savings are diminishing, although not before I'm long gone I hope.
.

I have been kicking my rear for 15 years now since I retired. One of my jobs back in the 80s had a coumpany IRA contribution. They bought us out about 15 years into it. My payout was $23,000. I put it into some sort of IRA. Mine mandatory distribution is also slowly reducing it but I have already drawn way more than !2,000 over the years (mandatory payout) and the IRA is now standing at $19,000. I should have been adding money into it when I was still a wage owner. Too soon old, too late smart.