And finally be able to buy your flying car?

Flying car? Nah. I never bought into that idea, always figured flying cars was about as good an idea as flying cows, the way people drive...

 

Sounds like you and I are pretty much in the same boat. I too had parents that were not well educated. I had no one to give me advice.

Both of my parents died when I was in my mid-teens, so I didn't even have their experience to benefit from.

While some people want to make all of their money working for them with pretax investments, I liked the idea of just paying now as opposed to later.

There are even so-called financial advisors that didn't understand the benefit of having after tax retirement funds. The more options you have, the better off you are. I wish I had some funds in a Roth IRA.

It would also mean no more travel on vacation. I just don't want to make that sacrifice because it is something I enjoy and I am capable of doing it now.

Life is about compromises. I got off of the big house, new car, fancy vacation, dine out, keep up with the Jones' treadmill long ago. I'd rather be able to retire.

I know far too many people who are on the "work till you die" retirement plan.

When we had our first child, my Wife stopped working and hasn't worked outside of the home since then. We went from being double income no kids to two kids and one income. When I retired, we finally changed her job description from Homemaker to retired.

 

Both of my parents died when I was in my mid-teens, so I didn't even have their experience to benefit from.

Sorry to here. That must have been really difficult to deal with at an early age.

There are even so-called financial advisors that didn't understand the benefit of having after tax retirement funds. The more options you have, the better off you are. I wish I had some funds in a Roth IRA.

I max out my Roth every year. Have been doing that almost since you were allowed to have both a Roth and 401K, Before that I was putting it in a post tax fund. Perhaps I was being naive but the main plan there was to try and retire when I was 55. Maybe if 2008 didn't happen I would have made it. Either way it is nice to know a significant portion of what I have saved belongs to be and not Uncle Sam.

Life is about compromises. I got off of the big house, new car, fancy vacation, dine out, keep up with the Jones' treadmill long ago. I'd rather be able to retire.

I know far too many people who are on the "work till you die" retirement plan.

When we had our first child, my Wife stopped working and hasn't worked outside of the home since then. We went from being double income no kids to two kids and one income. When I retired, we finally changed her job description from Homemaker to retired.

I have never been a keep up with the Jones's kind of guy. That is why I lived where I lived for so long. Also why keep a car 12-15 years. Also why I really need a new kitchen and need to have a Bath Fitter done on the tub but I have refrained. I do like to travel. I have been to some really great places and had a lot of great experiences. With just a few exceptions every trip was money well spent as far as I am concerned. I have one car, I don't go out much, don't spend any money on cable. All in all careful at what I spend.

But I know what you mean. A co-worker of mine is a "if I can afford the payments" kind of guy. He would criticize me for looking at the property taxes when buying a house. His thinking. If you can afford to make the payment who cares. He buys a car every 4-5 years. Buys used but he gets one with all of the bells an whistles so for a late model pretty much the price of a new car.

My brother is the same. Just the two of them. They have several cars, a huge 5 bedroom with pool, often more than one very expensive vacation a year. My guess, he wll be working till he drops.

 

Sorry to here. That must have been really difficult to deal with at an early age.

If not for the kindness of one of my Mother's friends, we (5 kids ages 5-17) would have have been split up and put in foster homes. When our guardian died several years, her business partner took us on.

People in our town who didn't even know us helped us. Strangers showed up at our house with food. I had a paper route at the time and my circulation manager came to get my route book. I thought I was being fired, but he found someone to do my route and he went to all of my customers seeking donations to help us. A community group held a rummage sale with proceeds going to us. It wasn't a lot of money, but it was the thought. Just about everyone in town knew about our situation. Some tried to help us and some tried to take advantage of us.

That reminds me that I need to write a letter to the local newspaper to update the story.

 

If not for the kindness of one of my Mother's friends, we (5 kids ages 5-17) would have have been split up and put in foster homes. When our guardian died several years, her business partner took us on.

People in our town who didn't even know us helped us. Strangers showed up at our house with food. I had a paper route at the time and my circulation manager came to get my route book. I thought I was being fired, but he found someone to do my route and he went to all of my customers seeking donations to help us. A community group held a rummage sale with proceeds going to us. It wasn't a lot of money, but it was the thought. Just about everyone in town knew about our situation. Some tried to help us and some tried to take advantage of us.

That reminds me that I need to write a letter to the local newspaper to update the story.

Try to remember all of those that helped. Forget the ones that tried to take advantage. There are always animals out there trying to take advantage of othere.

I assume both parents died at the same time? Wow that would be really hard to deal with. Nice to know there were people that cared.

 

I was very lucky to have a job where I met the requirements for their deferred income plan. I put about a quarter of my earnings into it for about 4 years, tax deferred. I am now retired and everything I saved and what it earned (it is invested much like a 401K) is being payed out over 5 years. So for my first 5 years of retirement, I am enjoying a paycheck that is a little more than enough to cover my expenses. Essentially, I am getting paid for the first 5 years (3 so far, 2 more to go) of my retirement. Interestingly, this program is not open to people until they reach a certain grade level, and you are never told about it until then. Only risk in this plan was that if the company goes bankrupt, I would lose it all, it was not protected like a 401K would be.

