Mid 50's retirees question

Bob-WY

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Feb 24, 2020
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One thing we've been doing is running the numbers. What's the benefit/payout if work continues another year, or two, or three...

Take the amount you are investing, do the math, add average/conservative growth to the nest egg over that time. See what difference your 1-3 years of contributions makes. The larger the nest egg, the smaller difference your direct contributions makes.

Then judge that vs working part time at a more fun job or 100% retiring.

You may be surprised at the limited difference another year or two of work makes. the bigger change will be defering withdrawals, if you can pump money into savings acccount and live off that for 1-3 years, that allows the nest egg to naturally grow while deferring withdrawals
 

Farmerj

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Dec 12, 2021
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work to live.

Not live to work.

I had a heart attack at age 47…

Too many say, “just one more year…”

For what? Not being able to live your dream today? Once you get too old, what you wanted to do becomes impossible or unrealistic.
 

ElkFever2

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Mar 4, 2019
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Iowa
I feel like these stories of people passing away shortly after retiring is not an accurate picture across the entire population.
You’re right. Public safety careers are a different animal though. I started in 2009 and I’ve lost count of the number of coworkers who died between the ages of 52-64. Make it to 70 and you’re a unicorn. Anyone in my field who wants to enjoy years past retirement, it’s usually best to get out as early as you can swing it financially.
 

Mallardsx2

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On the flip side of everyones hopes and dreams I have personally seen a lot of people who didnt plan very well and then retire early and run out of money and get a job at wal-mart.....
 

AlaskaHunter

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Jan 20, 2017
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1,305
Location
interior Alaska
One thing we've been doing is running the numbers. What's the benefit/payout if work continues another year, or two, or three...

Take the amount you are investing, do the math, add average/conservative growth to the nest egg over that time. See what difference your 1-3 years of contributions makes. The larger the nest egg, the smaller difference your direct contributions makes.

Then judge that vs working part time at a more fun job or 100% retiring.

You may be surprised at the limited difference another year or two of work makes. the bigger change will be defering withdrawals, if you can pump money into savings acccount and live off that for 1-3 years, that allows the nest egg to naturally grow while deferring withdrawals
Another advantage of pumping up the savings account is limiting taxable income for affordable health care until medicare kicks in at age 65. For example, in Alaska as long as we limit our gross income to 89k or less, Obamacare subsidized Blue Cross Gold premium is less than $65 per month that is a saving of over $25k per year for Blue Cross Gold.
 

chadv

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Joined
Nov 11, 2015
Messages
99
Can someone smarter than me say if the 4% rule works? Ive heard varying opinions lately. If it somewhat works 59 for me. With pension and 3 or 4% of 401k Ill make as much as working.
 

peterk1234

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Oct 9, 2019
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166
Can someone smarter than me say if the 4% rule works? Ive heard varying opinions lately. If it somewhat works 59 for me. With pension and 3 or 4% of 401k Ill make as much as working.
Historically, yes. The question we are faced with is will it work in the future? Low interest rates will force you to take more risk in the market. And then there is this inflation thing. I know, I know, it is because of covid so inflation will end once eveyone is injected. But what if it is not the case? Let's suppose that we continue with quantitative easing? Well then the 4% rule goes out the window. I think that today you need to plan for the 2% to 3% rule. Build a buffer.
 

WyoDoug

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Apr 8, 2019
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Cheyenne, Wyoming
I retired early myself but I have four sources of retirement income. We have enough for our basic expenses and then some for extras but not a whole lot. I do odd jobs and doordash for my extras to pay for hunting, fishing and gold panning trips plus wife has her own retirement from hospital and social security. We aint rich by any means but we make a survivable retirement together and can afford a lot more than some retirees that only have their basic retirement plans plus social security to fall back on. Biggest problem I have is retirement itself is boring. You need hobbies to keep you busy plus you have got to keep moving or you gain a ton of weight like I did and develop some health issues related to it.
 

NEW PA MT MN

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Aug 11, 2019
Messages
99
I thought I'd post my thoughts while I a on my lunch break at Amazon. I retired in January 2010 at 56. Never had or wanted to go back to work
Things change. After buying my second Alaska lot and paying it off in three payments .the secy one coming due in February and my wife saying no more money out of savings
On the flip side of everyones hopes and dreams I have personally seen a lot of people who didnt plan very well and then retire early and run out of money and get a job at wal-mart.....
I retired in 2010 at age 56. Never went back to work till this November. At Amazon working the peak. Actually on lunch break. Wife said no more out of savings.
Didn't plan on buying two properties in Alaska and building a cabin on one. Going to start construction on the new one in 2023 when I turn 70.
Most of my friends are dead so I have no regrets. On a side note ,of all the friends left not one could do the job I'm doing. So I'm really blessed.
 

Allenkoz

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Mar 1, 2022
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12
I'm in the process of making a decision in the next year and a half or so on whether to retire from my LE career at age 56, or stay for another year past that, and retire at 57. The difference in staying the additional year until age 57, would get me another $300 a month on the monthly pension that I'll receive. My wife and I are debt free. She will continue working full time, and carry our health insurance for the next 9 years until we hit age 65. During those 9 years, I'm planning on working my part time job about 3 days per week, just so that I can still maintain my current LE salary (pension plus 3 days a week at my PT job =same amount as current LE salary). This will also allow us to continue maxing out our roth IRA. Wife has a 401k at work, she'll also get a full SS check when she retires. I'll get a reduced SS check (Windfall Elimination Program) because of my pension. We keep a very detailed monthly budget, so we are very aware of our monthly needs. Even without staying the additional year to gain the extra $300 per month, we will have enough cash flow to easily cover our monthly expenses.

I'm currently very healthy, and have a decent level of fitness, and am more than ready to step out of this career. Looking forward to more hunting trips, etc. We've talked about this, and agreed that it might be nice to have that $300 extra per month, just to have a little extra. Not sure if it's really worth it or not. I realize this is a decision based on our personal situation.

Were any of you early retirees faced with a similar decision? If so, did you leave early, or stay the extra year or two, and was it worth it?
If you're healthy, I would keep going and maximize the time you can take off while you are working. If it's not enough, then I would call it quits if that's what will make you happiest.
 
Yeti

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