After that, I have to start using my small pension, my wife's small pension, our 401Ks and additional savings. I am pretty much OK.

I am loving retirement, and things would have to get pretty bad before I would want to work again. Starting last week, I am serving on a grand jury for 3 months, which I find fascinating so far, and I get $50 a day for it.

Bob

 

I am loving retirement, and things would have to get pretty bad before I would want to work again. Starting last week, I am serving on a grand jury for 3 months, which I find fascinating so far, and I get $50 a day for it.

Being able to finally have time to do the things you've always wanted to do is a huge benefit.

I'm hoping to be called to serve on a grand jury. I've been summoned 3 times, and served on one jury. It shocked me to learn how some people think (and hope many of them wouldn't be on a jury of my peers if I found myself being prosecuted for something), but it's a civic duty that I take very seriously.

 

I assume both parents died at the same time?

In a span of a couple months.

 

OK. So here is one for you guys without a pension like me. . I just got a call from my buddy. He is retired. He is really set. Has significant amount of cash set aside plus his pension combined with SS is about as much as my current take home pay.

He just bought a new truck Paid $26K I didn't ask but I am sure he paid cash. But he has a pension and is making more each year than he needs to live on. I won't be so lucky. No pension.

So how do you handle those big purchases when you don't have a lot of cash coming in? Yeah I know get them out of the way before you retire but that is not possible for me. I just bought a car 4 years ago and will likely be retired before I buy a new one. So how do you handle that? suck it up and pay cash?

This retirement stuff is going to be scary.

BTW I do have a small deferred pension that won't kick in till I am 67.

 

So how do you handle those big purchases when you don't have a lot of cash coming in? Yeah I know get them out of the way before you retire but that is not possible for me. I just bought a car 4 years ago and will likely be retired before I buy a new one. So how do you handle that? suck it up and pay cash?

I've paid cash for my last half dozen vehicles. One was new, the rest were used. The key is to have cash on hand to deal with emergencies or luxuries.

This retirement stuff is going to be scary.

I was looking forward to it because, on paper, we were supposed to have a surplus every month. It didn't work out that way...

BTW I do have a small deferred pension that won't kick in till I am 67.

I had a small pension from my company. My financial advisor said he could give me a better return so I cashed it in. I think I should have kept it.

 

All of my cars have been new. But I keep them for a minimum of 10 years. 12-15 is more typical. I looked at used the last time I bought. The prices for a late model were not that awful far from a new one. Everyone wants the bells and whistles so that is what is available. I would rather buy new and not have all of the gadgets.

The "new" car is 4 years old now and only has 24K miles. I can easily go a day or two without sing it at all since I don't go into work anymore. My car is now garage kept. Something I did not have at the old place. It is now garage kept. So it should last me a while baring any unforeseen issues ans assuming I care for it.

My pension was my cash. Not a ton of money. Money from an old IRA. I thought it was a g0od insurance policy to get it. I have no heirs so no big deal.

Speaking of no heirs, has anyone looked into a reverse mortgage? Since I have no heirs I wonder if it would be a good deal for me. That should buy more than one car.

 

Looks like a bad idea.

https://www.cnbc.com/2015/04/01/rethinking-reverse-mortgages-bad-move-or-bright-idea.html

I did not realize that you needed to pay interest. I thought the lending company simply took the house when you retire.

 

I don't think I'll ever really voluntarily "retire." I'm enjoying being self employed and maybe my opinion will change in the next 35 years, but for now I see myself just getting more and more selective with the jobs I take. Only working for customers I like, when I feel like working. I Will probably work until I die, not because I have to, but because I want to. Working gives me purpose and I feel like if that were taken away, I would waste away shortly thereafter.

 

Making the switch between saving for retirement and spending was the most difficult aspect of retirement.

Eventually I moved most of my savings into high yield closed end exchange traded funds and now get regular monthly payouts, a lot like a paycheck but without the hassle. Wish I had done it 10 years earlier.

 

I retired many years ago. The only thing I can tell you is, for my family, annual expenses rose about 20% after retirement, contrary to what the planners of the time suggested. Since that rise expenses have pretty well followed cost-of-living stats.

My guess is that if you have the energy and inclination to travel or do something else that costs money your expenses will rise too. If you stay home and don't suddenly fall in love with Opera, Theater, Dance and or Music and you don't start dining at fine restaurants your expenses will not rise much.

 

Oh, and don’t believe that you will spend less in retirement. With all that free time, we are spending more than when I was working.

Bob

 

I'm spending less money in retirement. My retirement income is about a third of my income while working so I have to. We weren't as careful as we could have been about pre-retirement spending.

 

Ouch.

Actually, my retirement income is about half of my latest working years, but I was saving more than half my income then.

Bob

 

Ouch.

Actually, my retirement income is about half of my latest working years, but I was saving more than half my income then.

It's not that bad. My retirement income puts me in the middle class. That lets me claim federal subsidies for health insurance and I can slowly sell stock and pay no taxes on capital gains (assuming that benefit wasn't erased in the middle income tax cuts).

 

The vast percentage of my expenses right now are mortgage principal. I am trying very hard to get the house paid off. Escrow (property tax and insurance), food (includes restaurants), utility bills are all about equal. These are followed by home upkeep costs and automobile costs about equal.